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Are you preparing to make the leap from renting your space to owning your home? Whether you're investing in a townhouse on the bustling streets of Kansas City or buying a single-family property in the peaceful city of Parkville, our guide to Missouri loans and home buyer programs will help simplify the process.
5 best mortgage lenders in Missouri:
The 5 best mortgage companies in Missouri
Missouri offers borrowers a choice of lenders when it comes to getting a mortgage. Let's take a look at some of our favorite lenders and the types of loans they offer.
1. The best for first time home buyers: U.S. Bank
Buying a home can provoke many emotions. If you are a first time home buyer, it can be helpful to know that you can go to a physical location and speak to a loan agent if you are having trouble completing your online application.
With just over 200 offices in over 100 cities, U.S. Bank is the largest mortgage provider in Missouri with physical locations. U.S. Bank offers all types of government-guaranteed mortgages and its website offers numerous tools and calculators that you can use to plan your loan. If you are looking for a simple online application and a location where you can fall back, U.S. Bank can be a great option for you.
2. The best for self-employed professionals: Flagstar
If you are self-employed, you may be surprised at how difficult it is to prove your income. As your income fluctuates, you need a dynamic mortgage that suits your specific needs.
Flagstar is one of the most flexible mortgage lenders when it comes to choosing the type and duration of the loan. Flagstar offers terms between 8 and 30 years, allowing you to customize your payments. If you are a new professional who has just graduated with an advanced degree, Flagstar also offers additional loan options for which you could qualify for more debt or a lower income level.
3. Best Online Lender: Quicken Loans®
If you are looking for a quick and easy online application, consider getting your loan through Quicken Loans®. Quicken Loans' Rocket Mortgage® platform has simplified and simplified the mortgage application process. You can apply for your loan quickly and the Quicken Loans application is so simple that you can finish it on your phone or tablet.
If you're buying your first home, you'll love the wealth of Quicken Loans information and guides. They have articles on everything from the documents you will need to apply for your loan to the various types of mortgages. Easy and informative, Quicken Loans is our best choice for online loans in Missouri.
4. The best for FHA loans: Carrington Mortgage Services
If you are thinking of buying a home with an FHA loan, it could be because you have a lower credit score. Most lenders will allow you to buy a home with an FHA loan if you have a credit score of at least 580 points, but what if you are still working on building your score up to this point?
Carrington Mortgage Services is one of the few lenders that will allow you to buy a home with a credit score of only 500 points. While you will need an above-average down payment of at least 10% of the value of your loan, this can make buying a home much easier if you have a low credit score and are comparing FHA loan options.
5. The Best for VA Loans: Veterans United
If you've served in the military, you may want to consider buying a home with a VA loan. Veterans United is the number one VA lender in the country and with an average rating of 4.7 out of 5.0 stars, it is also one of the most reviewed lenders.
Veteran United understands that getting loan documents and proof of service can be confusing. Their veteran staff can simplify the presentation and knowledge of the qualification requirements. Veterans United also offers affordable and consistently affordable rates for VA loans – so you will know that you are getting a good deal on your home loan.
There are many different types of mortgages. You can customize the duration and type of the loan according to your repayment needs. But what exactly is one type of mortgage and how many options are available to you?
Most homebuyers will choose from 2 overall loan categories: compliant or government-backed. If a loan is compliant, it means that your lender has the option to sell it to a mortgage investment company such as Fannie Mae or Freddie Mac. Compliant loans usually have lower interest rates and are available from multiple lenders.
A government-backed loan means that your loan is insured by the federal government. There are several types of government guaranteed loans, but we will focus on the most common: FHA and VA loans. Government guaranteed loans are easier to qualify in terms of income, debt and credit because they are less risky for lenders.
Your mortgage period tells you how long you need to make monthly payments on your loan. For example, if you take out a loan with a term of 15 years, it means that you will make monthly payments to your lender every month for 15 years. After reaching the end of the loan period, you own your home in full. Your term will also tell you more about your structure of interest and how it changes.
All mortgages include both a term and a type. You can combine terms and types according to your needs.
