Buying and moving into a new home is one of life’s great experiences, especially if you’re buying your first home. From getting that pre-approval to the “yes!” response on an offer to closing and moving in, every step is exciting. And while the process is engaging and fun, it’s important to prepare for moving day […]
How to Understand St. Louis Mortgage Rates
St. Louis mortgage rates are at historical lows, creating the perfect storm for the housing market. In order to take advantage of these circumstances, future homebuyers need to know what will impact their rates. Many aspects of the purchasing process influence how each attribute of a mortgage is calculated. External and internal forces can determine how much a customer will spend and what loan program they will inevitability choose. The following are principal factors that will affect your financing path and tips to make the journey easier.
Credit Scores Matter
Without the proper paperwork, the mortgage banker cannot accurately quote a rate or suggest a specific type of loan. Credit scores have substantial control over pricing adjustments for the borrower. Having good credit can ease price negotiations. If you are applying for financing individually, your middle credit score will be taken into consideration. If you are applying jointly with an additional borrower, the lowest of your middle scores will be taken. Taking care of all outstanding debt before attempting to buy a home will make loan procurement smoother.
Understanding Price Adjustments
Everyone does not necessarily receive similar quotes for the same loan program. There are different assessments of risks associated with each individual borrower. Each buyer has a unique financial situation and the result of their position is reflected through St. Louis mortgage rates. Credit scores, down payment amount and lending history are just some of the challenges buyers will face when trying to finance a home.
Many people believe the Federal Reserve controls interest rates. While this is not completely true, they still have some power over the industry. The demand from households and businesses for borrowing money has been below-average because of the weakened economy. Since investors believe mortgage-backed securities are safe, mortgage rates will stay low for the time being.
Choosing a Trustworthy Lender
Choosing the right mortgage professional to help you is key. Investments involve a significant amount of research on the part of the borrower. When you are reviewing St. Louis mortgage rates, ask your trusted professional which loan programs will create the best advantage for you. Allow your lender to review all supporting documentation so they may assist you to the best of their abilities during the quoting process. They should offer distinctive options for you to choose from when locking your rate.
Securing Your Rate
A rate lock is a guarantee given to a customer by a lender. It protects the borrower from interest fluctuations for an indicated period of time. Most will offer a standard lock of 30 days. The customer’s goal is to hold their number long enough to complete their loan. There are different lock-periods available in the market each day. Rates change on a daily basis. If you have already locked in a rate, you may not be able to attain a new lower rate, without paying a hefty fee.
For more information on St. Louis mortgage rates, contact Cornerstone Mortgage, Inc. We are always here to assist you with all of your home loan needs. Call us toll-free today at: 800-965-9910 or apply online.The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.