How to Get a Home Mortgage in Missouri

Any time is a good time to get a Missouri home mortgage loan, as they traditionally have low interest rates and the lowest closing costs in nation. Here are some ideas on how to get a mortgage for your new home in the “Show Me State.” Follow these steps to get a Missouri home mortgage loan.

Instructions

Difficulty: Easy

1. Acquire a copy of your recent credit report, and review it for any mistakes. Clear up any mistakes before you apply for loans.
2. Shop around for friendly mortgage rates with credit unions, banks, mortgage brokers and online lenders. However, by Missouri law, online lenders must physically work in the state.
3. There are several homeownership assistance programs available from the state of Missouri and the federal government for low-income buyers, single parents, senior citizens, veterans, rural home buyers and the disabled, such as the First Place Loan program and the Rural Down Payment Assistance Program.
4. Visit these websites for further information on government assistance, and see if you qualify: • Missouri Homeownership Overview • USDA Missouri Rural Development programs • Missouri Homeownership Assistance programs
5. Choose the financing option right for you from your selected lender and get pre-approved for the loan. They will require you present them with documents like tax returns, proof of employment, investment information, and other lender-specific documents.
6. Contact a real estate agent. When exploring your home options, a real estate agent can give you valuable information on local zoning laws, the trends in the local real estate market, and neighborhoods befitting your desires as a homeowner.
7. Submit a formal offer on a home, and complete the loan process with your lender.
8. Pay all relevant closing, realtor and legal fees. The lender will provide you with a schedule for repayment of the mortgage loan.

Tips & Warnings

• Remember that even one quarter of a percent difference in a home loan rate can mean thousands of savings over a 30-year mortgage
• If you are being coerced into buying a home you really don’t want, be suspect of the real estate agents motives.
• Have your prospective home professionally inspected. Discover problems that may exist before the deal is finalized.
• Before signing any documents make sure that you thoroughly understand them.
• No reputable lenders will ask you to pay to apply for a loan.
• Have an attorney review any documents before you sign them, as there are many unethical lending and loan scams. Beware of predatory lending, where lenders intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit.
• Make sure that the home title is clear of liens before you purchase it.