5 Facts About Working With a St. Louis Mortgage Broker

After locating your ideal home, your attention now switches to find the best mortgage so that you can buy that home. One way to make sure the new home becomes yours is to work with a mortgage broker throughout the entire process.

Perhaps you have already heard of mortgage brokers from family or friends that have previously taken out mortgages in order to buy their homes.

Even so you may still be wondering what a mortgage broker does, and what they can do from the mortgage advisors who work for banks.

To assist you in understanding what mortgage brokers do, and how it makes taking out a mortgage here are 5 frequently asked questions and answers to them.

1. What is a mortgage broker?

A mortgage broker acts as a go between that uses links ith several different banks in order to find you the best deal in terms of interest rates. Mortgage brokers have good links with several banks so that they can assist all of their customers.

Mortgage brokers are qualified and licensed financial experts who process and gather mortgage claims as their profession. They will check your credit history and all relevant documents in order to apply for mortgages on your behalf.

As soon as you have agreed to apply for a specific loan, your mortgage broker will coordinate with the lender, the real estate agency, and the titleholder until the process is completed by you moving into the property.

2. How is a mortgage broker paid?

Usually, mortgage brokers are paid by the borrower or the lender, but never by both. Generally, they will receive a fee worth between 0.50% and 2.75% of the total mortgage loan.

Borrowers can decide to pay the mortgage broker fee themselves, and that is known as borrower paid compensation.

In the coastal areas and the most popular cities like New York and Los Angeles the fee tends to be 0.50%. An upper limit of 2.75% was introduced by the federal government in order to promote sustainable mortgages.

The limit for fees and points that brokers can charge is 3% in order to deter the irresponsible mortgage lending, which led to the last housing crash.

3. What makes a mortgage broker different from a loan officer?

Basically a loan officer works for, and is paid for by a single bank or lender, whereas a mortgage broker tends to work with several banks. Brokers are then paid by the lender that offers the loan (unless paid by the borrower).

4. Is a mortgage broker right for me?

A mortgage broker is the right option for many home buyers. Mortgage brokers will save you both time and money because of their links with several lenders.

As mortgage brokers apply for loans for you, they will work out the best rates, costs and over all deal for you.

Aside from money, a mortgage broker will also save you time by smoothing out the process and making sure that the lenders, solicitors, and the real estate agents do everything right and on time. They will shorten the time it take you to move into your new home.

Mortgage brokers just like lenders charge different fees, so compare fees before picking a broker. All brokers will save you time, and some will cost less than others.

Compare the interest rates and fees charged by different lenders, estate agents and mortgage brokers. Such comparisons could save you substantial amounts of money on possibly the most expensive item you will ever buy.

5. How do I chorse a mortgage broker?

A good method for chosing a mortgage broker is to seek advise from family and friends if they have used any brokers recently. Make sure that whoever is offering advise has used the service themselves fairly recently.

Ask for advise from your real estate agent, chances are high that they have mortgage brokers who they prefer to deal with. Your agent will trust some brokers more than others and recommend their favorite ones to you. Remember you can still pick another broker, you do not have to go with their recommendation.

Do not go with the first broker you see details for, or the cheapest one. Instead interview at least three mortgage brokers to find the one you think will deliver you the best service.

You can also check their license to see if they are in good standing with the state licensing authority. Online review and also the Better Business Bureau can provide useful reviews and information about the good or bad reputations of local brokers.

The post 5 Facts About Working With a St. Louis Mortgage Broker appeared first on LL.

Source: http://www.libertylendingconsultants.com/home/5-facts-about-working-with-a-st-louis-mortgage-broker/

Know Your Homebuyer’s Rights and Don’t Get Left Out!

It doesn’t take much to feel out of your depth when it comes to buying a home. Slick realtors and TV show tycoons are just itching to trick you and stick you with the bill—preferably with a hefty fee tacked on for them! But all of this can be avoided if you know your homebuyer’s rights!

  1. You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders. Look all around town, do your research: Liberty Lending has the best deals in town!
  2. You have the RIGHT to be informed about the total cost of your loan including the interest rate, points, and other fees. Liberty Lending is 100% up-front with any charges you owe and you’ll never get hit with a surprise bill.
  3. You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
  4. You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement. We hope you never have to, but sometimes these things happen.
  5. You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.
  6. You have the RIGHT to ask questions about charges and loan terms that you do not understand. Not everyone is an expert in real estate, so don’t worry about having to ask!
  7. You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance. We don’t hate, and we don’t discriminate!
  8. You have the RIGHT to know the reason if your loan was turned down. We won’t keep you in the dark!
  9. You have the RIGHT to ask for the HUD settlement cost booklet “Shopping for Your Home Loan”. This informative booklet will tell you everything you need to know about shopping for your next home loan, and then some!
  10. You have the RIGHT to be happy with your home loan! Stick with Liberty Lending and we promise you always will be!

