St. Louis Mortgage Checklist – Information Needed For the Loan Process

June 21, 2016 By Sean Zalmanoff

Our St. Louis mortgage experts are here to make the home loan process easy and simple for you!

Whether you are buying a home or refinancing a property, there are a lot of steps in the process. It can seem overwhelming but our team is here to help. The following information will help keep you on track.

Mortgage Checklist

You want your mortgage application process to go smoothly, and so do we! You will need to gather certain information during the home loan process.

The following information is generally required:

Social Security number
Current pay stubs or tax returns for the past 2 years if self employed
Two months of bank statements
Two months of investment account statements
Life insurance policy (if applicable)
Two months of retirement account statements (if applicable)
Make and model of the cars you own
Auto loan information
Credit card information
Any personal loan information

If you already own real estate, you will need:

Mortgage account info
Home insurance information
Information on home equity account (if applicable)

The Sean Z Team prides itself on making the home loan process simple, straightforward and fast in the St. Louis area. Our highly experienced team of mortgage experts can help you take the first step toward the best financial solution for you and your family.

St. Louis Mortgage Experts

We study current interest trends daily so that we are always up-to-date not just with what’s happening now, but with what may be happening 6 months from now. Our goal is to get you locked into the best mortgage rate available for the loan that is right for your needs.

For all of your refinancing questions and concerns, trust our team! Call us today at (314) 361-9979 or fill out our online contact form.

How Will the Mortgage Insurance Reduction Affect You?

February 26, 2015 By Sean Zalmanoff

Homeowners may save thousands of dollars on their home mortgages!

In January, the Federal Housing Administration (FHA) announced a policy change that could save homeowners thousands of dollars on their home mortgages. The annual personal mortgage insurance (PMI) premiums will be reduced by 50 points.

What is Personal Mortgage Insurance?

Personal Mortgage Insurance (PMI) is an added safeguard for financial institutions who loan money for housing with little investment from the buyer. Generally, PMI is required when the down payment amount is less than 20% of the property value. The insurance premium is added to the base value of the mortgage and paid monthly along with the premium and interest.

In an effort to ensure responsible lending to creditworthy borrowers, the annual rate for PMI will drop to 0.85% from 1.35%. This may also be beneficial for renters to find housing at a lower monthly fee. For the typical first time home buyer, the reduction in PMI could mean as much as a $900 savings each year.

Will This Change In PMI Policy Affect Those Who Already Have a Mortgage?

For those homeowners who have recently obtained an FHA, they will see an immediate change in their monthly mortgage payments. The savings will amount to $41.67 per every $100,000 borrowed. When you consider that amount applied to the number of months a homeowner is obligated to make the PMI payments, the savings from the reduction are significant. Speak with Sean Z Mortgage today to find out if refinancing your existing mortgage will give you access to the reduced PMI rates.

This reduction is not only a positive move for the homeowner with an FHA loan, it is an excellent move to help in stimulating the housing market. The one criticism that these types of loans have traditionally received was the high insurance premiums that came with the advantage of a low down payment. With this reduction in rates, a home owner can put down 5% or 10% and not have to pay for that benefit with high insurance premiums.

Can This Change Help You Become a Missouri Homeowner?

If you have been making plans to buy a home in Missouri but do not think you are financially ready, bring your concerns to the Sean Z mortgage team who can help you make a viable plan to home ownership and even help you decide if you are ready now. There are a variety of FHA loans available and you may qualify for one right now.

With some FHA loans, you can be approved with a deposit as low as 3.5% and a credit score of 580. That is a big difference from the 640 or better that many banks insist on. Closing costs are also a concern with a first-time home buyer, but with some FHA loans, the seller is allowed to pay up to 6% of that cost. This could give the buyer extra money to cover the costs of moving and setting up a new home.

This is big news for homeowners and the real estate market! By lowering this premium payment, having a house of your own may finally seem like an attainable goal. Call USA Mortgage today at (314) 361-9979!

Pros and Cons of a Reverse Mortgage

January 12, 2015 By Sean Zalmanoff

A reverse mortgage is a financial product that allows a homeowner to convert home equity into cash.

A reverse mortgage is an option available to homeowners who are at least 62 years old. A reverse mortgage offers them a good way to finance their retirement. They can use this money to cover healthcare expenses, pay for home improvement, or pay off an existing mortgage. A reverse mortgage provides a line of credit or fixed monthly payments without the need to repay a loan each month. However, before choosing this option, it is important to understand the pros and cons. What can a reverse mortgage do for you?

