St. Louis Mortgage Lender

If you think the time has come to buy your home, our Society Mortgage loan officers will be happy to help you get the best mortgage deal for your finances. With over 25 years of experience as a mortgage company, we have the knowledge and expertise to give you the help you need.

Once you have provided us with the required documentation, we can help you with pre-approval and explore with you all the mortgage loan options available to you. Even if you don’t have an excellent credit score, there are still mortgage loans for your case. Trust Society Mortgage, the best mortgage lenders in the St Louis area, to start you on your way to homeownership and help you get through the home-buying process. We can also help you if you are looking to refinance your mortgage loan.

Basics About Mortgages in St. Louis

If you are a first-time homebuyer, you may find mortgage applications daunting. Here is a good mortgage broker step-by-step guide to the home loan process.

Pre-Approval

Pre-approval gets you one step closer to home buying. Many sellers appreciate a pre-approval letter because it gives them the security that they can get a mortgage.

Pre-approval means that a lender assesses your financial situation such as your credit score, income, and overall debt ratio, and tells you how much money they would be willing to lend you toward a new home.

Pre-approval is an excellent start because you know how much money you can borrow, and this narrows down what homes you can buy. It also reassures real estate agents that you are serious about buying a home.

Application

With your pre-approval, you can start looking for a home around St. Louis with your real estate agent. When you find the one that fits your budget and needs, you can formally apply for a mortgage.

The application includes detailed financial information such as income, assets, employment history, and the details of the property you are looking to purchase.

Processing and Underwriting

The loan officer checks the information you have provided and orders an appraisal of the property to verify that the amount they are lending you matches the actual value of the home.

During the processing, you may be asked to give additional documentation to support your application. The lender and the underwriter want to be sure that you will be able to repay the mortgage without stretching yourself too thin.

Closing

Once your lender has approved your mortgage, you can close the deal.

During closing, you sign all the necessary paperwork, and the home loan is finalized. You sign for the ownership of the home as well as the mortgage agreement. Congratulations — you are now the proud owner of a home in St. Louis.

Repayment

The repayment period depends on the type of mortgage you have. You either got a 15 or a 30-year mortgage. Repayment begins after closing and you make one monthly payment. Initially, you are paying interest but as the months pass by, you are repaying both principal and interest. After the mortgage is repaid, the home belongs to you.

Major Types of Loans in St. Louis

Conventional Loans

Conventional loans are mortgages that are not insured or guaranteed by the government. They are geared toward people with high credit scores and good incomes and require a larger down payment. If you can afford these terms, you benefit from lower interest rates and favorable loan terms that help you repay your mortgage more easily.

FHA Loans

FHA loans require a minimum down payment of 3.5% and are more forgiving with credit requirements. They include mortgage insurance premiums which cover the lender in case of default. This makes FHA home loans more accessible for people with lower incomes.

FHA 203(k) Loans

If you have your eye set on a fixer-upper, you can apply for an FHA 203(k) loan, a special type of FHA loan that gives funds for the purchase of the home and its renovation. You can also get an FHA 203(k) loan if you have a home improvement project.

VA Loans

VA mortgages are backed by the U.S. Department of Veterans Affairs and are geared toward military service members, veterans, and eligible surviving spouses.

These loans come with no down payment requirements and offer competitive interest rates, and no private mortgage insurance (PMI). VA loans support veterans buying a home with more accessible mortgage terms. It’s a way to thank our veterans for their services to our country.

USDA Loans

The Department of Agriculture backs USDA loans, which are available for homes in eligible rural and suburban areas. The goal is to help rural areas increase their populations and build up their communities.

USDA loans help low- to moderate-income borrowers who may lack the credit score or income to qualify for a conventional loan. Many people struggle to save for a down payment and USDA loans often require no down payment, which is helpful. They are also more lenient if your credit score is not outstanding. If your work and lifestyle match rural life, then a USDA loan could be a great option for you.

Jumbo Loans

Jumbo loans are non-conforming mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.
Borrowers who want to finance high-value properties and need large loan sums apply for jumbo loans. These loans, because of their high risk, require high incomes and low debt-to-income ratios as the lenders want to be sure you will be able to repay them.

Adjustable and Fixed Interest Rates

Your mortgage lenders in St Louis will offer you adjustable or fixed interest rates. It’s up to you to decide which fits best your finances, income, and life projections.

Fixed-Rate Mortgages

Fixed interest rates remain the same until the end of your mortgage. You pay the same amount of money every month, without any increases or decreases. Fixed rates are great for people who want to have security in their lives and don’t like unexpected increases in their monthly payments.

If you plan on staying in your home for many years to come, fixed rates are often better because they give you certainty. However, they are usually higher than adjustable rates. You have to balance your need for security against potential savings when rates go down, which you won’t benefit from. Of course, you are also protected from unexpected hikes in rates.

Adjustable-Rate Mortgages (ARMs)

Adjustable-rate mortgages (ARMs) follow the benchmark interest rate or index. If it goes up, the mortgage rate goes up; if it goes down, the mortgage rate follows down.

ARM mortgages start with a short period of fixed rates and then the mortgage shifts to adjustable rates. If you don’t want to stay in your new home forever, adjustable rates are great because you benefit from the fixed rate at the beginning and can sell before moving to the adjustable period.

Length of Loan

15-Year Mortgages

If your income and debt ratio can support paying higher monthly payments, then you should choose a 15-year mortgage, whereby you repay your mortgage within 15 years. Because you repay your mortgage quickly, you end up paying less in interest charges and you also gain from lower interest rates.
If you plan to pay as little as possible in interest, that’s the right loan length for you. With a 15-year mortgage, you will also build home equity sooner, which you could use for home equity loans or a line of credit.

30-Year Mortgages

Most people choose 30-year mortgages because they are easier to fit within their budgets.
Monthly payments are lower but spread over a longer period. You end up paying more in interest charges but 30-year mortgages are more accessible and less stressful. People who have bought their forever home often choose 30-year mortgages.

Society Mortgage for Your St. Louis Home

St. Louis is a thriving city and a great place to buy a home. If you are looking for one of the best St Louis mortgage companies, contact Society Mortgage to get a great deal on your mortgage. Backed by more than 25 years of experience, we offer our customers excellent mortgage rates and professional advice so that they can own their dream home.

Contact today our mortgage loan company for pre-approval so you can start looking for homes around St. Louis knowing you have the best mortgage broker St Louis specialists by your side!

Frequently Asked Questions

What is the City of St. Louis Down Payment Assistance Program?

The City of St. Louis Down Payment Assistance Program gives financial aid to first-time homebuyers who need help covering their down payment and closing costs. The program offers forgivable loans that don’t need to be repaid if the home buyer remains in the home for a certain period, usually five years. The program is designed to make homeownership more accessible to low- and moderate-income individuals and families by covering the costs on top of the mortgage loan value.

What are the income limits for down payment assistance in St. Louis?

Income limits for down payment assistance programs in St. Louis depend on the program and household size. These programs are aimed at low- to moderate-income households, with limits set based on the area’s median income (AMI). For example, a household earning 80% or less of the AMI may qualify for certain types of assistance.

Does St. Louis offer grants for home repairs?

Yes, St. Louis offers grants and low-interest loans for home repairs, particularly for low-income homeowners. Programs like the St. Louis Home Repair Program provide financial assistance to eligible residents to make essential repairs, improve safety, and bring homes up to code. These grants and loans are often targeted at improving living conditions such as roofing, plumbing, and electrical systems.