Guide for a First Time Home Buyer in St. Louis

March 23, 2016 By Sean Zalmanoff

Start making those first steps to putting rent payments behind you and buying that first home you have always dreamed of.

There are so many benefits to owning your own home! As a homeowner, you will experience the security of owning the house that you live in. You’ll no longer be wasting money each month on rent payments. You will be able to create a home that meets your needs and desires.

In addition, you will be able to take advantage of tax benefits, while building home equity and creating a stronger credit history.

Buying your own home is likely to be the single largest investment you will make in your lifetime and this can seem like a daunting task. The Sean Z Team knows that this is an event you have been dreaming of for years and wants 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.

First Time Home Buyer

Many first time home buyers end up being surprised at the end of their search to find out that they can’t qualify for the home of their dreams that they have spent months looking for. They think they need to find a house to buy before getting the mortgage paperwork done. Don’t let this happen to you.

In order to avoid this scenario, we offer a variety of different mortgage programs aimed at first time home buyers and with our “TBD Mortgage Approval Program” you can be confident that you qualify before the search even begins.

What is the TBD Mortgage Approval Program?

In the mortgage world 95% of what we do has nothing to do with the house. All we need to do is get an appraisal and the title work and, as long as the house you choose appraises and the title is clean, you will be able to get a loan.

The process typically goes as follows:

Fill out the application.
We submit this to underwriting.
Once approved, you’ll have 6 months before you have to have a house under contract.
Search for a new home with the confidence of a “Cash Buyer”

So we literally can do almost your entire loan without you having a house under contract.

First Time Home Buyer Mortgage Options

There are a wide variety of mortgage options out there for first time home buyers. At the Sean Z mortgage, we will take the time to find the right mortgage with a payment that you can afford. Some of the options include:

VA Loan
FHA 203B
FHA 203K
USDA Home Loans
Homestyle Renovation Mortgage
Fixed Rate Mortgage
Adjustable Rate Mortgage

Call the St. Louis Mortgage Experts

Sean Z and his entire team are proud to be a part of such a monumental milestone in your life and are dedicated to ensuring that it is the enjoyable experience for you that it should be.

Call us today at (314) 361-9976 or fill out our online contact form.

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!

4 Compelling Reasons To Be Pre-Approved For Your Mortgage

October 10, 2014 By Sean Zalmanoff

Why will a pre-approved mortgage help you successfully buy the home of your dreams?

Would you go to the supermarket to buy groceries without knowing how much money you had on your debit card to spend? Shopping for a new home without first knowing how much you will be able to borrow is doing the same thing. If you are on the fence about looking into Sean Z’s “TBD Mortgage Approval Program“, here are five reasons to help you reconsider.

Save Time!

Use your valuable time wisely; avoid looking at homes that you can not afford. With a TBD approval, you can be very specific with your realtor about the type of home you can afford, and insist that he or she save you time by only showing you homes inside of that price range.

Avoid Disappointment!

Use your TBD mortgage approval to make sure that you do not fall in love with a home that you simply cannot afford to buy. Instead, prepare for success by looking at a potential home that will turn into a realty!

Increase Your Negotiating Power!

You look better to a seller who is deciding between various offers when you have a Sean Z “TBD Mortgage Approval Program.” They know that the offer is not conditional based on financing since you already have it. Many home sellers in St. Louis have lost thousands of dollars waiting for a closing that never happens because the buyer can not get a loan approval. Use this to your advantage and make it a selling point when putting in your offer.

Save Money!

It just makes more sense to have your mortgage pre-approved before you start looking at houses. The stressful part of finding a loan is behind you and now you can enjoy the entire house hunting experience with peace of mind. You get to choose the right home already knowing it is at the right price.

The majority of the criteria needed for a home loan approval is dependent on the borrower, and their financial status rather than the house itself. Use this to your advantage by establishing a good credit history, saving money towards a down payment, and getting your Sean Z TBD mortgage approval before you begin searching for the new home of your dreams.

Call us today at (314) 361-9979!

