Buying your first home in St. Louis, Missouri or the Metro East, Illinois
Everything I walk first-time buyers through: the steps, the myths, what it really costs, how Missouri and Illinois differ, the money programs that can help, and the people you'll work with. Updated October 2026.
How buying your first home works
Seven steps from first conversation to keys. Most buyers take 30 to 90 days from pre-approval to closing.
Talk through your goals
We cover your budget, the monthly payment you're comfortable with, your timeline and your must-haves. No cost and no pressure.
Get pre-approved
A lender checks your income, debts and credit and tells you how much you can borrow and which programs you qualify for. Do this before you tour, so you know your real price range and sellers take your offer seriously.
Sign a buyer agreement
Required before we tour homes together. It spells out what I do for you and how I'm paid, so there are no surprises later.
Tour homes
I set up a search that matches what you want and we tour the homes worth seeing. I'll point out the things that cost money later: roof, furnace, water heater, foundation, windows.
Make an offer and negotiate
I pull comparable sales so your offer is based on data, then negotiate price, closing-cost help and terms on your behalf.
Inspection, appraisal and occupancy permit
You hire a home inspector and we decide together what to ask the seller to repair or credit. Your lender orders the appraisal. In most towns on both sides of the river, the city also has to inspect the home and issue an occupancy permit before you move in.
Close and get your keys
We do a final walk-through, you sign at closing and the house is yours.
What holds first-time buyers back
"I need 20% down."
No. FHA loans allow 3.5% down, some conventional loans allow 3%, and USDA loans in eligible areas allow zero down. Putting less than 20% down usually means paying mortgage insurance, which is often worth it to start building equity sooner.
"My credit isn't good enough."
Many loan programs accept scores in the 600s, and the state assistance programs in Missouri and Illinois start at 640. If you're not there yet, a lender can tell you exactly what to fix and how long it should take.
"Renting is cheaper."
Sometimes, month to month. But in much of St. Louis and the Metro East, a mortgage payment on a starter home is close to rent, and every payment builds equity instead of paying someone else's mortgage.
"I should wait for rates to drop."
Nobody can time rates. Buy when the payment fits your budget today. If rates fall later, you may be able to refinance.
Mistake: shopping before pre-approval
Falling for a house you can't afford, or losing one because you weren't approved yet, is the most common first-time buyer heartbreak.
Mistake: new debt before closing
Don't finance a car, open a credit card or change jobs between pre-approval and closing. Your lender checks again right before closing, and new debt can sink your loan.
Mistake: skipping the inspection
A home inspection costs a few hundred dollars and can save you thousands. It's your chance to learn the condition of the roof, furnace, plumbing and foundation before you commit.
Mistake: forgetting the costs beyond the down payment
Closing costs, the inspection, the appraisal, moving and the first few repairs all add up. Plan for them now, or negotiate for the seller to help.
The money you'll need, and when
Exact numbers depend on the price, the loan and the program. Your lender gives you a written Loan Estimate with the real figures.
- Earnest money, at offer. A good-faith deposit held until closing and credited toward your purchase. Often around 1% of the price, sometimes less.
- Home inspection, right after the offer is accepted. Usually a few hundred dollars, paid to the inspector. Radon, sewer scope and termite checks cost extra.
- Appraisal, during the loan process. Paid through your lender. It confirms the home is worth what you're paying.
- Down payment, at closing. 0% to 3.5% for many first-time buyers, depending on the loan.
- Closing costs, at closing. Lender fees, title insurance, recording fees and prepaid taxes and insurance. Commonly 2% to 5% of the price. Sellers can agree to pay part of them, and assistance programs can cover more.
Buying in Missouri vs. Illinois
The same metro area, but different laws, taxes and paperwork. These are the differences that matter most to first-time buyers.
| Missouri (St. Louis City & County) | Illinois (Metro East) | |
|---|---|---|
| Property taxes | Lower. Missouri's average effective rate is close to the national average. | Higher. Madison and St. Clair counties have had effective rates roughly double the national average. Homes often cost less to buy, so compare total monthly payment, not just price. |
| Transfer tax | None. | State tax of $0.50 per $500 of price, plus county tax. Usually paid by the seller, but the contract decides. |
| Personal property tax | Yes, yearly on vehicles you own. | None. |
| Radon | No state disclosure law. I still recommend testing. | Sellers must give you a radon pamphlet and disclose any known test results. |
| Home inspectors | Not licensed by the state. Ask for certification and insurance. | State-licensed. |
| Mine subsidence insurance | Optional coverage you can buy separately. | Included automatically with homeowners insurance in many southern Illinois counties. |
| Occupancy permit | Required by most municipalities. St. Louis County inspections can take four to six weeks to schedule, so we start early. | Required by most towns, with rules and fees that vary. In Collinsville, for example, the seller applies before closing. |
| Closing | Handled by a title company. Buyers don't typically hire an attorney. | Handled by a title company. Buyers in the Metro East don't typically hire an attorney either. |
| Contract forms | St. Louis REALTORS® forms. | Southwestern Illinois Board of REALTORS® forms. |
Programs that can help you buy
Figures as of fall 2026. Programs change and local funds run out, so a lender confirms what you qualify for. You can often combine a state program with seller-paid closing costs.