How a Reverse Mortgage Works

In a traditional mortgage, you borrow money from a lender and repay it in monthly payments while you gradually build up equity in your home. On the other hand, in a reverse mortgage, a lender pays you a monthly sum and gradually purchases the equity in your home. You retain the title to the property and it acts as a security for the loan. The loan is repaid when the owner passes away, sells the home, or the home is no longer the primary residence.

Pros of a Reverse Mortgage

You choose how you receive the cash, for example, a regular monthly installment, a single lump sum, a line of credit, or a combination of any of these methods.
Irrespective of how you receive the cash, you do not make payments as long as you live in the home as your principal residence.
There is no minimum income to qualify.
According to the Federal Trade Commission, if you receive more cash than what your home is actually worth, you will not owe anything more than the value of your home.
Cash advances are non-taxable.
You remain the owner of the home.
Cash advances have no affect on Medicare or social security benefits.
After lender fees are paid and the home is sold, the owner receives any equity left in the home.

Cons of a Reverse Mortgage

You need to be 62 years or older more to qualify.
You must go through compulsory mortgage counseling and you will have to pay for it.
Closing costs and loan origination fees can be quite high.
You may have to pay monthly servicing fees for the term of the loan.
Reverse mortgages are usually variable interest rate loans.
The debt increases with time as interest is added to the balance.
There are limits on the amount you can borrow during the first year.
There are limits on the mortgage you can qualify for.
If you fail to pay homeowner’s insurance, taxes, or any other expenses, the loan can become due.
With a reverse mortgage, you lose the equity in your home and you are left with fewer assets.

The decision on whether you should apply for a reverse mortgage should be made after considering the pros and cons carefully. The Sean Z Mortgage team can help you weigh all the factors before committing to a reverse mortgage. If the terms of a reverse mortgage does not fit with your needs, Sean Zalmanoff can help you with other options. Call Sean Z Mortgage at (314) 361-9979.

4 Things Every Home Buyer Should Be Asking Themselves

January 7, 2015 By Sean Zalmanoff

Purchasing your first home can be both an exhilarating and daunting experience.

Even though here are professionals to help you make the right decision, you will need to do some homework before you actually go house hunting. In this post, we will discuss the basics of preparing for a first-time home purchase. These tips will come in handy and will help make your life simpler when you begin the decision-making process.

What Are Your Long-Term Goals?

A first-time home buyer will need to determine their long-term goals and how owning a home fits into those plans. Some homebuyers may want to stop paying rent and instead pay a mortgage for their own home, while others may decide to buy a home for independence and enjoy becoming a property owner. Consider these questions to narrow down your homeownership goals.

What Type of Home Will Suit Your Needs the Best?

When you decide to purchase a residential property, you will have several options to choose from, such as a townhouse, a single-family home, a multi-family building, or a condo. Each of these options has its own pros and cons and a buyer can make a choice depending on their homeownership goals. A fixer-upper may be a great choice if someone wants to save money on the purchase price and has the time and money to complete the renovations to turn the house into a dream home.

What Specific Features Are You Looking for in Your Ideal Home?

Your home will be one of the biggest investments you will ever make. Make sure that you get the most out of the money you invest. Make a list of the specific features you want in a home. Include your basic desires such as the neighborhood, size, and even details such as the kitchen and bathroom layouts and appliances you would like in your home.

What Can You Afford?

Before you go searching for your new home, it is important that you have an idea of how much mortgage you qualify for. The Sean Z Mortage Team can help you decide how much you qualify for based on your income, credit history, and other factors. Your monthly installment payments are not the only cost associated with a home purchase. You will also need to include the cost for a down payment, property taxes, insurance costs, closing costs, and repair and maintenance costs.

The Sean Z mortage team looks forward to helping you own your first home. We work with top-rated real estate agents who will help you find and choose a home. Our unique “TBD Mortgage Approval Program” will help you budget for a mortage loan and complete the paperwork, even before you start shopping for your home. We will guide you through the entire process and save you from any potential pitfalls. Call us today at (314) 361-9979!

5 Things Required for Pre-Approval

December 15, 2014 By Sean Zalmanoff

A pre-approval letter by a lender is one of the most beneficial documents that will help you in your quest for buying a home.

