Top Things to Look for When Buying a Home

You’re ready to buy a home, but have you really checked out all of the important pieces? It’s a good idea for any homebuyer to consider potential problems they may run into as a homeowner. Before you make an offer on that cozy cottage or Victorian palace, make sure to check out these top things to look for when buying a home.

Location

The area surrounding your home can be just as important as the house itself. Take the time to get to know your surroundings. The neighborhood needs to meet your expectations. Drive around on weekdays, weekends, during the day and at night. You should feel comfortable in your environment. Talk with neighbors about crime, school districts, and the community. They will have a greater understanding of what it’s like to live in the area.

Curb Appeal

If you enjoy working in the yard in your spare time, a home with a space for gardening may be right for you. You may prefer a home with less maintenance on a smaller lot. You should always look at the exterior features. The exterior of a house can say a lot about how the interior has been taken care of by the previous owner. If the sidewalk or driveway is riddled with cracks or the landscape is very poor, you can generally expect the same upkeep inside.

Size and Floor Plan

Think about how the new space will be used.  A large home can provide extra space and storage, but will cost more to heat and cool. Smaller homes can be more energy efficient but may not have all the space you need. If you are looking to add on to your home or do renovations, it is wise to check the house’s zoning or area disclosure. If you have an idea in mind, mention it to the current owners. They may be able to give you some insight about any structural obstacles they have run into in the past.

Bedrooms and Bathrooms

Before searching for a home, decide how many bedrooms and bathrooms you need. After you’ve decided, only look at properties in your criteria. An extra bedroom is always favorable since it can be used as a home office or guest room. Bathroom remodels are the second most expensive renovation in a house. Check for leaks and cracks in the toilet, bathtub and sink. Carefully inspect the ceiling below the bathroom for damage as well.

Kitchen

Families spend more time in the kitchen than in almost any other room of a home. If your kitchen is the most important room in your home, don’t settle for one that won’t work for your lifestyle. With the average kitchen renovation costing $20,000, it can be the most costly room in a home to remodel. The costs of new cabinets, flooring, counters and appliances can add up quickly.

Before you start house hunting, it’s important to know how much you can afford. Contact a Cornerstone loan officer and start the pre-approval process today.

 

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4 Tips to Help Close Your Home Mortgage

4 Tips to Help Close Your Home Mortgage

Many homebuyers view the mortgage application procedure as a static action; a snapshot of their financial lives at that given moment. This is not the case. Applying for a home loan is an on-going process that takes into account everything you do up until the day of closing.

Even consumers with good credit and plenty of cash may find themselves out on the sidewalk if any last minute loan application issues arise. The following tips will help you successfully close your home mortgage.

Be Responsive to Your Home Mortgage Lender

As the borrower, you will want to make sure that you are taking the necessary steps to ensure that your home mortgage closes on time and without hassle. It’s crucial to disclose everything to your lender upfront to avoid any hiccups in the process.

Your loan officer will often want to contact you by phone or e-mail; be accessible and helpful. If you wait too long to respond to communications, it could impact your closing or create a problem with the property you want to buy.

Avoid Any Major Purchases Before Closing Your Home Loan

Making a large purchase can shift your debt-to-income ratio and may disqualify you from your current loan offer. Even just applying for a new credit card can cause problems.

Purchasing high price items such as appliances or taking out a car loan can ruin your chances at closing your home mortgage. Don’t put yourself a position where you could end up losing your dream home.

Avoid Career Moves Before Your Home Loan is Closed

Keeping a consistent job and income history is important. One of the biggest factors that home mortgage companies consider is a borrower’s length of current employment.  At the very least, changing jobs initiates the need for more paperwork and may delay the close of your home mortgage.

Prepare for a Last Minute Credit Check

It’s not uncommon for lenders to pull your credit report for a second time to see if anything has changed before you close your home mortgage. Paying off an existing loan or opening a new bank account may present problems for you and your loan officer.

You don’t want to jeopardize your interest rate or the entire deal altogether. If you are planning on making any financial decisions, consult your lender to find out what the impact will be on your process.

