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PREA Signature Realty

A Full Service Real Estate Brokerage 

Info Line:  314.621.5777

Brokerage:  314.397.3182

Display:  314.771.7171

MSilies@PREASignatureRealty.com

 

1709 Park Avenue, St. Louis, Missouri 63104

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Prea Signature Realty—Your Real Estate Partner in St. Louis, Missouri

CURRENT RATES

Interest rates will vary based on lender, property, property type, loan product, down payment, credit score and other factors.  Interest rate quotation provided for informational purposes only.

THE LOAN PROCESS

STEP 1—RESEARCH LOAN RATES AND PRODUCTS.  Research rates and loan products.  Understand the differences between fixed loan products and adjustable rate products.  Consider whether you should reduce your mortgage by paying loan points to reduce the interest rate.  When comparing rates, focus on ARP.  The ARP includes the interest rate plus the costs of the loan (e.g. origination fees, appraisal fees and other lender fees).

 

STEP 2—ORGANIZE YOUR FINANCIAL RECORDS.  Organize your financial records including last two years of federal and state income tax returns, two months of banks statements, last year’s W-2, and current paystub.

 

STEP 3—SELECT A LENDER.  Obtain referrals to reputable lenders.  Interview the loan officer.  Ask for references.  Select a lender based on set criteria including product knowledge and lending experience, competitive interest rates and lender fees, and superior customer service.  In today’s market, it is a mistake to shop on interest rate alone.  Having a smooth, problem-free closing starts with the selection of a qualified, knowledgeable and experienced loan officer.

 

STEP 4—SELECT A LOAN PRODUCT.  After you have selected your lender, request your loan officer to recommend a loan product suitable for your circumstances.  Consider such factors as salary increases, length of anticipated ownership, etc.

 

STEP 5—OBTAIN A PREAPPROVAL LETTER.  Obtain a preapproval letter.  Understand the differences between a prequalification letter and a preapproval letter.  A prequalification letter is simply a “ballpark” estimate of the loan amount that you may be qualified to obtain; a preapproval letter is an agreement to make the loan, subject to verification of no change in financial condition, appraisal, and title review.

 

STEP 6—OBTAIN GOOD FAITH ESTIMATE.  Obtain a good faith estimate of the total funds necessary to close the loan.  The good faith estimate should include an estimate of costs including lender fees (e.g. origination fees, processing fees, etc.), third party fees (e.g. appraisal, tax service fees, title insurance fees, closing fees, etc.) and escrows (e.g. prepaid interest, hazard insurance and estimated taxes). 

 

STEP 7—UNDERSTAND THE LOAN PROCESS.  The loan officer takes the loan application.  The processor then pulls credit, orders appraisal and verifies income, employment, etc.  The processor submits the complete loan package to the underwriter.  The underwriter then reviews and  approves, approves with conditions, or rejects the loan.  Upon approval, the processor sends the lender documents to the title agency or closing company.

 

STEP 8—SECURE CLOSING FUNDS.  Obtain a copy of the preliminary HUD-1 settlement statement from the title agency.  After you have determined the amount necessary to close the loan, make sure that the funds are available (ie. liquidate investments and transfer to bank account).  If you are paying cash or making a down payment in excess of $250,000, make sure that you deposit the any funds exceeding $250,000 in a separate account at a separate financial institution to take advantage of the protections of FDIC insurance.  Obtain wire instructions and order wire transfer or, in alternative, obtain cashier’s check from local bank.

 

STEP 9—CLOSE THE LOAN.  Prior to closing, contact your lender and title agency to verify any items that you must bring to closing such as proof of property insurance, driver’s license and certified funds.  Review final good faith estimate, final HUD-1 settlement statement, TILA statement, deed of trust, and promissory note.  Verify loan product, interest rate and existence of prepayment penalty.  Compare HUD-1 settlement statement to good faith estimate to verify no change in lender fees.  Review loan documents and related disclosures and sign or execute loan documents.  If you lender is using standardized Fannie Mae forms, the provisions of the loan documents cannot be changed—except for errors in name, interest rate, loan product, etc.

MORTGAGE CALCULATORS AND OTHER GUIDES

LOAN COUNSELORS

 

We don’t just make a  referral to a lender.  We participate in each step and manage the process from loan application through closing.  Whether purchasing or refinancing, ask for one of our loan counselors to review the loan options with you.

 

For Information on Loan Products, Contact:

 

Michelle Silies

PREA Signature Realty

314.397.3182

LOAN RESOURCE CENTER

 

INTEREST RATES REMAIN

AT HISTORIC LOWS