When you meet with Sean Z, you can discuss loan options and budgeting structure. We will be able to check your credit rating and inform you of any potential problems. Our unique “TBD Mortgage Approval Program” will give you confidence while looking for your dream home in St. Louis.

Obtaining a Pre-Approval Letter

As a home buyer, you should first of all be comfortable with the repayment structure of the loan you are applying for. You should never aim for the top of your spending limit from the very beginning. Many home sellers look for a pre-approval letter from the lender of the prospective buyer, since this document proves your ability to finance the purchase. The five documents that your lender requires prior to issuing a pre-approval letter are given below:

1. Proof of Income

Gone are the days when loans were sanctioned without any verification or documentation. Proof of income can be provided by your W-2 statement of the past two years which include your payment statements, additional income statements like income from alimony or bonuses, and your tax return statements of the past two years.

2. Proof of Assets

A lender will require your bank statements and investment statements to ascertain that you have the required capital to make the down payment and closing costs plus some funds in reserve. FHA loans require a down payment of just about 3.5 percent of the total cost, whereas down payment for a conventional loan is generally 10 – 20 percent. If you receive funds from a friend or a relative for helping you in making the down payment, you should also have a gift letter from the friend or relative stating that the said amount is a gift and not a loan.

3. Good Credit Score

The borrowers with the highest credit scores get loans at the lowest interest rates. A credit score of 740 or above gets you the lowest rate of interest on your home loan. Borrowers with a credit score of 580 and below are often required to pay a higher amount as down-payment. A credit score of 620 is preferred for an approval of an FHA loan.

4. Verification of Employment

Lenders are not always satisfied by the pay stubs provided by you. They may also call your employer to confirm your employment and what is your salary package. Borrowers with stable income are generally preferred by lenders as they are sure to recover their capital.

5. Documentation

A copy of your drivers’ license and social security number along with your signatures will be required to pull up your credit report. You should be prepared to provide any additional paperwork that may be required for a smooth mortgage process. So keep these documents ready before you go shopping for a mortgage.

Call the Sean Z Mortgage team at (314) 361-9979 today!

Top Things Every Couple Should Consider Before Investing in a House

December 2, 2014 By Sean Zalmanoff

Purchasing a property should be a well thought out decision for a couple.

The Sean Z mortgage team knows that buying a home is an event you have been dreaming of for years and we want to make it as enjoyable for you as possible. We know all there is to know about obtaining financing for this major purchase and are more than happy to pass our knowledge onto you. Here are some key considerations.

Pick the Right Mortgage

Today, choosing a mortgage is easier than it was a few years back, because the high risk mortgages that catered to unqualified borrowers are not available anymore. The choice available for borrowers today is between an adjustable and fixed-rate mortgages, choosing the right one based on their financial circumstances. With our “TBD Mortgage Approval Program”, you can be confident that you qualify before the search even begins.

Couples with dual incomes may secure a mortgage more easily. If a couple is looking at a low risk mortgage, then a fixed rate mortgage is the best option as the interest rate will remain constant throughout the duration of the loan. On the other hand, in case of an adjustable rate mortgage, the rates tend to fluctuate with the market conditions, and you may expect your monthly payouts to be low; however, it is likely that the rate would increase over time. So, your present and potential future earnings should be the key deciding factor while choosing between mortgages.

Location and Development

Your home is one of the biggest investments that you will ever make in your life, so it is important that you choose a property whose value is expected to appreciate over time. In deciding the value appreciation, location plays a huge role. If the demand is high in a particular area, but the available houses are few, then your investment may be secure.

Another important consideration is whether there is any scope of development or expansion of the home as an individual property. If you buy a house that meets both these criteria then you can expect to fetch a good price if you wish to sell it in the future.

Practical Considerations for the Future

Even though choosing the right mortgage type and good location are two extremely important considerations for home buyers, there are other important things that cannot be overlooked. Today, you might be a couple spending most of your time at work, but a few years down the line you may plan a family and you will need space for a growing family. You will need schools and play areas in close proximity to your home. So, while making a decision today, you must keep one eye on your future needs as well.

The Bottom Line

Couples have certain advantages over individual buyers when it comes to purchasing a home and securing a mortgage. However, it is extremely important to consider your financial circumstances and future plans when making this decision.

Call Sean Zalmanoff with USA Mortgage at (314) 361-9979 today!

