Frontier Mortgage

Is a 20% Down Payment Necessary to Buy a Des Moines Home?

Tue, 28 Apr 2026 07:32:00 -0500

Are you planning to buy a new home in Des Moines, but worried that saving up for a 20% down payment seems impossible? You’re not alone. Many first-time homebuyers struggle to save enough for a traditional down payment. But here’s some good news: you may not need to put down 20% to buy a home. Let’s explore some other options that may help you buy, even if you don’t have a hefty chunk of money in the bank.

It is important to keep in mind that a down payment is just one piece of the home purchasing puzzle. You will also need cash on hand for closing costs, home inspections, appraisals, and other expenses that pop up. But these financial hurdles don’t have to stop you! You’ll likely still need a bit of savings, but programs exist to help responsible buyers with limited funds – especially when it comes to the down payment.

Explore Low Down Payment Mortgage Options

Conventional 97 mortgages allow down payments as low as 3%. You will need to pay private mortgage insurance to protect the lender, but this additional monthly fee has a tradeoff because you only need to tie up a fraction of your savings for the down payment. This leaves more cash free for closing, moving, and other unexpected costs. Of course, you will want to carefully compare interest rates and terms to find the best Conventional 97 loan that works for you.

The Federal Housing Administration secures FHA loans, so they represent less risk for lenders. They require only 3.5% down for credit scores starting at 580. FHA loans also offer competitive interest rates and low mortgage insurance. First-time homebuyers often choose FHA loans because they offer affordable home financing. Again, though, make sure to shop around to get the best deal.

If you are a military service-member or veteran, you may be eligible for a VA loan with zero down payment! These special mortgages are guaranteed by the Department of Veterans Affairs. Qualified veterans and active duty personnel pay no down payment or monthly mortgage insurance. A VA loan can only be used on your primary residence, and they do have loan limits based on local home prices. But they provide an incredible opportunity for the heroes who serve our country to find a place to hang their uniform!

Tap into Down Payment Assistance Programs

At one time, a 20% down payment was the gold standard for securing a mortgage. But today’s market offers more flexibility. If you save a bit of money regularly and diligently, you’ll soon have enough for a small down payment; and as we have seen in this article, there are other ways to fill the remaining gap or even eliminate a down payment entirely. So don't let down payment fears deter you from making your Des Moines homeownership dreams come true!

If you’d like to get preapproved for a mortgage, so you know what your options are, please reach out to us. We’re always happy to help.

Are You in the Right Financial Position to Buy a Chicago Home?

Tue, 28 Apr 2026 07:26:00 -0500

If you’re planning on buying a Chicago home, the sooner you begin preparing, the better. The better prepared you are, the smoother the process will go. Buying a home is a major financial decision, but there’s much more to it than the price of the house you choose. We’ve put together a list of the other costs you may be expected to cover:

Agent Fee

It’s no surprise that Realtors work on commission, and if you use one, they will let you know up front what their fee is. It’s usually based on the price of the home you buy.

Loan Origination Fee

If you’re using a mortgage loan to pay for the property, then you’ll also be responsible for paying a fee to your lender to cover their costs. The amount will usually be dependent on both the lender you use and the amount of your loan. Like Realtors, lenders will tell you their fee up front.

Good Faith Deposit

This is a security deposit that demonstrates your intent to purchase the house and is applied to your down payment. It’s held in escrow by the title company until the transaction is complete. The check won’t be cashed right away, so you’ll want to prepare your finances accordingly, and keep in mind that it will be deposited at the close of the transaction.

Down Payment

This may be the most familiar of all the costs associated with homebuying. It will depend on several factors, including the home you purchase the home’s location, and the loan option you select. Keep in mind that some of the lower down-payment options require mortgage insurance, which could impact your monthly payments.

Home Inspection

Some lenders require you to have a home inspection. Whether it’s a requirement for you or not, you should always have an inspection performed by an experienced professional when your offer is accepted. You’ll have options when scheduling an inspection, and some are more thorough than others. The more thorough the inspection, the more costly it will be. An in-depth inspection can save you from unexpected expenses later on, so consider it an investment in your future.