Success Tips For the First-Time Home Buyer

September 24, 2014 By Sean Zalmanoff

Take the first steps toward home ownership in St. Louis with confidence!

You are about to embark on a journey that is exhilarating! Having that special home to call your own is a long-time dream for many. When you start the process on the right path, you can make the entire experience a joyful one.

Have Your Finances In Order

First, start off right by getting your finances in order. Work towards paying off any credit card debts and build a savings account for a down payment. You are also going to want to have cash on hand to help you when it comes time to turn your new house into your home.

Once your financial situation is in order, make an appointment with Sean Z Mortgage. You will want to see us first to find out how much house you can afford before you start making appointments for open houses. Our “TBD Mortgage Approval Program” will keep you focused only on those St. Louis homes that fit into your budget. The Sean Z Mortgage team will make sure to find the right product to suit your needs. There are special loan packages for certain circumstances, such as veterans, that you may qualify for.

Happy House Hunting

When you have your pre-approval in place you can begin the house hunt. Do your research to find out which St. Louis neighborhoods appeal to you and will likely work with your budget. Take into account schools, local taxes, and location in relation to your job. When speaking with a real estate agent be honest about your desires and the price range you are looking at. Nothing dampens the house hunting joy quicker than falling in love with a home that you find out you cannot afford.

Sean Z Mortgage Team

The experience for a first-time home buyer does not need to fraught with stress and disappointment if you follow the steps in the right order. With a “TBD Mortgage Approval Program” you can eliminate the stress and enjoy the process of getting to pick out the home you have been dreaming of.

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

Choosing the Right Time to Refinance Your Mortgage

September 23, 2014 By Sean Zalmanoff

Learn about the advantages of refinancing your mortgage.

Many St. Louis home owner’s have refinanced their mortgage as interest rates slowly tumbled downwards. This can be a money saving option. What are the advantages of refinancing your mortgage? When is the right time to refinance your mortgage?

Refinance Your Mortgage When Interest Rates Are Low

Refinancing your mortgage can lower the interest rate and therefore the monthly payments. You will reduce your monthly expenses and potentially save money on the life of the loan. To gain the most financial benefit of refinancing, consider changing the terms of the loan, such as a 15 or 20 year term. This will allow you to still finish paying off your home in the time projected and get the benefit that a lower interest rate will offer you.

Refinance Your Mortgage When the Value of Your Home Rises

When your home’s value increases, the equity can be used to fund major home renovations. It may be easier to budget one loan instead of two. Refinancing to improve your home and increase its value may make sense, especially when interest rates are considerably lower. You may then be able to recoup the costs when it comes time to sell the home.

Working With the Sean Z Mortgage Team

There are several options to consider when it comes to refinancing your home loan. Speak with the Sean Z Mortgage team at USA Mortgage about your short-term and long-term financial goals. We will help you have a clear understanding of your options, making sure you get the loan that is going to work best with your needs.

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

A First Time Home Buyers Guide to Closing Costs

September 18, 2014 By Sean Zalmanoff

Be confident purchasing your first home in St. Louis with this guide to closing costs.

The Sean Z Mortgage team is dedicated to educating potential first-time home buyers in St. Louis to be set up for success. This includes making sure you understand each step of the home buying process. For example, there are a number of fees to be paid when you are at the closing for your new home. These fees cover a variety of inspections, legal costs, and document generation. Once you apply for a mortgage, the lender is required to supply you with a Good Faith Estimate (GFE) of what these costs will be at your closing. This is an estimate and is a good guide to help you understand what you can expect. There are three different categories of items you will find in the closing costs of your new home.

Mortgage Fees

Mortgage fees are the charges to you by the mortgage company financing your home.

