From researching neighborhoods all the way to closing, I can guide you every step of the way — and that includes sharing tips on things to consider as you shop for the right mortgage loan.
Mortgage Information for St. Louis Area Home Buyers
Your home is a significant investment and your mortgage should align to the needs of your family for the years to come. We highlight a few ideas to consider as you shop for the best loan for your needs. Keep in mind, these are just suggestions and speaking with a mortgage professional is imperative to get a clear picture of mortgage loan options, down payments and more.
Use a mortgage calculator to find out how much you can afford. Click below to get started:
Tips for Getting a Mortgage
Know Your Credit Score
Your credit score directly impacts what loan products and interest rates are available to you. You should know your credit score before you begin the process of getting a loan. Checking your credit score frequently can alert you to problems that can be corrected or improved before applying for a loan. You can request a copy of your score through one of the three major credit bureaus: Equifax®, Experian® or TransUnion®.
Budget & Save for Down Payment
There are quite a few costs involved in making a purchase this large. However, the largest will undoubtedly be your down payment. The larger your down payment, the better off you'll be. Weigh expenses v. income and cut costs where necessary to afford the down payment that your new home will require.
Consider Additional Expenses
While the down payment is a large part of the purchase, that's not the only cost to consider. Throughout the process you'll have to pay fees tot eh lender, title company and more. Take these and other expenses into account when choosing a lender, a title company and other professional that you work with.
This is the best advice you can get about mortgages, because not all lenders are created equal. Some will offer you different products, different rates and even different service. When it comes to a lender, you want someone that's going to talk through all the options with you and be transparent throughout the process.
Consider your Repayment Term
Most mortgages are set at intervals of 15, 20, 25 and 30 years. The repayment term you choose will affect how fast you pay off the loan, how quickly you accrue equity, the size of your monthly payment and other factors.
Get Pre-Approved BEFORE Your home Search
While it's completely possible to start the lending process after you've written an offer, an offer without a pre-approval is not as strong as one with it. The pre-approval shows that you have the means to purchase a home up to a certain amount. While this isn't the final approval, it will make your offer more attractive than those without pre-approval.
Navigate Underwriting Carefully
Underwriting is the process the lender goes through to provide you with final loan approval. During underwriting, the lender may need bank statements, signed affidavits and other things to provide approval. As the buyer, it's important to comply with your lender's requests in a timely fashion. Also, refrain from making large purchases, paying off debt ahead of schedule, changing banks and more until after the transaction has closed.
Types of Mortgages
Here are a few of the most often-used mortgage products that help people purcahse homes in the St. Louis area. Be sure to discuss your options with a qualified mortgage lender.
Conventional loans are the most popular mortgage product that are used to purchase a home. Conventional loans can be fixed-rate or adjustable-rate and they're insured with private mortgage insurance (PMI) that is factored into the monthly mortgage payment. You can request removal of PMI from your loan once you reach 20% equity.Conventional Loan Info
FHA loans are mortgages that are insured by the federal government. FHA loans allow buyers to purchase homes with as little as 3.5% down. However, the buyer pays Mortgage Insurance Premium (MIP) that never goes away.FHA Loan Info
A VA Loan is guaranteed by the Department of Veterans Affairs that provides eligible past and current members of our armed forces to purchase homes with as little as $0 down.VA Loan Info Guide
A USDA loan is a $0 down mortgage option that is insured by the United States Department of Agriculture. The goal of the USDA Loan is to facilitate home ownership in rural communities. The catch is that USDA home loans are only available to buyers in certain geographical locations.USDA Loan Info