Conventional mortgage loans are the most common type of mortgage loan. You can use a conventional loan to purchase any type of property in any part of the country. To qualify for a conventional loan, you generally need a credit score of at least 620 points and a down payment of at least 3%. HA loans are for those with lower credit scores: to obtain a score of 580 points you need an FHA loan with most lenders. To qualify for an FHA loan, a deposit of at least 3.5% is generally also required and you need to buy a home that you plan to live full time. VA loans are government-guaranteed special loans for veterans and active members of the military. VA loans have a 0% deposit and you can qualify with a credit score of only 620 points. Service requirements must be met before a VA loan can be obtained and not all service members will qualify. It is also necessary to document the service with a certificate of suitability (COE). The mortgage lender may be able to help you.
Duration of the mortgage
Here are three types of mortgage conditions.
30 year fixed rate loans require monthly payments for 30 years before fully owning your home. Fixed rate loans maintain the same interest rate for the duration of the loan 15 year fixed rate loans operate in exactly the same way as 30 year fixed rate loans but with 15 years of variable rate payments 5/1 mortgages (ARM) do not maintain the same rate for the entire period. When you have an ARM, your lender will first give you some years of fixed interest payments. At the end of the pre-established period, the lender will increase or decrease the interest rate based on the change in market rates.
ARM 5/1 is the most common type of ARM and can last for 15 years, 30 years or another term. ARM 5/1 starts with 5 years of fixed interest, then changes according to the interest market every year.
Which mortgage lender is the best for you?
There is an overwhelming number of mortgage lenders out there. To find the best lender for you, look for these qualities.
Quick answers from customer service: buying a house can be confusing, stressful and frustrating. Having a responsive customer service team can greatly simplify the application, approval and closure processes. Many Loan Options: Some lenders offer a wide range of loan terms and types, while others specialize in only one type of loan. Decide which type of mortgage loan works first with your finances and credit information, then look for a lender who offers that loan. An easy application: look for a lender who offers a simple and direct preapprovation process. If you are buying your first home, you may want to look for a lender who issues loans in person in a physical location.
Loan credit score lows in Missouri
Whenever you use credit or take out a loan, it impacts your credit score. A credit score is a 3-digit number that represents you as a borrower. If you make loan and credit card payments on time and avoid overcrowding, you probably have a high score, while missed payments and increased credit usage can result in a lower score.
Low credit scores pose a greater risk to lenders. Mortgage lenders establish minimum credit scores to limit their risk in choosing mortgage applicants. Here are some minimum credit score requirements among lenders.
The current mortgage rates in Missouri
Mortgage rates change rapidly. Rates in your area may change on a daily basis if you live in an area with a hot property market. Your local real estate market and federal bond interest rates can also play a role in what you pay for your loan.
Let's take a look at the current market rates in Missouri. We update this table regularly as market rates rise and fall.
Rates based on an average home price of $ 225,000 and a 20% deposit.
Average days to close on a loan
Closing is the final home stretch of the mortgage process. Most closures include 4 parts:
Evaluation: During an evaluation, an expert will visit your news at home and assign general value to your property. Mortgage lenders request assessments before they can issue loans and most lenders will plan your assessment for you. Inspection: When planning an inspection at home, an inspector will walk around your property and create a list of things that are broken or that need to be repaired. Unlike an appraisal, an inspection isn't a required part of the closing process, but you should still get one to make sure your property is actually in the form in which you assume it is. Underwriting: the underwriting phase is the time when your lender doubles – check your financial records and process loan documents. The lender will manage the underwriting of the loan during the evaluation and inspection. Closing meeting: during the closing meeting, you will access the new loan and pay the down payment and closing costs.
The whole closing process can take up to 3 weeks and up to 3 months depending on the lender.
Buy your new home
Finding the best mortgage comes with homework. Explore some different mortgage life options with mortgage payment calculators, learn more about the types of loans you are eligible for with your credit score, and find out exactly how much home you can afford. After knowing what you'd like to spend, you can start shopping for homes and lenders.
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