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St. Louis home loans are available in a wide range of options.  Interest rates are at historic lows and home prices have become more reasonable. Buyers should not be intimidated or discouraged by the mortgage process. Now is the time to take advantage of market conditions and purchase a great home. If you are ready to take the plunge into homeownership, the information below can be very beneficial.

Consider the whole package.

Before buyers try to acquire financing, they should create a budget that displays all living expenses, income and debt obligations. This is one of the most vital steps because it determines how much the buyer can realistically afford to spend each month. Your loan must accommodate your individual financial situation. Lenders will analyze your debt-to-income ratio during your approval process. They will look at your ability to pay your mortgage as well as other monthly expenditures. If you prefer to know the size of your payment before meeting with a professional, using an online mortgage calculator can be helpful. The calculations will not be exact because every lender has different fees, but it will give you a rough estimate of your payment size.

Structure is critical.

Taking out a St. Louis home loan can greatly affect your family’s finances. Buyers will need to put together a wish list. Necessities and wants should be included. After you’ve created your list, each item needs to be ranked from most to least important. This will allow buyers to realize the most vital aspects of the house and which elements can be comprised or eliminated. Lenders can also help you get preapproved before you go house-hunting. Preapproval is not a requirement to purchase a home. It does, however, show sellers that you are taking initiative and provides negotiating power when it comes time to make an offer. This step allows buyers to know their price range and narrow down their choices.

Select a mortgage rate.

When looking at St. Louis home loans, buyers will need to know the difference between the types of interest rates. This should help borrowers decide which kind of program is most conducive to their budget and lifestyle. There are two varieties available to homebuyers. Many financing programs, such as FHA loans, have both options.

Fixed-rate mortgage:

  • Interest rate will stay the same throughout the entire term.
  • Monthly payments are predictable.
  • Typically 15-year or 30-year term options.
  • Excellent for people who plan to stay in their home for a long time.

Adjustable-rate mortgage:

  • Interest rate is fixed for the introductory period.
  • Once the initial period has expired, the rate will adjust periodically in accordance with current market index.
  • Monthly payments can fluctuate and increase over time.
  • Smart choice for people who move often because of personal or professional obligations.

Find the right lender.

One of the best ways to find a lender is by word of mouth. Recommendations often come from family or friends who have worked with a lending company. It’s a good idea to speak with people who have previously worked with the companies you are considering. They will be able to give insight about their process and personal experience. Buyers can also look to the internet for guidance. and data on potential lenders. Borrowers can find company data and customer reviews of potential lenders.  The main objective is to find an experienced professional who is trustworthy and communicates well. Your lender should keep you informed through every step of your loan.

For more information on St. Louis home loans, submit a contact form today. Cornerstone’s goal is to provide superior customer service at a fair price. They will be happy to assist you through your home financing process.

 

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