Finding the right kind of mortgage that works for you is one of the earliest and most important parts of the home buying process. Before you find the home of your dreams, you need to figure out the best way to pay for it. Conventional loans and Federal Housing Administration (FHA) loans are both common options, especially for first-time homebuyers. How do you decide which loan makes the most sense for you? Get started by understanding the differences between them so you can make the best choice for your financial future.
Both conventional and FHA loans require reasonable loan down payments: a minimum of 3 and 3.5 percent of the final purchase price respectively. They’re both good options if you’re a little short on cash but still looking to make a deal in the near future.
While conventional loans typically require a minimum credit score of 620, FHA loans only require a minimum credit score of 500. This is helpful for first-time homebuyers that might have not had as much time to establish a solid credit rating. FHA loans also have a shorter timeframe for approval following credit problems such as foreclosures or bankruptcy.
Unlike conventional loans, FHA loans are assumable. That means that the interest rate and mortgage balance can be taken on by future homebuyers. This can help make your home more appealing to interested parties.
FHA loans are eligible for “streamline refinancing,” which is a low-cost, quick way to refinance a mortgage when interest rates are lower. This type of flexibility can help you take advantage of significant changes in the housing market that conventional loans might suffer from.
When you make a downpayment of at least 20 percent on a conventional loan, paying for mortgage insurance isn’t necessary. But you’ll need mortgage insurance on an FHA loan, regardless of the size of your down payment. This can mean additional costs in the form of up-front and monthly premiums.
The size of FHA loans is more regulated and can change from location to location. Generally, the maximum amount for an FHA loan is $625,000. If you’re purchasing something like an investment property and need something larger, conventional loans should do the trick.
As you can see, there are many reasons to pick either conventional or FHA loans. If you’re still struggling to decide, the consultants at Liberty Lending will assess your financial situation and help you choose the best loan for you. Whatever your circumstance, we’ll work to get you into the home of your dreams. Want some more information? Fill out our form or give us a call at 314-336-9111.
Before making any major decision in life, it’s important to understand the rules that go along with it. Refinancing is no different. But sometimes, knowing which rules you don’t really need to follow can help you have the best results. So forget what you’ve been told: here are the rules you can break when refinancing your mortgage.
(Don’t) Save at Least 1%
You don’t need to save at least 1% on your interest rate for refinancing to be worth it. Lowering that percentage even just a little bit will help put money back in your pocket. It all depends on what your numbers sit at before refinancing. To make sure you at least break even, divide your total monthly savings by your total closing cost amount. Check the math with your own numbers to decide whether or not what you’ll be saving is worth it for you.
It’s (Not) Only For 30-Year Homeowners
Just because you’re not in it for the long haul doesn’t mean refinancing won’t work for you. What really matters is how your numbers stack up. You’ll be able to figure out exactly what you’re saving when you figure out your closing costs. From there, it’s pretty easy to determine if this is the right time to refinance.
Stick With Who You (Don’t) Know
Refinancing is a decision you shouldn’t take lightly, so make sure to keep an open mind when exploring your options. Just because you got a good deal with a lender the first time around doesn’t mean you can’t find something that better fits your needs in the present.
When it comes to refinancing, there’s ultimately one rule that you should follow: do what works the best for you. At Liberty Lending Consultants, we’re experts in helping you determine not just every option, but which option is going to make the best use of your money. Ready to get started on refinancing? Fill out our form or call (314) 336-9111 today.
Those who have made the ultimate sacrifice for our country deserve the opportunity to live in a home they’ve always dreamed of. That’s why we’re committed to providing competitive VA loans to veterans. The best part? It’s typically easier to qualify for VA loans than conventional mortgages, and with help from our expert loan consultants, we’ll make the process even easier. If you’re interested in a VA Loan in the St. Louis area, just check out the four-step process below.
1. Pre-qualification and Pre-approval
Getting prequalified and approved is a simple but incredibly important step in the process. Pre-approval typically involves providing and verifying information that you already have, such as your home buying intentions, income stability, and tax records. Don’t worry – even if you don’t get prequalified and approved, you can still make an offer and sign a contract on a home.