Closing Costs

The Closing costs will be disclosed early on in the buying process, and your lender will help you calculate them. This covers things like the lender fee (different from the origination fee), the appraisal fee, title or attorney fees, escrow fees, and prorated interest. It’s common for homebuyers to spend several thousand dollars on these, so you’ll want to learn about them very early on.

Insurance Fees

Requirements will differ depending on the home you buy, but you’ll want to consider title insurance, homeowners insurance, and maybe separate flood insurance. These aren’t large costs generally, but you’ll want to be aware of them in advance and factor them into your budget.

Taxes

Property tax can be one of the more considerable expenses that comes with homeownership. They can also adjust over time, with things like renovations causing them to increase.

This checklist will give you a better idea of what to expect when you buy a home. If you prepare in advance, you’ll avoid any surprises and be in better control of your finances.

If you’d like a recommendation for a seasoned, local Realtor, or if you need to get preapproved for a mortgage, please reach out to us. We’re always happy to help.

How Will You Know When it's Time for a Bigger St. Louis Home?

Tue, 28 Apr 2026 07:13:00 -0500

Maybe the family is growing or perhaps the house is just beginning to feel a bit small. Whatever the case, many of us eventually need more space. If you think it may be time to graduate to a larger St. Louis home, here are a few things to consider:

What’s Your Five-Year Plan?

Do you anticipate the family unit expanding in the next 5 years? And if so, are there enough rooms to accommodate everyone comfortably? A growing family is among the main reasons people choose to move into a larger home. Alternatively, it might feel that the house is full of your teenagers’ things, and that can make the space seem smaller. But if that’s the case, it may not be wisest to elect for more space when they might be in college or out on their own soon. Assess the future before making any decisions.

What Do You Love About Your Current Home?

Apart from it feeling a bit too small, think about the things you love about your current house. If it’s in the perfect location or has charm that will be tough to replicate elsewhere, you may want to pause and reflect. That’s not saying you shouldn’t move; it’s just worth factoring an upgrade in size against the uniqueness you really love about your house. Conversely, if there are some things in the current house that don’t work for you — maybe the layout isn’t optimal, or the commute to work is longer than you’d like — those might be enough to tip the scale.

Do You Really Need a Bigger House?

When most people consider moving into a larger home, they’ll tell you that they need more space. And if you’re trying to accommodate a growing family, that’s a valid concern. If it you just can’t find a place to store everything, you may be able to remedy that without having to move. Determine if you truly need more square footage, or if you just need to figure out how to maximize your storage.

What’s Going to Change?

A larger home brings with it more maintenance requirements. The amount of time you spend week-to week on things like vacuuming, dusting, and yard work, may increase considerably. You might also find that your expenses, like heating and cooling for instance, go up. If you truly need more space, then that’s a trade-off that can be managed. It’s important to consider all of the implications in advance.

It’s important to weigh several factors before making the jump to a bigger house. You may need that extra space, and you may just need to make a few adjustments to be comfortable in your current place.

If you’d like to get pre-approved for a mortgage, you can do that here. We would also be happy to recommend some experienced, local Realtors to help you in the homebuying process. Just reach out to us — you can find all of our contact information at https://www.frontierhomemortgage.com/contact-us/

How Many Homes Should You See Before You Buy in Des Moines?

Sun, 12 Apr 2026 05:55:00 -0500

Des Moines is one of the most vibrant and exciting cities in the Midwest, boasting a wealth of amenities and opportunities for its residents. With its thriving arts and culture scene and its diverse population, there is always something new to discover. One of the city's most attractive features is its highly affordable housing market, making it an ideal location for those seeking to buy a home without breaking the bank.

If you're looking for a new home in Des Moines, you might be wondering how many homes you should look at before making your final decision. While there's no hard and fast rule when it comes to homebuying, there are several factors that can help you make a more informed decision. For example, you should consider the location of the property, the size of the home and the lot, the overall condition of the house, and the price. By weighing these factors, you can narrow down the choices on your list and be able to focus on learning more about the homes that meet your needs and match your lifestyle.