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Source: http://www.libertylendingconsultants.com/know-your-homebuyers-rights-and-dont-get-left-out/

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St. Louis FHA Loans 101 For 2019

You would be hard-pressed to underestimate the importance of an FHA loan. First of all, an FHA loan is a government-backed mortgage that is insured by the Federal Housing Administration, which is where the initials “FHA” comes from. Needless to say, FHA loans are quite popular with first-time home buyers. This is because an FHA loan is often easier to get, requiring a lower minimum credit score and less of a down payment than traditional mortgages. The government will ensure the loans, but the lender will usually be an institution that has been approved by the Federal Housing Administration.

With an FHA home mortgage, you usually can expect a fixed rated of either 15 or 30 years.

Understanding FHA Home Loans

An FHA mortgage works by allowing borrowers who may not have a high income or the best income still be able to qualify for a mortgage. It is a great way to become a homeowner at a reduced rate. However, there’s a catch. All FHA mortgage holders must pay into the FHA mortgage insurance plan so that the lender is protected in case the borrower defaults on their loan.

Because an individual applying for an FHA loan will often put down less than 20 percent of the home mortgage, this insurance will be required.

When you finance your FHA mortgage, you will have to pay an upfront mortgage insurance premium of 1.75 percent of the total amount of the mortgage. If you are having difficulty coming up with this initial premium, don’t fret; the fee can often be rolled into the amount financed by the loan.

After this step is completed, you will have to pay an annual mortgage insurance premium of either 0.45 percent or 1.05 percent. Your rate depends on whether you have a fifteen-year note or a thirty-year note, and it also depends on your loan-to-value ratio. Generally, you would multiply the mortgage amount by your rate and then divide by twelve to get your monthly payment.

For example, let’s say you borrow for an FHA loan of $200,000. Your initial mortgage insurance payment is going to be $3,500 and your annual mortgage insurance premium is going to consist of an annual payment of $900 and a monthly payment of $75 if you have a 15-year mortgage. On a thirty-year mortgage, you would have an annual payment of $2,100 and a monthly payment of $175.

Can FHA mortgage insurance be canceled? No, not in most cases. Usually, about the only way you can get out of paying FHA mortgage insurance would be to either refinance your home to a non-FHA loan or to sell the house outright. Regardless of these factors, FHA loans tend to be popular with first-time buyers and those with lower incomes or poor credit scores. The beauty of the FHA loan is that you can even be a repeat buyer as long as the loan is going to go towards the purchase of a primary residence!

Another set of good news would be that in order to become an FHA-approved lender, a banking institution must commit to only charging between 3 and 5 percent on closing costs. The FHA will allow builders, lenders and home sellers to only have to pay up to six percent on such closing costs as credit reports, title searches and home appraisals.

How do I qualify for an FHA loan?

Borrowers must meet a number of lending guidelines in order to qualify for an FHA loan, including the following:

A FICO score between 500 and 579 if they want to be approved for the 10 percent down FHA option or a FICO of 580 or higher if they want to qualify for an FHA loan with only 3.5 percent down.

A verification of their employment history for at least the past two years.

Verifiable income; this can be accomplished through bank statements, pay stubs and federal tax returns.

The loan must be used for a primary residence.

The property is to be appraised by an FHA-affiliated appraiser and the home should meet all HUD guidelines.

The front end debt ratio (monthly mortgage payment) must not exceed 31 percent of your income. Some lenders might allow 40 percent of your gross monthly income in some cases.

If you have gone through bankruptcy before, you must allow for at least 12 to 24 months to apply for an FHA loan. If the home is being foreclosed upon, you must be bankruptcy-free for at least 36 months.

FHA vs. Conventional Loans

One of the main differences between FHA loans and conventional loans is that traditional loans are not insured by the federal government. Moreover, if you at some point want to qualify for a conventional loan, you will normally need a solid income, higher credit score, and higher down payment.

Types of FHA Loans

The Federal Housing Administration offers a lot more than just the prototypical FHA loans. They also have the ability to insure other types of FHA loans as well. Consider some of these examples:

FHA 203 (k) Loans: This FHA loan type exists to help buyers who want to purchase a home that is deemed a “fixer-upper.” Borrowers have the added benefit of being able to roll the cost of repairs and the cost of the home into one mortgage. An FHA k loans come in two different types:

Streamlined or Limited 203 (k): This loan type is available for those who are buying a home with improvements that will only total $35,000 or less. The paperwork is easier with this type.

