If you’re in the process of purchasing a new home, understanding the mortgage loan process might seem daunting. We’re here to help simplify the process and make it easier to understand.
At Liberty Lending Consultants, we pride ourselves on guiding our clients through every step of the mortgage loan process. Our team of experienced mortgage professionals uses a personalized approach, taking time to understand your financial needs and circumstances before recommending the right loan option for you.
Make no mistake, there’s a great deal of work involved in getting a home mortgage loan, but Liberty Lending Consultants will do most of the heavy lifting for you, so you can concentrate on what’s important – preparing to move into your new home, saving money or making plans for your home equity line of credit.
There are four main steps involved in getting a home loan. You’ll see that we’ve made your part in them as easy as possible, while we do all the work! That’s what we’re here for.
A couple of key questions determine the maximum amount you can borrow. How much of a monthly payment can you afford? And given your unique employment and credit history, goals, income, and debt, how much will a mortgage lender loan you?
You can get a rough answer to the first question by using a loan calculator to get a mortgage rate and loan estimate. We’ll help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we’ll give you a good idea of what kind of terms and loan program you can expect to benefit from most.
This is where the rubber meets the road and you save the most money. This step involves our team running a credit report, evaluating your credit score, employment history, and other financial information to determine the loan amount for which you qualify.
Pre-approval provides you with a clear understanding of your budget, enabling you to search for a home that meets your criteria and fits within your budget.
When we review all this information we give you a pre-qualification letter. This is your conditional approval.
Handle it with care: to a home seller, it’s like a suitcase full of cash! Your real estate agent will use your Pre-Qual (as they may call it) to make the best offer on the home you choose. And if the seller knows you have pre-approval, it gives you buying clout. While you’re picking out the home that’s right for you, we’re busy finding the best mortgage rates for you.
The next step in the process is submitting your mortgage loan application. We’ll provide you with a list of documents needed, including proof of income, tax returns, and other financial information required by the lender.
Once your mortgage loan application is submitted, a loan officer will guide you through the underwriting process. This involves the mortgage lender evaluating all the information presented in your mortgage application to determine the risk involved in providing you with a loan. Our team will work with the lender to ensure that the process runs smoothly and quickly.
Once you’ve made an offer through your real estate agent and it has been accepted, it’s time to complete the home loan process. Just fill out our online form or call us at (314) 336-9111 – it couldn’t be simpler. When the time is right, we will order an appraisal of your new home.
After the underwriting process, it’s time for closing. We’ll set up a time and place for you to sign your loan documents and finalize your mortgage.
Your real estate agent and the seller will work together to designate an escrow/title company to handle the funding of your home loan once you have final loan approval. We’ll coordinate with the escrow company to make sure all the papers your lender will need are in order including the closing disclosure, and you’ll sign everything at the escrow/title company’s office.
Once you’ve signed the documents, you’ll receive the keys to your new home, and the home loan process is complete.
We understand that the mortgage loan process can feel overwhelming, but at Liberty Lending Consultants, we’re here to help. Our personalized approach, experienced team, and commitment to providing excellent customer service make us the right choice for your mortgage needs. Contact us today to learn more about our services and how we can help make your home-buying dreams a reality.
Your credit score and history are really important pieces of information that St. Louis mortgage lenders 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 mortgage 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 and it also affects your credit score. 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. Your credit score shows a potential lender how good you might be at paying back a loan. The range of a credit score is approximately 300 to 850, with a credit score above 700 being good and a credit score above 800 being excellent.
Some lenders will work with state agencies to offer programs that can help first-time homeowners. Borrowers may be offered a discount on the rate or assistance with the mortgage loan down payment. They may make this available to you by the bank 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.
Doing research on this topic will save you time, money, and hassle. It will also help you feel less overwhelmed over time. After all, the purchase of a first home is a big step and it’s important to get the financing portion correct. In addition to veteran status and student loans, other financial criteria are evaluated. A credit score is an important factor, as well as total income and possible debt.
One of the next decisions will revolve around paying off the loan. Learning the difference between a fixed or floating rate is important. The other consideration is the size of the down payment. This is the upfront cost you will pay when you close on the home. It is based on a percentage of the total loan. Finally, with those pieces of information in place, it’s time to calculate the number of years until the loan is paid off. As you’ll read about in the next section, choosing a loan type is next. For a first-time home buyer, FHA is a prime option followed closely by VA and USDA 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 home 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 by the lender depending on your credit.
VA loans and USDA loans often do not require you to make a down payment. You will have to make a 3.5% deposit with FHA loans, but this is lower than you would get with other lenders. All three of these loans will also have a lower minimum credit score required 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.
The loan from the Department of Veterans Affairs is the VA loan. This is associated with military members or their families. These loans are actually guaranteed. As long as a vendor is qualified, the VA guarantees this type of mortgage. It usually does not require a down payment. The Federal Housing Administration loan would be for an FHA arrangement or first-time homebuyer. A home loan coming from the Department of Agriculture would be the USDA path.
There are many rate comparison tools that you can use to see what mortgage rates different companies are offering. While looking at APR can be a useful basis for comparison, it is not all that you need to think about.
A residential mortgage loan may 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 and fees. 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.
If you feel that a lender is trying to push you into a decision, then this could be a warning sign. You need to be given enough time and space to think everything through, and a good broker will respect this.
A mortgage loan officer will often give you pre-approval for a loan product, 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 brokers 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 from multiple lenders you may want to factor in 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.