MLS is our acronym for Mortgage Loan Service!

If you are a first time Missouri home buyer or have purchased other St. Louis real estate, the type of mortgage you select is very important in St Louis and thruout The State of Missouri. It is also very important to prepare and know what is going to be expected when applying for a home mortgage loan. Below are tips on getting your mortgage home loan approved.

What is important to St Louis Missouri home lenders?

Not every applicant is approved for a home loan the first time he or she applies. For a variety of reasons, even after a lot of hard work, sometimes a loan just can’t be approved. It may have to do with the applicant’s credit or savings history, employment stability, debt structure, or the value of the home. The good news is that a denial is merely a detour, not a roadblock. Purchasing a home takes planning, discipline and hard work! Follow these tips and with our assistance, home ownership is not out of reach.

Establish a consistent record of paying bills on time

Before making a loan the size of a home loan, most lenders will want to review how you have handled your credit in the past. This includes all credit accounts, including utilities, revolving debt (credit cards, etc.), and installment debt (car loans, student loans, etc.). It is critical for you to bring all overdue bills up to date immediately and begin paying them on time in a consistent manner.

Establish a consistent record of steady employment

Lenders are more likely to look favorably on an applicant who has been in the same (or similar) line of work for generally two or more years. If you have been working steadily for less than two or more years, the lender may ask about that. There are many acceptable reasons, including:

• You recently finished school, vocational training, or left the military;
• Your work is typically seasonal and gaps in employment are customary to the industry
• You may have been laid off from your job; or
• Frequent employment changes are normal in your line of work (sales, contract work, etc.), but you have been consistently employed and maintained a consistent level of income over the past 2 years.

You may want to pay off some debt to lower your debt-to-income ratio

This step will make it easier to qualify for a mortgage loan if your debt ratio is high. Chances are good that if you’re already paying rent, making a mortgage payment will be a smooth transition. Along with the mortgage payment, you’re also responsible for real estate taxes and insurance, and if required, mortgage insurance and homeowners dues. Work toward determining the monthly payment you can afford based on your income and the standard debt-to-income ratio guidelines.

Establish a consistent savings pattern

Saving money for a down payment, and still having enough cash reserves left over to cover 2-months of expenses in the event of an emergency, is typically a most challenging part.

Mortgage Loan Application Checklist

Copy of your Purchase & Sale Agreement
Your present mortgage information
Two-year history of employment and verification of all income sources
If self-employed, copies of past two years Federal Income Tax Returns -
Information about your checking, savings and credit card accounts -
Name, account number and outstanding balance of each of your debts
Application deposits
Information about any assets
Information regarding any other assets that will be used as funds to close -
If FHA - Copy of Social Security card and photo ID
If VA - Certificate of Eligibility or DD214
If Employee Relocation Client - include relocation information and copy of offer, promissory note and copy of check on bridge loan.

P.S. We also strongly suggest you save money selling your present home by going with a flat fee real estate agent, in addition to saving money with favorable loan terms and reduced cost on your new home mortgage loan.