If you have more questions about closing your home mortgage, contact a Cornerstone loan officer. They have an average of over 15 years of experience in the mortgage industry and are ready to help you today.

 

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What You Need to Secure a Mortgage in Lee’s Summit

Whether you’re buying your first home or refinancing your second, it’s essential to know what you need to secure a mortgage. Lee’s Summit boasts many fantastic neighborhoods, so it’s no wonder why many people choose to settle down in this area. Although you may have found the community you want to live in, there are a few things you should consider before starting the process. The following key items are necessary to obtain a home loan.

Financial plan

You will need to determine how your new mortgage will fit into your current budget and to some extent, your future obligations 15 to 30 years down the road. Create a budget to help you decide how much you can feasibly spend every month on your loan payment. Remember to factor in other costs such as insurance, taxes, and homeowners association fees into the total amount you will be paying each month.

Although you may have an idea of what the loan payment should be and what you can afford, your lender might see things differently. Borrowers should get pre-approved for a home loan before they look at any properties. A pre-approval letter can give borrowers a competitive advantage over other prospective homebuyers. Additionally, it provides negotiation power when dealing with sellers.

In the pre-approval process, you will find out:

  • Exactly how much home or land you can reasonably afford.
  • The amount of cash you will need for a down payment.
  • The advantages of having a larger down payment.
  • What the lender thinks you can afford, based on your personal information.

Documentation

Securing a home loan involves a lot of paperwork. It will provide a detailed look into your employment record, credit history, and financial assets and liabilities. Gathering these records can be easy and manageable, if you know what your lender expects of you. Below is a list of the documents which you must have to be approved for a mortgage in Lee’s Summit.

  • Valid driver’s license.
  • Secondary identification, such as a passport or social security card.
  • Most recent paystubs for the past two months.
  • W-2 forms from your employer for the last two years to verify employment and earnings history.
  • Signed federal tax returns for the past two years.
  • Most recent bank and asset statements for two months.
  • Divorce decree, if applicable.
  • Name and phone number of your landlord, if you are currently renting a home.
  • Credit report.

A trustworthy team

One of the smartest things a homebuyer can do is to seek professional guidance from a realtor and an experienced lender to help them with their mortgage. Lee’s Summit has many lending companies, so it’s important to do your research. It’s crucial to have someone who is willing to work with your unique situation and guide you through any obstacles.  A good lender can save you time and money by simplifying and clearly explaining the loan process.

Need more information on how to secure a home mortgage in Lee’s Summit? Contact Cornerstone Mortgage, Inc. today at: 816-525-9910 to learn more. Their loan officers are available to answer any home financing questions you may have.

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The Pros and Cons of Lee’s Summit Mortgage Brokers

There is a vast difference between working with Lee’s Summit mortgage brokers and lenders. Shopping for a home loan can be overwhelming, so it’s important to have someone knowledgeable by your side. Before you decide which kind of professional to hire, you will need to understand the benefits and drawbacks of working with a mortgage broker.

Lee’s Summit mortgage brokers process loans and help homebuyers apply for financing, but they are not actually lenders. Their job is to act as an agent, or middleman, who brings the borrower and the lending company together. Pricing can be just as competitive with a mortgage banker, as long as the broker does not take too much compensation.

Pros of Lee’s Summit mortgage brokers

  • They will do the legwork for you, comparing wholesale interest rates from a large number of banks and lenders.
  • They are required to disclose the yield-spread premium, or their compensation for originating the loan.
  • They generally have access to a larger variety of mortgage options.
  • They follow trends, know what products are available and are aware of which institutions might be offering special discounts.

Cons of Lee’s Summit mortgage brokers

  • Do not guarantee good faith estimates.
  • Some individuals lack the experience and training to complete a deal.
  • May charge borrowers substantial fees for their services.
  • Brokers secure your mortgage for a fee and the better deal they make with the lender, the more they are paid.
  • Sometimes known for luring customers in with low interest rates, and then adding origination points and fees to generate additional income from borrowers.
  • Realtors usually prefer to work with direct lenders, who have full control over a loan.