2. The Contract
Once you’re prequalified and approved, you can start the part you’ve been waiting for – looking at houses. After pre-qualification you’ll have a better idea of an affordable monthly payment, allowing you to look at properties that best fit your budget. After finding the home you want, work with your real estate agent to draw up a contract that takes full advantage of your VA loan benefits, including having the seller pay for mortgage related closing costs.
Now that you’ve got your contract figured out, we’ll work on the appraisal process. Although appraisal isn’t the exact same thing as a home inspection, it’s pretty close. We’ll take a look at the home you’re interested in to check the condition and determine if the price is comparable to the market. That way you can talk with the seller to either lower your purchase price or have those repairs completed.
4. Close It
Now this is the step you’ve been waiting for. Once we’ve completed everything else, you’ll finally have the chance to close the purchase of your new home. After a final walkthrough and verification of some financial documents, you’ll be ready to start the hardest, but most rewarding part of all – moving in.
If you’re a veteran looking for a home in the St. Louis area, Liberty Lending can be a priceless partner during every step of the VA loan process. If you want more information on getting a VA loan in St. Louis? Fill out our form or give us a call at 314-336-9111.
At Liberty Lending Consultants, we offer FHA loans with competitive rates. Unless you have a background in finance, banking, or lending, you may not know exactly what FHA loans are. There are many types of loans with specifications that appeal to different borrowers.
FHA stands for Federal Housing Administration. The FHA is a governmental agency that facilitates financial support within the mortgage market, as well as improve housing standards and conditions. If the borrower for some reason is not able to pay back the loan and defaults on the mortgage, the Federal Housing Administration will protect the lender from some of the financial damage. This way lenders are able to give out loans to those who may not have qualified normally. FHA loans provide more access to housing to a wider population of people. These loans were designed in 1934 to help stimulate the housing industry.
FHA loans are beneficial to a number of people. First-time homeowners are a primary target for these loans because oftentimes they are young couples that haven’t saved up enough for down payments or established a good credit score yet. Borrowers are allowed to have credit scores as low as 500 depending on the specific loan. People who have suffered from financial issues in the past often take advantage of FHA loans as well. While each person is evaluated on a case by case basis, many people who have suffered a foreclosure, bankruptcy or a major hit on their credit score are still able to receive an FHA loan. Basically, just about any reliable borrower, seriously looking to enter the housing market is a good candidate because FHA loans are there to help and support.
Liberty Lending is proud to be an FHA loan lender in St. Louis, Missouri because we know that past mistakes or just lack of experience should not automatically disqualify people from housing. While the specific benefits and rates vary from lender to lender, we do our best to stay competitive. Some benefits of getting an FHA loan with us include getting to have a cosigner, 3.5% down, fixed rates for either 30 or 15 years, and the closing costs getting included in the loan amount potentially. To find out more, contact us here.
When you are buying your first home, there are certain things that you will need your mortgage lender to offer. First time buyers often need more assistance than those who are already on the property ladder. The following tips can help you find a mortgage lender that will be able to meet all your needs as a first time buyer.
1. Review Your Credit History And Score
Your credit score and history are really important pieces of information that St. Louis mortgage companies will use in assessing your application. It is a good idea to review these before you make your application so that you can see what the lender will see when they are looking at your application.
One of the most important things to check is your debt-to-income ratio. This will play a large part in determining how much lenders are prepared to let you borrow. Just because you could be offered a certain figure, this doesn’t mean that it would be affordable and so this is something to think about.
If your credit score is lower than you would like, then there are things you can do to improve it, so don’t panic too much.
2. Ask About Programs For First Time Buyers
Some lenders will work with state agencies to offer programs that can help first time buyers. You may be offered a discount on the rate or assistance with the down payment. They may be available to you if you are a veteran or public servant, or if you have student loans.
The programs are often marketed by state agencies for housing and finance, but this doesn’t mean that you won’t be able to use the services of St. Louis mortgage companies. Many of these loans are actually managed by just this type of company.