When it comes to location, Des Moines offers a range of neighborhoods to choose from, each with its own unique character and charm. Some areas are more urban and densely populated, while others offer a more suburban or rural feel. Depending on your preferences, you may want to explore several different neighborhoods to get a sense of which one feels like the best fit for you and your family.

Another very important thing to consider is the size of the home and the lot. If you have a large family or plan to entertain frequently, you'll want to look for a home with plenty of space to accommodate your needs. Similarly, if you enjoy spending time outdoors or have pets that need room to run around, you'll want to consider a property with a spacious yard or nearby green space.

Of course, the condition of the house is also an important consideration. When viewing potential properties, take note of any repairs or upgrades that may be needed, as these can add to the overall cost of the home. If you're not handy with tools or don't want to take on major renovations, you may want to look for a home that is move-in ready.

Finally, price is perhaps the most important factor to consider when purchasing a home in Des Moines. While the city's housing market is generally more affordable than many other urban areas, prices can still vary widely depending on location, size, and other factors. Be sure to set a budget and stick to it, and don't be afraid to negotiate with sellers to get the best possible price for your new home.

Des Moines is an excellent place to buy a home, with its affordable housing market and rich cultural offerings. When searching for your dream home, be sure to consider factors such as location, size, condition, and price to help you make the best possible decision. Just a little research and patience will help you narrow down the choices in the seemingly endless possibilities, so that you can find the perfect home in this dynamic and welcoming city!

If you’d like some recommendations for experienced, local Realtors, or if you need to get pre-approved for a mortgage, please reach out to us; we’re always happy to help.

What are Mortgage Points and How Can They Help Chicago Homebuyers?

Sun, 12 Apr 2026 05:50:00 -0500

As a prospective homebuyer in the city of Chicago, understanding the intricacies of mortgage financing is crucial before embarking on your homeownership journey. One aspect that often comes up in mortgage discussions is "mortgage points." Let's dive into a quick overview on this topic and get some information that will help you navigate the complexities of mortgage points – potentially saving you thousands of dollars in the long run.

What are Mortgage Points?

When discussing mortgage loans, "points" refer to a one-time fee paid at closing to the lender in exchange for a lower interest rate on the loan. Each point typically costs 1% of the loan amount, and they can either be paid upfront or rolled into the mortgage. By paying points, you can reduce the interest rate over the life of the loan, resulting in lower monthly payments. It's important to evaluate whether paying points aligns with your financial goals, as the upfront cost of points can significantly impact your closing costs.

Two Kinds of Mortgage Points

There are two kinds of mortgage points. One is referred to as "discount points," and the other is called "origination points." Discount points will let you "buy down" your interest rate, whereas origination points are fees charged by the lender for originating the loan. Discount points directly affect your interest rate, while origination points cover the lender's administrative costs. It's essential to carefully review the loan estimate and understand which points are being offered to determine their impact on your overall loan terms.

Weighing the Pros and Cons

Deciding whether or not to pay mortgage points depends on various factors, including how long you plan to stay in your home and your financial situation. If you plan to live in the home for an extended period, paying points could be beneficial as you'll have more time to recoup the upfront cost through lower monthly payments. However, if you anticipate selling the property within a few years, it may not be cost-effective to pay points. Of course, your current financial situation also factors into this decision; if you have limited upfront funds, paying points might not be feasible.

Calculating the Break-Even Point

To determine whether paying mortgage points makes financial sense for you, it's crucial to calculate the break-even point. This is the point at which the monthly savings from the lower interest rate surpass the upfront cost of the points. You can divide the cost of the mortgage points by the monthly savings to find out how many months it will take to recoup the upfront expense. If you plan to stay in the home beyond the break-even point, paying points can be financially advantageous.

When searching for the right mortgage in Chicago, it's important to educate yourself about mortgage points so that you can make informed decisions. By understanding the different types of points, weighing the pros and cons, and calculating the break-even point, you can navigate the mortgage landscape more confidently. Of course, every homebuyer's situation is unique, so be sure to consult with a qualified mortgage professional to evaluate your options thoroughly and help you choose the mortgage that best fits your needs and ensures a successful homeownership journey!