Keep in mind, any third party involvement can slow down the business process. Having too many hands in the pot can complicate any situation. If you use a broker, your application may be handed off to multiple people before being approved for a loan. This can cause delays in the approval process and a decline in communication with the broker.

If you would rather work directly with the person who will be handling your financing, choosing a lender is the best option for you. Many customers appreciate their ability to efficiently handle and resolve issues that may arise. Contrary to popular belief, many lending institutions offer a wide range of home loans. Private relationship-based companies may have different or better programs than independent agents. Many of these firms also typically close loans faster and on time.

Want to learn more about the difference between lenders and Lee’s Summit mortgage brokers?  Contact a Cornerstone Mortgage, Inc. representative today toll-free at: 816-525-9910. If speed, reliability and competitive rates are important to you when applying for a home loan, you are in the right place. Their loan officers have over 15+ years of experience in the mortgage industry and are happy to assist you with any of your home buying needs.

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How to Choose a Lee’s Summit Mortgage Company

Choosing a reputable Lee’s Summit mortgage company can prove to be a challenging task. Many people make the mistake of searching for the “best deal”, instead of the most qualified expert to guide them through the home loan process. Finding a great mortgage lender is critical to the success of your purchase. Below are useful tips to help you find the right Lee’s Summit mortgage company for you.

Do your homework

A knowledgeable mortgage professional can help you set goals and secure a loan that is appropriate for your needs. However, it is up to you as the borrower to decide what type of loan you need to secure your home. Before you can even think about choosing a lender to work with, you must first determine what their financial plan is and how you would like it executed.

  • Make sure they have the loan programs you are interested in.
  • Be aware of which data is relevant when you are comparing loan offers.
  • Assemble a list of what to do and what not to do from information gained through others’ personal situations.
  • Once you’ve selected a loan program, get referrals from friends who have recently bought homes.
  • Experienced real estate agents can also refer borrowers to companies they have worked with in the past.

Find someone you can trust

Mortgage lending should be a collaborative activity for the loan officer and borrower. Your professional should also use a consultative approach to steer you through your home-buying journey.

  • Find a mortgage banker who will agree to set expectations upfront, such as how long it will take to process the loan, and how often you will communicate and by what means.
  • Interviewing is a good tool for narrowing down any potential candidates. Your first impressions will help you in the final analysis of choosing a Lee’s Summit mortgage company.
  • Speak with lenders more than once if it’s necessary to understand and learn more about the company’s business practices.
  • Work with a Lee’s Summit mortgage company that is locally owned and operated, so that your loan officer is more accessible.

Test their knowledge and abilities

Ask lenders the following questions to help you decide if you are satisfied with their skills, experience, and commitment to service. If you do not have confidence in the lender’s answers or you feel uncomfortable working with an individual, you should move on to another company.

  • See if they can explain what each option means for you, without using mortgage jargon.
  • Request a side-by-side comparison of their different loan programs.
  • Do you offer conventional, FHA, VA or USDA loans?
  • Will I be presented with a Good Faith Estimate immediately?
  • Could you estimate closing costs for my loan?
  • Can you explain your fees?
  • How and when will you earn your income from this loan?
  • Will you get approval for my loan locally?
  • Are you certain my loan will close in time?
  • How will you handle any last minute changes or unforeseen obstacles?

Don’t be deceived

Borrowers need a person that is focused on them, not just their loan. Some lenders are not trustworthy. Given the opportunity, they may make choices that benefit themselves, rather than the borrower. While loan officers are employees, they act more like independent contractors. Their salaries are largely based off of commission, which is typically 1% of the loan amount. Here are some ways to avoid being taken advantage of by a Lee’s Summit mortgage company.

  • Make sure the loan officer is licensed locally and nationally. Each state has different requirements, so it’s critical to understand the extent of their training.
  • Ask who will service your loan if it is sold, that way it is easier to track someone down later if issues arise.
  • Good Faith Estimates are not set in stone. Make sure you are being charged the amount that was agreed upon at the beginning of the process.
  • Check to see if they are a valid member of the Better Business Bureau and the local Chamber of Commerce.