3. Choose A Lender That Offers Government Backed Home Loans
You may also find that you qualify for a program that is offered by the government. Depending on your circumstances you could receive a loan from the Department of Veteran Affairs, the Federal Housing Administration or the Department of Agriculture. The requirements to qualify for one of these loans are often relaxed, so it is more likely that you will be accepted.
VA and USDA loans often do not require you to make a down payment. You will have to make a 3.5% deposit with a FHA loan, but this is lower than you would get with other lenders. All three of these loans will also have a lower minimum credit score that is needed to be accepted. The downside is that the total amount you can borrow also tends to be less than other lenders. Your monthly payment is also likely to include mortgage insurance and this can make it higher.
4. Compare Interest Rates And Other Financial Details
There are many rate comparison tools that you can use to see what rates different St. Louis mortgage companies are offering. While looking at APR can be a useful basis for comparison, it is not all that you need to think about.
Most mortgages will come with fees for various aspects of the application, and these should also be compared. These can vary quite considerably between lenders and so you should always ask for a full list of all their costs. If they try to explain it to you verbally, then you can always ask for the information in writing. This is often the best option because it ensures that nothing is forgotten about.
If you feel as a lender is trying to push you into a decision, then this should be a warning sign. You need to be given enough time and space to think everything through, and a good lender will respect this.
5. Get Pre-approved Before You Start Looking For Houses
Lenders will often give you pre-approval which means they will give you a figure that they will be prepared to lend you. It is a good idea to have this in place before you start looking for a property so that you know what your budget is. You will also get some idea of what your mortgage repayments will be.
You may be able to get pre-approval from lenders without having to visit their office as they will allow you to upload digital documents. However, others will want to meet you face to face. When you are choosing a lender you may want to take into account whether their criteria for pre-approval will work with your schedule.
If you have a low credit score, or your income is inconsistent, then this could be a barrier to you getting pre-approval. Many lenders can work around this though, so it is always worth asking if there is anything they can do to help.
Buying a home isn’t a solo endeavor. As much help is necessary at every step of the way, closing the deal on your dream house requires someone with a special skill set: a broker. Aside from the fact that it’s their job to help you get the best deal, brokers can offer much much more.
They’re paid to help you
Brokers don’t get paid until you close the deal on a house, so they’re just as incentivized to sign on the dotted line as much as you are. If they don’t make sure your closing process goes as smoothly as possible, they won’t make enough to buy a dream home of their own. So no matter what happens, remember they’re focused on making things happen for you.
They’ll get to know you, and more importantly, know what you want
Buying a home can be a long process and a broker is there every step of the way. That means they’ll spend a lot of time learning who you are as a person. When you’re making decisions this big, it’s important to work with someone who knows what you like and dislike.
They save, save, and save some more
Saving money is helpful, especially on a purchase this big. But brokers can save you a lot more than money. Since they handle every step of the process, they know how to save you time and energy. And those are the last things you want to waste when you’re getting ready to move into a new place.
They know their stuff
No one expects you to know everything about buying a house. But that’s exactly what a broker gets paid to do. They’re experienced in everything from examining your finances to the details of intricate contracts, so they’ll be a helpful resource throughout the entire process.
They’ll work as hard as you have
Brokers know that you’ve put a lot of time and effort into finding where you want to live, so they won’t take it easy, even when you’re close to the finish line. They’re prepared to do all the legwork – negotiating with loan managers, filling out stacks of paperwork, and paying attention to the smallest of details – so you don’t have to.
At Liberty Lending Consultants, we’ve got a staff full of brokers who are ready and able to help you achieve both your financial and home-ownership dreams. We’re prepared to work hard to get you the lowest rate possible and earn your trust. If you’re looking for more information, fill out our online form or call (314) 336-9111.
We at Liberty Lending Consultants have made it our mission to aide as many customers with their mortgages and enable them to achieve their financial goals and dreams, by helping them figure out the most cost-effective methods regarding their closing costs.