Standard 203 (k): This is the full-fledged type of FHA improvement loan, and it will require much more paperwork than the limited version. The home will need to have improvements that cost more than $35,000 to qualify for this type. Both of these types have a $5,000 minimum for rehabilitating the home.

Home Equity Conversion Mortgage (HECM): The FHA also helps people with their retirement plans too. The HECM is one example, and it is for senior citizens aged 62 and older who either have significant equity or have their home paid off outright and want to have a reverse mortgage.

FHA Energy Efficient Mortgage (EEM): The FHA encourages individuals to purchase homes that are energy-efficient. They also have programs that can help the new homeowner make their home more energy-efficient.

FHA Section 245(a) Mortgage: This is also known as the Graduated Payment Mortgage, and it allows borrowers to raise their mortgage payment over time. This program works best for those who will incomes that increase over time. There are five different plans, and they are categorized by how much the rates will increase over a specific time period.

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Source: http://www.libertylendingconsultants.com/st-louis-fha-loans-101-for-2019/

Conventional Loans Versus FHA Loans

This blog is a comparison between conventional loans, also called fixed-rate mortgages, and Federal Housing Authority Loans (FHA Loans). The other loan types–VA loans (for veterans) and USDA Loans (for rural development, or farms)–are a bit more straightforward in their intended audiences and qualifications.  Most people have an idea of what a conventional loan entails, but are less aware of the pros and cons of FHA loans. Since conventional loans are a good basis for comparison for any any other loan types, they’re a good way to understand exactly why one would opt for an FHA loan, if such an option presents itself.

Definitions

A conventional loan is defined as any loan not provided, qualified, or secured by a government entity. This fact serves as the foremost distinction between conventional loans and the other three loan types, as each have ties to government agencies and carry criteria that reflects their provider. Conventional loans are generally secured by lending entities like banks, credit unions, and private mortgage companies. The most prevalent examples of these are Federal National Mortgage Association (Fannie Mae) and the Federal Mortgage Home Loan Corporation (Freddie Mac). While the names of these prestigious organizations may sound like government entities, they are in fact government-sponsored publicly traded companies. FHA loans are those approved and insured by the Federal Housing Authority. As they are insured by a government agency, they are not considered conventional loans. FHA Loans offer lower requirements to qualifying home buyers as a way for the US government to support homeownership to lower-income families.

Main Differences

The following list defines the specific differences between conventional loans and FHA loans from a numbers standpoint:

● The minimum credit score for a conventional loan is 620, which is about average to
slightly above average. As such, homebuyers with detrimental items like repossessions
and evictions on their credit report may look to FHA loans as an alternative, since the
minimum credit score for this loan type is a much more lenient 500.
● The down payment on a conventional loan is always between 3 and 20% depending on
credit. FHA loan down payments vary as well, but less so, offering low down payments
(3.5%) for homebuyers with scores above 580, and 10% rates for homebuyers with low
credit scores between 500 and 579.
● Conventional loans can be 10, 15, 20, or 30 years in length, whereas FHA loans are
always either 15 or 30 years.
● Homebuyers using conventional loans can forego mortgage insurance with a sufficient
down payment; FHA loans require mortgage insurance premiums require a percentage
of mortgage insurance premiums upfront, which will continue for a specified duration
depending on the length of the loan.
● A down payment gift can be used to satisfy 100% of the down payment for an FHA loan,
where only part of a down payment gift can be used for conventional loans if the down
payment is less than 20%.
FHA loans are eligible for down payment assistance programs; conventional loans are
not.
● FHA loans have lower interest rates than conventional loans.
● The maximum loan amount of a conventional loan is $424,000, where FHA loan
maximums vary according to location.

Loans can be technical challenges to even the most experienced buyers, so we offer comprehensive consulting services to help you sort out these or any other parameters that may be unclear. Call us at 314-336-9111 or use any of the means provided here to find out if you pre-qualify for a conventional or FHA loan.

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Source: http://www.libertylendingconsultants.com/conventional-loans-versus-fha-loans/

What Do I Need to Refinance?