If you are looking for a trustworthy Lee’s Summit mortgage company, call Cornerstone Mortgage, Inc. at: 816-525-9910 or complete their secure contact form. Their loan officers have an average of 15+ years of experience in the mortgage industry and are ready to help you today.

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Getting a Lee’s Summit Home Loan

If you are looking for a Lee’s Summit home loan, you might find yourself overwhelmed. Purchasing a home was once a simple task, but now it requires a great deal of research and planning. It’s necessary to pay attention to the details of each financing program. Every borrower’s financial situation is unique and has its own obstacles. Regardless, there are many ways for homebuyers to take charge of the mortgage process.

Prepare for success

Contrary to popular belief, finding a mortgage doesn’t begin with the application. Buyers should start by researching loan programs, rates and lenders.  Before any decisions are made final, you should educate yourself on all of the possible options. It’s up to you to analyze your budget and determine how much you can comfortably afford to spend. You will also need to consider your future obligations 15 to 30 years down the road. Online calculators can be a very helpful tool. They allow you to see how different down payment sizes, interest rates, and types of mortgages will affect your monthly payment.

Shop around and get familiar

After you’ve considered your financing options, it’s time to find a reputable lender. Communication is a key element of the home-buying journey. Any professional that is not willing to answer your questions or respond in a timely manner, is not worth your time. It’s important to choose someone that will keep you informed and will have your interests in mind. Below are some tips to use when shopping for a Lee’s Summit home loan.

  • Use testimonials and customer reviews to evaluate lenders.
  • Remember that the true cost of the loan includes fees for items such as prepayment penalties, origination, discount points, the credit report, and appraisal.
  • Use the annual percentage rate to compare options. This is the fastest and easiest way to see how much a particular mortgage costs.
  • Your decision should not be based on the lowest interest rate, but the best overall terms from a respectable lender.

Once you have the person you would like to work with, get preapproved for your Lee’s Summit home loan. It will give you a competitive advantage over other potential buyers. Sellers are more willing to accept an offer from a person who is able show they can close the deal.

The application

If you have all of your paperwork in order, applying for a Lee’s Summit home loan is easy. Make sure to fill out the application accurately and truthfully. All information you provide will be thoroughly examined and verified. Being organized will help you avoid any delays and ensure that your loan will be closed faster. The following are some of the elements you will need for the application.

  • Social security number.
  • Driver’s license.
  • Any current assets and liabilities.
  • Bank account statements.
  • Recent paystubs.
  • Income tax returns.
  • Child support documents.
  • Divorce decrees.
  • Residence history.
  • Proof of investment income.
  • Rental property information.

Government entities that guarantee loans are requiring more documentation than ever. Lenders want to know that you are the borrower that you claim to be. They will ask for new paystubs before closing your Lee’s Summit home loan and recheck your credit profile to make sure nothing has changed.

Are you looking for a Lee’s Summit home loan? Call Cornerstone Mortgage, Inc. today at: 816-525-9910. Their mortgage professionals will guide you through every step in the home-buying process.

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Getting the Best Kansas City Mortgage Rates

Kansas City mortgage rates will start to rise in the near-future and many consumers may miss out on the opportunity of a lifetime. Homebuyers, who can lock in long-term financing at today’s prices, will find their investment to be much more worthwhile. Time is running out so don’t hesitate to make your move now.  Here are a few tips to help you acquire the best mortgage rate before it’s too late.

Know your situation

The expenses of homeownership can quickly add up. Even though Kansas City mortgage rates are constantly changing, buyers can use the right tools to find an affordable loan for their needs. There are three important questions that borrowers must be prepared to answer, so lenders are able to provide accurate quotes.

  • How large is your down payment?
  • Are you buying a single-family home or a condominium?
  • Are you refinancing or purchasing?

Ultimately, these three elements can greatly influence your monthly mortgage payment. The type of property you plan to buy and the size of your down payment will impact your cost of financing.

In addition, having a good credit history can easily save you tens of thousands of dollars. Typically, borrowers with credit scores higher than 760, receive better deals. Instead of having multiple inquires on your report, share your score with your potential lenders.