If you’d like to talk more about mortgage points, or if there’s anything else we can be of assistance with, please reach out to us. We’re always happy to help.

Are you Considering an Addition for your St. Louis Home?

Sun, 12 Apr 2026 05:39:00 -0500

Maybe your family is growing and your home is starting to feel a bit too small, or maybe you need an actual home office. Whatever the reason, many St. Louis homeowners may be considering an addition to their home. Before diving into the specifics of finding the right contractor and thinking about design, it's important to take the time to consider if an addition is the best move. Here are a few areas worth thinking about:

Finances

Any major change in your home should probably start with consideration of your budget. First, you want to look at your own finances and determine what your budget is, leaving some wiggle room for unexpected expenses. From there, you may want to reach out and get a few estimates to see if that budget will support the addition you’re envisioning. While sometimes an addition can be a better option than moving, other times it may make more sense to simply move to a bigger home. This is why getting clear on finances is key.

Options

What are your options when it comes to putting on an addition? Homeowners need to investigate the legal requirements around if they’re able to build at all and which permits they may need. You certainly don’t want to take any shortcuts here, so getting all of these details early on is key. Perhaps you find out there’s a path to your dream addition, or maybe you find out that you’re not able to build out in the way that you wanted. Either way, it’s worth getting this information early on to keep yourself on track.

Vision for Future

While no one can predict what will happen down the line, it’s still valuable to think about your vision for the future and how that aligns with your plans for an addition. You might think about the immediate future, and if having construction in that area of your home would work for you and your family. And then you’ll also want to think longer term. Are you putting on an addition to address a temporary space problem? Often, homeowners can find more strategic, less expensive ways to address temporary space challenges. Do you anticipate needing this space for the years to come? Putting on an addition is an investment, so it’s important to think about how much value it will provide you now and in the future.

Property Value

How would an addition impact your property value? This is another important area homeowners will want to look into before building. If an addition adds value, it could be a smart investment that also gives you the space you need. Reach out to some professionals to help you assess.

Have you considered an addition? What stage of the process are you in? Or have you already built an addition? We’d love to hear your thoughts.

Should You Buy a Des Moines House at Auction?

Sun, 22 Mar 2026 07:35:00 -0500

I’m going to approach this a little backwards, because the answer is (a qualified) ‘yes’. So instead of starting off by telling you why it’s a good idea, I’m going to highlight some of the pitfalls and reasons it might not be. Then we can talk about the positives, once you have a better idea of the risks.

You May Not Know What You’re Getting

If a property has made it to auction, then the odds are good that the owner is having some sort of financial difficulty. If that’s true, then it’s easy to imagine that the property may not be up to date from a maintenance perspective. In some cases, there may be years of missing maintenance. Less explicably — but certainly true, as we all know from reading the papers — the owners may have completely trashed the property.

During a traditional property purchase, these sorts of risks are mitigated by the home inspection process; however, not all auctions allow for an inspection. In fact, not all auctions even allow you to enter the house — you may have to be satisfied with a drive by of the exterior.

Beyond the physical property, there may be external obligations attached. The property may be auctioned off by the primary lien holder (usually either the first mortgage or a tax agency), but that doesn’t mean there aren’t subordinate debts against the property. Everything from second mortgages to liens from contractors could be out there. You’ll need to work with the auction house and a title company to make sure you have a clean title in the event that you do win the auction.

Legal Issues

Above and beyond the property and any debts associated with it, you’ll need to deal with occupancy. Although it’s not terribly common, it certainly happens that properties are auctioned, and the owners are still occupying (or even that squatters have settled there). Rules for eviction vary dramatically from state to state, and to a lesser degree even from county to county. It’s entirely possible to get caught up in a lengthy and expensive eviction process.

Cash Requirements

When buying a property through traditional channels, you normally have financing set up in advance, and in today’s climate you probably only need to make a minimal down payment. In the case of auctions, that’s not the norm.