We provide St. Louis home loans and have been for the past several years – where we have helped thousands of customers achieve their financial dreams. Our main goal is to provide our customers with financial help regarding their commercial or residential lending needs. It does not matter what the interest rates are, we at Liberty Lending Consultants are St. Louis mortgage lenders and brokers that are here to get the rate you need. It is due to this unwavering commitment that we are often the choice for those who are seeking to buy their second home, investment or commercial property, or to help them close on a refinancing loan. There are several mortgage lenders located in St. Louis, and that is why we are so grateful that you have come to us.
Here at Liberty Lending, our number one goal is to help all of our mortgage customers save money by keeping their closing costs as low as possible while they are seeking their loan. It does no matter if you are trying to buy your first home, your second home, an investment property, or commercial property – we have a wide variety of loan options that are suitable for your every need.
Liberty Lending St. Louis home loans are the best option for you to go with because we do our very best to make the loan process as simple as it can be on your end. Our jobs are to do the heavy lifting regarding the whole process, so you can focus on the more important things – packing up to move, saving your money, or making plans for your home equity line of credit. We at Liberty Lending Consultants want to handle the difficult, more time-consuming aspects of the process to make it easier for you.
Liberty Lending an offer you a variety of loan types – VA, FHA, USDA, or conventional home loan – that best suit your desires and needs.
Your first goal with us should be to get pre-approved for the loan. This is especially critical if you want to successfully buy a home in today’s market. Luckily, our mortgage professionals are here to guide you through the entire process and can show you how simple and easy the entire process of getting the loan can be with the right help. This is where you want to start, because not only does it signal to the sellers that you are very serious about the home that you want to buy, but it also tells you how much money, down to the exact dollar, you are able to borrow. The more information you know, the better informed your decisions will be. Also, having all of this information readily available will also not only prepare you to make better decisions, but also give you more room to negotiate when it comes down to signing the contract for your new home. Once you have gotten to this step, that is where we at Liberty Lending will take over.
Our financial and lending professionals have won several awards for their dedicated service, so that is how you will know that we will do our very best to find you a loan that fits your needs. We know that there are several options available to you, no matter your budget, and so part of our services is that we will thoroughly research all of them, and then discuss them with you in great detail so you can make an informed decision. We will help you reach that decision as quickly, and with as much information as possible.
If you want to discuss any options you have regarding a commercial loan, cash-out home mortgage refinancing loan, or a second mortgage we at Liberty Lending have expert professionals who specialize in each area to give you the best possible advice.
15 Year and 30 Year Fixed Rate Mortgages
-Do not worry about your interest rate increasing over the years.
-Your monthly payments will stay exactly the same for the length of the loan.
-You will be protected from any “surprise” changes in your (monthly) mortgage payment.
-This is a great choice for people who are planning to stay in the same home for an extended time period.
-Your payments are low during the early years of your loan.
-This is a great option for anyone who plans to move within a few years.
-The initial interest rates are generally lower than anything you would get on a fixed-rate mortgage.
-There are interest caps placed on your interest rates so that your rates are limited in how much they can increase.
-The interest rate will change over time, based on the prime rate of the financial index.
-This is one of the most affordable home loans based in the St. Louis area.
-An amazing option for low-income home buyers.
-Down-payments on homes can be as low as 3.5%.
-There are no prepayment fees needed.
-Very popular with first-time homebuyers.
-We offer 100% full financing to those who qualify.
-These loans are guaranteed for (eligible) veterans, surviving spouses of veterans, and active duty personnel.
-Generally little to no down payment is required.
-Requirements regarding credit are a lot more lenient in general.
-If you want to learn more about the St. Louis loan process, please go to our online application and complete it. It is available 24 hours a day for your convenience.
Working with Loan Officers You Trust
We at Liberty Lending make it our mission to provide the best service we can to all of our customers.
Remember – we offer a wide range of services that include in-house underwriting, closing, and processing so that we are fully appraised of all of your mortgage needs.
We offer a great range of mortgage products and have been A+ accredited by the Better Business Bureau based on our customer experiences.
Come to us today for your St. Louis home loans. We are St. Louis mortgage lenders that are sure to get a quick pre-approval and an easy close.