Lender fees and points – This is an upfront charge for obtaining and then processing the loan on your behalf. This fee is measured in points, with one point reflective of one percent of your loan. The more money you are borrowing, the more you may be paying in points.
Loan origination fee – This is payable to the lender for the work in evaluating your loan qualifications and preparing the necessary documentation for your loan.
Application fee – This is a separate charge for obtaining your current credit report and processing your loan application.
Appraisal fee – An appraiser will be retained to evaluate the value of the home you are purchasing. This third party charge will be included in the fees you are required to pay.
Property survey – A separate independent report is needed by a firm who will survey the property you are purchasing to ensure that any permanent structures on it are in compliance with St. Louis and Missouri laws and that the boundaries of the property are where the seller claims them to be.
Private mortgage insurance (PMI) – A type of mortgage insurance that protects a lender when less than 20% of the homes value is given as a down payment. The initial cost of this insurance will be payable at closing and monthly charges are added to your mortgage payments. You have the right to have this insurance removed once you have gained 20% equity in the home.
Homeowners insurance – As a mortgage holder you will be required to obtain homeowners insurance for the property. This protects the home and its contents in the event of a tragedy.

Transfer of Ownership Fees

There are separate fees that will cover the cost of a title search and insurance. This is done to ensure that the home you are buying is in fact owned by the seller. Along with the search, there also may be a charge for title insurance. This protects the lender and new owner in the event that something was missed during the search. The transfer of title is a legal process which may include separate attorney and document fees.

Government Fees

You may also be responsible to pay the local government for the transfer of ownership along with the local and state taxes on the property. In many cases you can ask that the property tax be included as part of your monthly mortgage payment, allowing the lender to be responsible for seeing that it is paid on time.

It can be hard work to try and sort through all of the charges associated with the closing of your new home. Sean Z Mortgage “TBD Mortgage Approval Program” will take the stress out of buying your first home in St. Louis!

Get Started Today! Call (314) 361-9976 Now!

St. Louis Foreclosures and Short Sales Decline

August 30, 2014 By Sean Zalmanoff

Refinance options are opening up to St. Louis homeowners who previously had lost value on their home during the housing crises.

The St. Louis housing market continues to improve. The owners of properties whose mortgage value is still greater than the home value are deciding to wait for the housing market to improve. A look at national numbers show the same trend, with a 15% decrease over all of the number of foreclosed homes for sale.

Reassessing the Value of Your Home

Distressed homes are those that are either facing foreclosure or being sold in a short sale. A short sale is when a homeowner makes an agreement to sell their home for a price that is not sufficient to pay off the balance of their mortgage. For those homeowners who were able to keep their home, now is a good time to have the value of it reassessed.

Home Values On the Rise

With a housing market that is favoring sellers due to a decrease in available property, home values are on the rise. The homeowners who are still holding the deed to a distressed property may now find themselves able to break even or even make a small profit on their home. Now is a good time to talk with a lender like Sean Z to see which financing options are now open to purchase a new home.

TBD Mortgage Approval Program

If a potential St. Louis home buyer is unsure how much home they can actually afford, programs like Sean Z’s TBD mortgage approval program will give them an idea of what type of home they should be looking at in their price range. More importantly, with a TBD approval, the buyer is able to make an offer immediately, without having to wait for bank approval.

Expect to see short sales and foreclosures in St. Louis continue to diminish as more and more homeowners who chose to ride out the storm are now able to reap the benefits of an improved housing market. Mortgage rates are still low, but are predicted to continue to rise, making now the optimal time for homeowners to look at the value of their property again to see if it has risen above their mortgage balance allowing them to finally sell without a major loss.

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

Applying For a VA Loan: Less Red Tape Than You Think

June 27, 2014 By Sean Zalmanoff

If you have sacrificed a portion of your life to ensure that the rest of us can continue to live freely in ours, then you are entitled to a few perks.

Especially when it comes to securing a home for you and your family in the country you fought so hard for. A VA loan is remarkably easier to apply for and to get approved for than most veterans realize. Take advantage of this program and allow yourself the joy of home ownership.

How Easy Is Applying For a VA Loan?

The idea of a ton of paperwork could be what is holding you back from applying for a VA loan, but once you start the process you will be amazed at how simple it is. It is even easier than applying for a traditional loan. First of all, there is no down payment requirement for a VA loan, nor is there any requirement for PMI insurance. This type of insurance is usually applied to loans where the buyer has put little or no money down on the house first. Not having that insurance will save you thousands of dollars in fees over the life of your loan.