Establish a standard

Buyers should already have a basic idea of what kind of loan they want and how much home they can afford. Researching ahead of time will help the consumer make a more informed decision. There are plenty of online calculators that can help you determine the most appropriate loan and interest rate that works for your budget. Once you’ve examined your options, acquire a referral from a trusted family member or friend. Contact the suggested lender to obtain your credit score and discuss your loan choices.  This is an opportunity to have an expert explain any other financial issues that could be encountered.

Discount points

This route is not recommended for every homebuyer. It may only be beneficial to some borrowers. Discount points are generally paid at the time of settlement. Each point is equal to one percent of your loan amount. They are used as a way to lower your Kansas City mortgage rates. These points are normally recommended for people who plan to stay in their home for more than 10 years. If you have to move in a few years, purchasing discount points could cost more than it’s worth in the long-run.

Ask about fees

The lowest Kansas City mortgage rates may not be the proper choice for homebuyers. Although a company may advertise the cheapest rates, there can be many hidden costs. It’s vital to understand the expenses associated with each rate, so that you choose the right loan product for you.  Make sure to ask each lender the following questions.

  • How much do you charge for origination?
  • How much do discount and origination points cost?
  • What fees are included in your quote?
  • What is the annual percentage rate?

Finally, when shopping for a loan, it is essential to remember to call lending companies within the same timeframe. The market can change dramatically at any moment. In order to create a precise comparison, they should all be contacted on the same day around the same time.

If you would like more information about Kansas City mortgage rates, contact Cornerstone Mortgage, Inc. today at: 816-525-9910. Their experienced mortgage professionals will make you feel comfortable with the home buying process.

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How to Get a Kansas City Home Mortgage

If you are among the many people planning to buy a house this year, it’s a great idea to understand the process of getting a Kansas City home mortgage. It will help you save money in the long-run. Making intelligent, informed decisions about your finances can be beneficial to you and your family. Use the following tips to ensure that your lending journey is smooth and easy.

Make a monthly household budget

As a homebuyer, you can rely on a bank or lender to tell you how much financing you can afford, or you can figure it out on your own. In some cases, lenders will approve buyers for more than what they are willing to borrow. It’s important to determine what you can reasonably spend on your Kansas City home mortgage each month. Here are a few ways to make budgeting easier.

  • Pay yourself first: Saving a percentage of your income each month can help you prepare for your long-term goals. Many people don’t follow this approach but it’s vital to be smart about your money. You should decide how much you can comfortably set aside into a savings account, so you have funds for emergencies or a down payment.
  • Create or find a financial planning template: This can be a very useful instrument for any homebuyer. It can tell you how much money you have, where it’s coming from, and where it’s going. There are a variety of free templates accessible online.
  • Find out your actual monthly income: Your income is not based solely on your salary. Other sources, such as monetary gifts, work bonuses, stock dividends, tax returns, and interest from savings accounts, are all included in your monthly income.
  • Make a list of mandatory expenses: Automobile loans, insurance, utility bills, taxes and groceries are just some of the mandatory expenditures of living that cannot be avoided. Evaluate all of your expenditures and see if there is anywhere for you to cut costs.
  • Make a list of discretionary expenses: Eating out, unnecessary shopping trips, lattes from the coffee shop, theater tickets and vacations are all luxuries. Any item or service that is not required for basic survival is a discretionary expense. An effective way to curb these spending habits is to be conscious of where your money is going. This will help you to properly delegate your income.

Researching your options

For today’s homebuyers, there are multiple types of loans available. Although Conventional mortgages are very popular, they are not for everyone. Some will choose a non-conventional financing, such as a FHA loan. It’s important to assess all of your possible choices before making a final decision.

Questions to ask when considering a Kansas City home mortgage:

  • How long do you plan to stay in your home?
  • What is your credit score?
  • What is your maximum spending limit?
  • Would you prefer a fixed or adjustable-rate loan?
  • Do you plan to make a down payment or 5% or less?
  • Will your down payment size be 20% or more?