Even if you’re ready to sign the papers and close the deal on your new dream home, it’s important to make sure one more thing gets done: the home inspection. Why get a home inspection BEFORE buying the home? While it might seem like overkill, getting a home inspection performed can help you avoid five pretty major mistakes moving forward.
1. Losing Leverage
The information you learn during a home inspection can help make sure that you have leverage when negotiating a deal moving forward. If you didn’t know that information before, it become more difficult to get the deal that you deserve.
2. Making Up Your Mind Too Fast
When you think you’ve found the perfect house, it’s easy to lose sight of some important details. A home inspection is a perfect chance to slow down and really make sure that you’re making the right decision. If your home inspection comes back with positive results, you can probably take that as a good sign that you are making the right choice.
3. Spending Too Much
Yes, moving into a new house is expensive. But it shouldn’t be more expensive than it has to be. When you spend a little bit in the present on a home inspection, you’re getting information that can help you save money on major repairs down the line.
4. Not Knowing What You’re Getting Into
When you’re looking at a new house, it’s pretty easy to see most of what you’re getting. That said, a home inspection can find everything that’s out of sight. Instead of not knowing exactly what you’re buying, a home inspection provides all of the necessary details.
5. Missing Things That Need Repair
When you move into a new home, you shouldn’t have to take care of problems that were the responsibility of the previous owner. Instead of haggling over who is responsible for fixing what, a home inspection is the most official way to determine what’s wrong and who is going to pay to fix it.
Want more information on home inspections and the home buying process? At Liberty Lending, we’ll prepare you for every step of the home buying process. Fill out our form or call today (314) 336-9111.
The post Why Inspect? Check These 5 Reasons and You’ll Come Correct! appeared first on LL.
If you’re a veteran, you’ve probably heard of VA loans. But do you know exactly what it takes to get one? And what the benefits are when you do? Here at Liberty Lending, we’ve got years of experience providing veterans in the St. Louis area with VA loans, so we know how to break it down. Here’s the formula for VA loans:
Service Record + Credit Score + Income Level = No Down Payment, 100% Financing and Great Fixed Rates
Let’s explore how everything comes together. First, this is what goes into a VA loan.
When applying for a VA loan, one of the first things you’ll need to provide is your proof of discharge. Your benefits might vary based on how many years you served and the rank that you achieved.
Next you’ll need to provide your credit score. To qualify for a VA loan, you’ll need to have a score of at least 620. Don’t worry if you’re not quite there – we’ll not only help you explore other options but give you tips on how to improve your score for the future.
Your income level will also help determine the exact terms of your loan. To prove your income, you’ll need to provide a W2 along with recent pay stubs.
Once you’ve got all of these things together, it’s time for the best part of a VA loan – the results.
No Down Payment
One of the best benefits of a VA loan is something it doesn’t require – a down payment. This makes it easier for veterans in almost any financial circumstance to finally move into the home of their dreams.
When you qualify for a VA loan, it’s the only loan that you’ll need. Not only does that make things less complicated, it most likely means that you’ll end up with a better overall deal.
Great Fixed Rates
One of the most important parts of any loan is your rate. VA loans are set up in a way that makes sure veterans have access to rates that won’t change over 10, 15, or 30 year periods. This helps with both long term budgeting and overall savings.
When it comes to VA loans, it might seem like there are a lot of moving parts. But when everything comes together, the sum is something that can benefit those who have made the sacrifice to serve our country. At Liberty Lending, we’ve always been committed to helping these courageous men and women in the St. Louis area get the best results from their loans. If you’re looking for more information, fill out our online form or call (314) 336-9111.
The post Need a VA Loan in St. Louis? It’s as easy as 1, 2, 3! appeared first on LL.
At Liberty Lending Consultants, our unrelenting commitment is to help as many mortgage customers as possible achieve their financial dreams while helping them save money on their closing costs. As a St. Louis mortgage broker who has helped thousands of consumers over the years, it is our unwavering mission to help provide a funding solution for all your residential or commercial lending needs. No matter what the current interest rates are, Liberty Lending Consultants will make sure you receive the mortgage rate you deserve. That’s why thousands of consumers in trust us when buying their first or second home, their commercial or investment property or when closing on a refinancing loan.