Another benefit to a VA loan is that you are still entitled to competitive mortgage rates. This is not a bait and switch program where you are lured in by incentives only to realize that your rate will be significantly higher than on a traditional mortgage. With a VA loan, you are entitled to shop around for the best deal on an interest rate.

How To Apply For a VA Loan

There are five basic steps to follow if you wish to take advantage of the VA mortgage:

Obtain a certificate of eligibility. This is easily done by filling out VA Form 26-1880, which should be readily available at your local VA office or even online. This certificate lets your lender know what you are entitled to as a veteran.
Choose the perfect home for your family and sign a purchase agreement.
Ask for an appraisal on the home from the VA. The lender will often take care of this for you.
Apply for your mortgage through the lender. This can be going on simultaneously with the home appraisal to help expedite the process. If the lender is VA approved like Sean Z, then the loan can be approved before the VA has a chance to review the loan application so long as the appraisal is complete.
Close on the home and move your family in.

In addition to the perks mentioned above, a VA loan can be up to 100% of the assessed value of the home. In addition, there is generally a limit on how much of the closing costs the buyer may assume.

A VA loan is simply a guarantee to a lender that the loan is protected by them in the event that the buyer is unable to make payments. It is a win-win mortgage for everyone involved and one that should be used by all of those brave men and women who are entitled to it. Call USA Mortgage at (314) 361-9979 for more information.

Photo credit: Chris Bohn via Flickr

How Information From the Fannie Mae Survey Can Help Save the Economy

June 23, 2014 By Sean Zalmanoff

According to a recent survey conducted by Fannie Mae, the majority of respondents still believe that the economy has not fully recovered.

This belief is having an adverse effect on home sales in St. Louis and across the nation. Springtime is usually greeted by an influx of anxious consumers wanting to buy a home. Despite low interest rates, that trend has been significantly lower this year than in the past. The Fannie Mae survey shows that people are still reluctant to buy a home, citing the lagging economy and a decrease in household income. Only 21% of those surveyed were able to say that they are making more money now than they were this time last year.

Fluctuations In the Economy Still a Huge Concern

Chief economist and senior vice president of Fannie Mae, Doug Duncan, was quoted as saying that it is these concerns over economic stability and income growth are taking its toll on what should be the busiest time of year for a St. Louis real estate agent. Despite a trend in lower interest rates over the last two years, the Fannie Mae survey shows that fluctuations in the economy are still a huge concern for St. Louis residents and that it is these concerns that are holding them back from buying and selling homes.

National Housing Survey

Each month, Fannie Mae puts out a National Housing Survey to gauge consumer’s feelings about housing and the state of the economy. Since most of the questions are geared towards real estate, homebuilders use the information to ascertain their risk at the present time and mortgage REITs will use the data to forecast prepayment speeds and the effect consumer sentiment will have on the economy. The monthly phone survey polls 1,000 random Americans and asks them over 100 questions whose answers are used to track changes in consumers attitudes.

It is surveys such as these that aide realtors and lenders both to bring in potential homebuyers and help give the housing market in St. Louis the boost it desperately needs. Knowing the fears and concerns of the average consumer allows lenders like Sean Z to make provisions and ease the minds of their clients before the application process even begins.

Will Housing Prices Go Down Payment?

For example, this month’s survey shows an increase in the amount of people who believe that house prices will go down over the next few months. In knowing that this feeling could be the cause of a consumer’s reluctance, the lender can take steps to show that the low interest rates being offered right now will offset any possible savings they could receive if they wait those twelve months for home values in St. Louis to drop again.

Professional lenders and real estate agents are looking over this information carefully to find ways in which to entice new consumers into home ownership. One of the best ways to help stimulate the economy is with home purchases; meanwhile, the lagging economy is what is causing consumers to shy away from buying right now. For more information, call Sean Z Mortgage at (314) 361-9979.

Photo credit: Bradley Gordon via Flickr