Each auction house has different rules — and even at the same auction house, the rules can vary by property. Typically, you’ll need to bring a cashiers check for the minimum bid, which usually amounts to the fee to the auction house plus an equivalent amount to the earnest money you’d put down in a traditional transaction. But there are no hard and fast rules, and the amount of cash you may need to bring can be substantially higher than what you’d need in a traditional sale.

You Might Not Win If You Win

Generally speaking, there are two kinds of auctions: lender-confirmation auctions and absolute auctions. An absolute auction is exactly what the name implies — the winning bid gets the property. These are the norm in tax lien situations. However, in bank foreclosures, you don’t always get an absolute auction. In a lender-confirmation the lender doesn’t have to accept your offer, even if you’re the highest bidder. Now, to be honest, in most cases they will. That said, a fairly common technique is to set a low minimum price, in order to encourage bidding, but to have a separate, minimum reserve price that is secret and must be met for the property to sell. This is far more likely than the bank making some arbitrary decision.

It can be very frustrating to go through the time and expense of doing title searches, getting cashier’s checks, getting home inspections (if allowed), winning the bid (maybe at a higher price than you really wanted), and then having the deal fall through. It can be a serious emotional blow.

It Still Might be A Good Idea

All of those risks notwithstanding, an auction is still one of the best ways to get a good deal on a property. You have to look at is from a risk/reward perspective. Buying a property the traditional way is the least risky, but also the least likely to generate immediate profit. As an in-between point on the risk/reward scale, buying a property from an owner who is in jeopardy of going into foreclosure is a great place to look. You can often negotiate with the banks, secure more traditional financing, and certainly go through the normal home inspection process. But when it comes to getting the truly great deal, auctions are the way to go. The lien holder (whether a bank or tax authority) is seriously motivated to get out. Not only are they not looking to make a profit, in many cases, they’re not even legally allowed to do so (any profit above outstanding debts would then go to the original homeowner).

My strong recommendation is this: if you’re serious about being a real estate investor, you need to be involved in the auction game; but you shouldn’t do so until you’re already an experienced investor. After you’ve bought a handful of properties on the market, you’ll have a very good idea of the costs associated with managing those purchases (whether it’s fixing them up to flip them, or turning them into rental properties). You’ll also have a much better understanding of the local market. Then, when you have a strong idea of what you’re doing, it’s time to go to an auction.

If you’d like to talk more about buying a house at auction, or if there’s something else we can help you with, please reach out. We’re always happy to help.

How Many Chicago Homes Should You See Before Making a Decision to Buy?

Sun, 22 Mar 2026 07:29:00 -0500

Chicago is one of the most vibrant and exciting cities in the entire country, boasting a wealth of amenities and opportunities for its residents. With its thriving arts and culture scene and its diverse population, there is always something new to discover.

If you're looking for a new home in Chicago, you might be wondering how many homes you should look at before making your final decision. While there's no hard and fast rule when it comes to homebuying, there are several factors that can help you make a more informed decision. For example, you should consider the location of the property, the size of the home and the lot, the overall condition of the house, and the price. By weighing these factors, you can narrow down the choices on your list and be able to focus on learning more about the homes that meet your needs and match your lifestyle.

When it comes to location, Chicago offers a range of neighborhoods to choose from, each with its own unique character and charm. Some areas are more urban and densely populated, while others offer a more suburban or rural feel. Depending on your preferences, you may want to explore several different neighborhoods to get a sense of which one feels like the best fit for you and your family.

Finally, price is perhaps the most important factor to consider when purchasing a home in Chicago. Prices can vary widely depending on location, size, and other factors. Be sure to set a budget and stick to it, and don't be afraid to negotiate with sellers to get the best possible price for your new home.

Chicago is an excellent place to buy a home, with its rich cultural offerings. When searching for your dream home, be sure to consider factors such as location, size, condition, and price to help you make the best possible decision. Just a little research and patience will help you narrow down the choices in the seemingly endless possibilities, so that you can find the perfect home in this dynamic and welcoming city!

If you’d like some recommendations for experienced, local Realtors, or if you need to get pre-approved for a mortgage, please reach out to us; we’re always happy to help.