Lending Rules Are Easing as Housing Recovery Delays

December 2, 2014 By Sean Zalmanoff

Many Americans desire the security of home ownership. Hopefully with these new changes, that opportunity can become a reality for more Americans.

In the early days of the housing crisis, a proposal was drafted that would make lenders hold a stake in the loans that they sold. This specifically applied to mortgages that had a down payment that was less than 20 percent. The idea that the government maintained was that this would encourage more cautious lending.

However, this plan was opposed by both the industry and the housing advocates. Both sides felt that this plan would lock too many people out of the housing market because lenders would be forced to raise interest rates and fees on loans with low down payments.

A New Proposal

In October of this year, a milder version of the plan was decided on by six different agencies. These changes are in response to the fact that the housing recovery has taken a lot longer than it was expected to. It has been acknowledged that the tough regulations were forcing lenders to only lend to those that had exceptionally good credit. This new proposal will hopefully encourage lending to a wider population of borrowers.
In light of this new proposal, both Freddie Mac and Fannie Mae have said they may lower the down payment requirements to 3 percent. The FHA may also be on board to lower the fees that they charge borrowers.

This also means that banks will not be required to hold a stake in the loans that have less than 20 percent down. They will only have to do so on loans where the borrower has a high debt-to-income ratio. While these changes will take effect in about a year, they will not apply to Fannie Mae, Freddie Mac, or the FHA. This plan affects loans that have been sold to private sectors, agencies that do not have government backing.

Owning a Home in St. Louis

The history of home ownership in America is rich. Prior to the Great Depression, a minimum of 50 percent was required as a down payment. However, after WWII, the government wanted to encourage home buying by significantly lowering the down payment requirements. They dropped to as little as 5 percent down for certain loans that qualified. The amount of people who could now qualify and own a home soared. This trend lasted for many decades.

Owning a home is still something desired by many Americans. Hopefully with these new changes, that can become a reality for more Americans.

Sean Z has always made every possible effort to secure loans for St. Louis residents that they could afford. Having these new guidelines in place only solidifies our standard practices and gives borrowers more incentive to seek our TBA mortgage approval program. Call us today at (314) 361-9979.

How to Shop For the Best Mortgage Rate

November 18, 2014 By Sean Zalmanoff

Every home buyer wants to know – how do I get the best mortgage rate?

A home is probably the most expensive thing that you will ever buy in your life, and due to the huge price tag it comes with, you will certainly require a mortgage. This makes it necessary for potential homeowners to evaluate the different kinds of mortgages available and look for the best mortgage rates. The following steps from Sean Z Mortgage can be used to find the best mortgage to purchase a house.

1. Improve Your Credit Score

A credit score is used to determine whether a potential homeowner is qualified for a loan or not. A high credit score can get a potential homeowner a better mortgage rate. It is essential that you monitor your credit score properly.

2. Consider Various Types of Mortgages

The different kinds of mortgages available are as follows:

Fixed-rate mortgages have a fixed interest rate for the entire duration of the loan. This allows potential homeowners to forecast their total expenses across the term of the loan.
Adjustable-rate mortgages are mortgages where the interest rate constantly changes. The initial interest rate is normally low; however, it may increase over time. It is best for homeowners who intend to pay off their loan before the start adjustment period or for those who anticipate the interest rates to come down in the future.
First-time home buyers may qualify for FHA loans. These loans feature low down payments and strict borrowing requirements. FHA-financed homes require the borrower to live in the house and not offer it for rent.

3. Getting In Touch With a Lender

A number of lenders offer mortgages to potential homeowners. Since interest rates keep fluctuating, lenders may offer promotions for some loan products. Potential homeowners should consult and compare the rates offered by various lenders. They should also compare the rate differences in short-term and long-term loans. Sean Z offers a unique TBD Mortgage Approval Program. We will take the time to match you with the best mortgage loan product available that you can qualify for before you even have a house in mind.

4. Consider Other Expenses

Loans with the lowest rates may carry high loan fees, so they do not always make the best choice. It is essential to evaluate all associated fees so as to obtain the best deal for the house you aim to purchase. Points are fees that the buyer normally pays to a lender and are linked to the interest rate. As the number of points increase, the interest rate will decrease. People aiming to stay in their homes for a long time may consider points to get a lower interest rate on their loans.

Call Sean Z Mortgage at (314) 361-9979 to start your search today!