Lastly, don’t wait until you have found your dream home to start the loan approval process. This can often lead to missing out on a great opportunity. Preapproval will give you an indication of what your financing options are. It can also remove some of the uncertainty when buying a home.

Finding a reputable lender

A great lender can offer guidance, but it is ultimately the borrower’s responsibility to choose the most appropriate loan for their needs.  By setting your maximum monthly payment, you can stay within your budget easier. If your household income does not exceed your monthly expenses, it may not be a good time for you to consider a Kansas City home mortgage.

  • Talk to a few different companies to find the right mortgage for your situation.
  • Always speak with a lender before house-hunting.
  • Remember, preapproval does not bind you to a particular company.
  • Ask your real estate agent who they would recommend for you.
  • Make sure to ask about turnover time to avoid your loan being delayed.
  • Request a side-by-side comparison of their loan options.

Want to learn more about how to get a Kansas City home mortgage? Complete a Cornerstone Mortgage, Inc. contact form today or call: 816-525-9910.  Their loan officers will help you determine the best home loan for your needs.

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How to Secure a Chicago Home Loan

Obtaining a Chicago home loan can be a life-changing event for many homebuyers. Whether you are moving for a job or just need a new atmosphere, buying a home will change your future. There are a couple of obstacles to conquer before you secure your new residence. The number of houses on the real estate market has decreased in the past few years. Interest rates are historically low.  These factors have created a great deal of competition between consumers. In order to combat these trends, buyers need to be prepared. Sellers want to know that a buyer is legitimate and actually has the financing to purchase the home. Pre-approval is the best way to prove to a seller that you are serious. Here are four reasons to get pre-approved, so that you can secure your Chicago home loan.

1.    Prequalification is too informal.

The terms “prequalification” and “pre-approval” are often mistakenly interchanged. In fact, these words do not hold the same meaning.

The problem with prequalifying:

  • Only estimates the buyer’s possible purchase power.
  • Does not hold as much meaning as a loan approval.
  • The borrower’s information has not been properly documented and reviewed.
  • Does not include a credit history analysis.
  • Not a guarantee or contract to provide financing from the lender.

To be pre-approved for a Chicago home loan, you will need to submit an application with some simple personal records. These documents include your W-2s from the past two years, your latest bank statement, and your most recent paystubs. The lender will need all this information to verify your financial status and employment history. You may also be required to provide material related to self-employment, divorce and alimony, investment properties, and immigration status. The borrower and any co-borrower’s credit record will be examined as well. Many lending institutions give clients the option to either complete the application in person or online.

2.    Reduce your stress.

The buying process is always easier if the buyer knows exactly how much they can offer for the property they desire.

  • Avoid house-hunting heartache by knowing how much you can afford ahead of time.
  • Select homes in the proper price range.
  • Allows the borrower to create a reasonable budget.
  • Immediately accept a seller’s offer or counter-offer with a lower price.
  • Helps the buyer create a financial budget.

3. The power of negotiation.

U.S. housing inventory is currently down. You may find yourself battling against other consumers for a particular property. In order to have the upper-hand in negotiations, buyers should get approved before they start looking for a home.

  • Ability to present a strong purchase proposal.
  • Be well-positioned among the competition.
  • Sellers will focus on bids presented by approved buyers.
  • Let sellers know that your financing will not fall through at the last moment.

4.    Establish a working relationship.

Purchasing a home is a very complicated process. It’s wise to research potential agents and lenders. Your loan officer should be motivated, experienced and knowledgeable about the mortgage industry. The real estate agent should be familiar with the neighborhoods and property in the area.   Since you will be working closely with these individuals, you will more than likely develop relationships with each of them. Let your professionals get to know you and your needs. This will allow them to suggest better solutions for your financing and housing. Agents will take their job more seriously, if they know a buyer is already authorized for a Chicago home loan. Don’t be afraid to ask your lender or realtor any and all questions you may have about purchasing a house.

Are you interested in a Chicago home loan? Complete a Cornerstone online application today. Cornerstone’s experienced loan officers will guide you through the home buying process.

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St. Louis Home Loans 101

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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