When shopping for a mortgage loan for purchasing real estate in St. Louis or St. Charles County area of Missouri, there are several things you need to do to ensure you get the best mortgage rate possible.
1) Know and Improve Your Credit Score
Get a copy of your credit report and know your FICO score. You can order a free credit report from credit reporting agencies experian.com, equifax.com, or transunion.com that will provide your FICO score. Once you know your number you can calculate your loan savings based on your credit score using the myfico.com loan savings calculator here.
When reviewing your credit report check for any discrepancies or anything unusual that needs attention. Look for mistakes such as accounts that are not yours. A study issued in 2012 by the FTC found that 1 in 5 people have errors on their credit report. When you find errors, contact the creditors by phone or mail to correct the error.
2) Compare Lenders
An online search can help you find and compare mortgage rates for different lenders. You’ll also want to check and compare the amounts of their closing costs. Ask friends and family what lenders they have worked with and their feelings about that lender. Or contact TheBoehmer Team for contact information on reputable area lenders that have successfully assisted clients in obtaining great mortgage loan products.
3) Compare Loan Types
Choose the right mortgage product based on your needs. Do you plan to stay in the home for many years? Or do you plan to sell or refinance in a few years? The answers to these questions will help you determine what is right for you. Loan types include: fixed-rate loans, adjustable-rate loans (ARMs), Federal Housing Administration loans (FHA), Veterans Administration loans (VA) and other low or no down payment loan products. For more in-depth information on choosing the right type of loan visit our page detailing the loan process.
4) Build Your Down Payment
The size of your down payment can affect the interest rate you pay, the type of loan products available for you and how much if any mortgage insurance you will need. In general, a larger down payment helps get you better mortgage rates and less expensive loan products.
While putting twenty percent down on a home will allow you the greatest choice of loan products, there are currently mortgage loan programs in place that allow you to put as little as 3 percent down or even less. A conversation with your mortgage lender will help you determine how much you need to save to get the loan product that is best for you.
The Boehmer Team Helps Homebuyers Get Homes
The Boehmer Team has years of experience helping homebuyers find and purchase the home of their dreams. If you have questions, contact The Boehmer Team any time for expert advice. They can direct you to reputable local area lenders and loan officers or share more ways their clients have found the best lender to meet their mortgage needs.