VA Loans Do a Great Job of Serving Those Who Have Served Us!

November 11, 2014 By Sean Zalmanoff

VA loans continue to provide cost-effective and accessible loans to military men and women and their spouses.

In today’s market there are many obstacles for a home buyer when it comes to applying for a mortgage. Many potential home buyers have been pushed out of the market altogether because of the stricter credit and income requirements. However, throughout the housing market meltdown, the VA loan program has done a great job of serving those who have served us! It has continued to provide cost-effective and accessible loans to military men and women and their spouses. Understanding how a VA loan works is the first step toward getting into your dream home. Equally important is understanding what qualifications you need to meet to be eligible for a VA loan.

Know the Benefits

Knowing what the benefits are of a VA loan is the first step. These types of loans are unique in that they do not have certain restrictions that most people have with conventional loans. Here are 3 major benefits:

No down payment
No PMI (Private Mortgage Insurance)
Competitive mortgage rates

The VA mortgage offers 100% financing to veterans and their spouses. In addition, veterans do not have mortgage insurance on the loan. There is a funding fee that ranges from .5 to 3.3%. The funding fee is waived for a veteran that receives a minimum of 10% VA disability compensation.
Because the VA mortgage gives lenders a greater degree of flexibility and safety, it offers more competitive rates than non-VA loans.

How to Qualify

Military men and women can qualify for a wide range of benefits and chief among these is an opportunity to take part in the Veterans Affairs Home Loan Program. While it is designed specifically for those who have served their country, there are a few requirements that they must meet. One of the following conditions must be met:

Served 90 consecutive days of service during wartime.
Served 181 days during peacetime.
More than 6 years in the National Guards or Reserves.
A spouse of a service member who died while in the line of duty.

Where to Start

Sean Zalmanoff has over a decade of experience helping St. Louis veterans get approved for VA mortgages in St. Louis. He can approve your mortgage prior to finding your new home with his one of a kind “TBD Mortgage Approval Program”, so you can shop with confidence. If you would like to find out what VA loan you are eligible for, call Sean Zalmanoff: USA Mortgage at (314) 361-9979 or apply online today!

What Can a Reverse Mortgage Do For You?

October 14, 2014 By Sean Zalmanoff

Take advantage of all of the hard work you have put into your home.

A reverse mortgage allows you to tap into the equity of the home you have worked hard for and use the money for repairs, medical expenses, or even a trip around the world.

What Is a Reverse Mortgage?

With a typical mortgage, monthly payments are made to the lender to pay the loan back. With a reverse mortgage there is no obligation to pay the money back until you no longer live in the home. The money you receive is tax free and there are typically no income restrictions. The amount you receive is entirely dependent on the value of the property. A Home Equity Conversion Mortgage (HECM) is part of a federally insured reverse mortgage program that is backed by the U.S. Department of Housing and Urban Development (HUD). These loans are widely available and have no income or medical requirements.

Qualifying For a Reverse Mortgage

To qualify you will first be asked to meet with a financial counselor from an independently operated, yet government approved, housing counseling agency. The cost of the loan and its financial implications will be explained to you in detail. Follow this link for FAQ’s about reverse mortgages. You will also be shown other types of mortgage products to help you understand the differences in structure and cost. If you choose an HECM mortgage, you will be given four options to choose from.

Term loan – This allows you a fixed cash amount for a specific amount of time.
Tenure loan – Fixed monthly cash advances for as long as you are living in the home.
Line of credit – This gives you more flexibility as you can withdraw the amount you want anytime you want. This is a good option if you plan on using the loan to fund a trip or make renovations on your home.
You may also choose a combination of the two.

How to Use the Funds From a Reverse Mortgage

No matter which form of payment you decide on, the money is yours to spend however you see fit. The amount you receive is based on how much your home is worth minus any existing mortgages you may still be paying on it. The amount you receive is not taxable and will have no bearing on any aid you receive, such as social security or medicare. The title to the house remains in your name and there is no obligation to make any repayments. The full amount you borrowed will be paid once you no longer use the home as your primary residence.

A mortgage representative from Sean Z Mortgage can help you go over all of the points to make sure that this is the best option in your circumstance. Many Missouri homeowners use this as a way to supplement their income after retirement in order to continue with the quality of life they are accustomed to. You have spent many years working on building equity into your home. Now is the time to let your hard work pay off for you!