- MHDC First Place
- For first-time buyers and qualified veterans. Cash assistance of 4% of the loan for your down payment and closing costs, forgiven if you live in the home 10 years. Minimum credit score 640. Income and price limits apply.
- MHDC Next Step
- The same 4% forgivable assistance for first-time and repeat buyers, with higher income limits.
- Beyond Housing (St. Louis County)
- Has offered up to $7,000 at 0% interest, forgiven over five years, after a free orientation. Not available for St. Louis City homes.
- St. Louis City programs
- City programs open and close as funding allows. The Housing Partnership has offered assistance for income-qualified City buyers. Ask me what's open now.
- IHDAccess Forgivable
- 4% of the price, up to $6,000, forgiven monthly over 10 years. No monthly payment.
- IHDAccess Deferred
- 5% of the price, up to $7,500, at 0% interest. Nothing due until you sell or refinance.
- IHDAccess Repayable
- 10% of the price, up to $10,000, at 0% interest, repaid monthly over 10 years.
- Madison County HOMEbuyer Program
- Has offered up to $15,000 for income-qualified first-time buyers in Madison County, forgivable over time.
IHDA programs generally need a 640 credit score and at least $1,000 or 1% of the price from you.
Who you'll work with
I coordinate all of them and keep the deal on schedule. Selling a home at the same time? The Seller Guide covers that side.
- Lender. Gets you pre-approved, finds the right loan and assistance program, and funds the loan. Pick one who knows first-time buyer programs.
- Home inspector. Checks the home's condition after your offer is accepted. You choose and pay them.
- Appraiser. Hired through your lender to confirm the home's value.
- Homeowners insurance agent. Your lender needs proof of insurance before closing. Shop a few quotes early.
- Title company. Checks that the seller can legally sell, issues title insurance and handles the closing.
- City occupancy inspector. Inspects the home for the town's occupancy permit.
Ask me for lender recommendations. I work with local loan officers who know the first-time buyer and down-payment assistance programs.
Questions buyers ask me most
If yours isn't here, call or text 314-494-6038.
How much house can I afford?
Start with the monthly payment you're comfortable with, including taxes and insurance, not the maximum a lender approves. In Illinois, property taxes add more to the payment than in Missouri, so compare payments, not prices. A lender's pre-approval gives you the real ceiling.
Do I need 20% down?
No. FHA loans allow 3.5% down, some conventional loans 3%, and USDA loans in eligible areas zero. Missouri's MHDC and Illinois's IHDA programs can help with the down payment and closing costs.
What credit score do I need?
It depends on the loan, but many first-time buyer programs start at 640, and FHA can go lower. A lender can review your credit and tell you exactly where you stand.
What counts as a first-time buyer?
For most programs, it means you haven't owned a home in the last three years, so past owners can qualify too. Each program sets its own rules.
What does it cost to work with a buyer's agent?
Commissions are negotiable. Before we tour homes, we sign a buyer agreement that spells out exactly how I'm paid. In many deals the seller covers some or all of it, and I'll explain your options up front.
How much are closing costs?
Commonly 2% to 5% of the price. Your lender gives you a written Loan Estimate. Sellers can agree to pay part of them, and down-payment programs can help with the rest.
How long does it take to buy a home?
Searching can take a few weeks or a few months. Once your offer is accepted, closing usually takes 30 to 45 days.
Should I buy in Missouri or Illinois?
Compare the full monthly payment and the commute. Metro East homes often cost less to buy, but Illinois property taxes are higher. Missouri charges personal property tax on vehicles and Illinois doesn't. I'm licensed in both Missouri and Illinois, so you can look on both sides of the river before deciding.
What is an occupancy permit?
Most towns on both sides of the river inspect a home when it sells and issue a permit before the new owner moves in. Rules, fees and timing vary by town, and some inspections take weeks to schedule, so I check the requirements as soon as we're under contract.
Do I need a home inspection if the house looks fine?
Yes. A home inspection costs a few hundred dollars and can uncover roof, furnace, plumbing or foundation problems you can't see on a tour. It's also how we negotiate repairs or credits.
Can I buy a home that needs work?
Yes, but go in with a plan. An inspection and contractor quotes tell you what you're taking on. Some loans also have standards for the home's condition, so we check with your lender first.
Do I need a real estate attorney?
Not usually. On both sides of the river in the St. Louis area, a title company handles the closing and buyers don't typically hire an attorney. I review every contract and deadline with you, and you're always free to hire one if you want.
What happens at closing?
We do a final walk-through, then you sign the loan and title documents, pay your closing funds and get the keys. Plan on about an hour.
How do I get started?
Book a free buyer consultation or call or text me at 314-494-6038. We'll talk through your budget and timeline, and I'll introduce you to a lender for pre-approval.
He’s great at explaining concepts that are way above my head in a way I can understand. He also helped us get into a program for $6K towards closing.
As a first time homebuyer, searching for a home was quite intimidating. Gary was very helpful guiding me through each step in the process. He was always available to answer any questions and alleviate any of my concerns.
I’m a first time homebuyer… I had several issues with the lender and each and every time gary was right on it trying to get it all sorted out as quickly as possible. 10/10 all around.
Sources: Missouri Housing Development Commission; Illinois Housing Development Authority; St. Louis REALTORS®; City of Collinsville; Illinois Policy Institute property tax report. Program terms change, so confirm current details with a lender.