To some, the word “refinance” has a stigma attached to it similar to bankruptcy; the idea of it brings about concern over the desperate state of the homeowner using their house as a means to get out financial trouble.  This is inaccurate, of course. For many, refinancing is simply a smart move, either to take advantage of home equity, to lower monthly payments, and/or to shorten or extend the length of their original home loan. Whatever the reason, it’s a common practice among homeowners, so you needn’t feel overwhelmed at the prospect of refinancing.  That said, refinancing isn’t a light decision, either. It should make financial sense in the short and long term, and there are some things to consider before you can even qualify.

The decision to refinance or not is deeper than can be covered in a blog since much of it is case-by-case.  Instead, this article is a broad checklist of items and knowledge you should have on hand after you’ve decided to look into refinancing in earnest.

Documentation

As with any large transaction where banks or lenders are involved, paperwork is no small part of refinancing. Like the original home loan, the trustworthiness of the buyer, i.e. you, will again come into question.  You can expect the usual: paystubs (3 months), tax forms (W-2, 1099), and credit score reports. The latter brings up a recurring need to clean your credit before consideration or keep it clean if you’ve already taken steps over the years. Also, bear in mind that self-employed borrowers generally need to go through extra steps to show proof of income–such as providing profit statements–as much of their income and expenditures aren’t as thoroughly documented.   You’d think credit reports would be enough, but most lenders will also want to see proof of your outstanding debt or lack thereof, as well as documents that validate your current assets to determine your ability to cover upfront costs.

Fees

You’ve dealt with banks and lenders before, so by now, you know how much they enjoy adding fees onto an existing transaction.  They have to get paid for their time, after all, as well as the “inconvenience” of renegotiating a deal they’ve already struck. Expect lofty bank costs as the ‘paying for labor’ portion of the total expense, as well as lawyer, insurance, appraisal, and possible closing fees. A savvy realtor will help you decide how these fees affect the viability of refinancing.  

Payoffs

The lender accepts the remaining loan amount on your behalf, so there will be payoffs and penalties to account for their losses in terms of interest and additional fees that would have accrued over the course of loan payment.  Payoffs may include fees for the principal balance, interest, and escrow, while penalties are generally percentage-based. For example, prepayment penalties protect the lender who accepts the original loan, and it can exceed tens of thousands of dollars depending on the actual cost; these costs are passed on to you, of course.

Professional Help

Unless you or someone close to you is in the industry, seeking professional help should be part of any refinancing checklist.  Having an experienced consultant in your corner could save you thousands of dollars. We’re here to help walk you through the specifics and explain the items listed above, so you can feel safe in the knowledge you’re not entering a refinancing operation without foresight.

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Source: http://www.libertylendingconsultants.com/what-do-i-need-to-refinance/

LIBERTY LENDING AND KELLER WILLIAMS CARES CHARITY PARTNERSHIP ANNOUNCED

St. Louis, Missouri (May 14, 2018)- Liberty Lending, a financial consulting company that specializes in helping people achieve their financial dreams, partnered with Keller Williams Cares to raise funds for the charity. Keller Williams Cares is an organization designed to provide relief to Keller Williams employees who may need financial help in case of a major emergency.

More information can be found at: http://kwcares.org

Keller Williams Cares also gives some of their profits to other charities, such as Ryan’s Well Foundation, “Homes For Our Troops,” and MD Anderson Cancer Center.

Any KW Associates in need of financial assistance for immediate needs, whether shelter, food, transportation, or any other services, can get in touch with Keller Williams Cares to get the help they need.

KW Cares is a public charity created to support Keller Williams associates and their families with hardship as a result of a sudden emergency. The organization defines hardship as difficult circumstance that a person or family cannot handle without outside help.

As the brainchild of Keller Williams agents who had a dream to reach out and support fellow KW associates facing financial hardship, KW Cares offers life-changing services and care for those in need.

It was brought to fruition by Mo Anderson, the vice chairman of Keller Williams Realty, who took the original idea and made it a reality by turning it into a public charity.

The site states: “Today, KW Cares is supported by associates from across North America. It has truly become the heart of the Keller Williams culture in action, finding and serving the higher purposes of business through charitable giving in the market centers and communities where KW associates live and work.”

In 2017 alone, KW Cares awarded 716 grants, which totaled $4,423,775 for KW family members in 29 of the 33 regions. It has also helped to provide pressing disaster relief in Texas, Florida, California, and Puerto Rico.

Liberty Lending is a proud provider of USDA home loans in the state of Missouri, allowing for millions to gain access to housing for very little to nothing. For additional information, check out the Liberty Lending’s Facebook page for additional posts, reviews, and more.

Liberty Consultants

1950 Craig Park Ct #100,

St. Louis, MO 63146

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Source: http://www.libertylendingconsultants.com/liberty-lending-and-kw-cares/