What First-Time Home Buyers Need to Know; St Louis Mortgage Interest Rate Update

What a great time to be a First Time Home buyer!  Historically low interest rates and great home prices!  However, the home buying “process” can be a difficult if the borrower is not prepared and have not done their homework.

Before making offers and writing contracts, talk to your mortgage lender and get Pre-Qualified for a loan.  Pre-Qualify means you can confidently begin house shopping in the appropriate price range.

Even if you haven’t so much as selected a Realtor®, it’s important to see your mortgage professional first. Your mortgage banker will help you determine how much of a mortgage payment you can afford, and how much you qualify for

The first and most important step is understanding your monthly budget and knowing how much you are comfortable paying for your home; Principal & Interest, Real Estate Taxes, Homeowners Insurance, and, if applicable, Mortgage Insurance and Association or Subdivision Fees.

Your mortgage professional will review with you your employment (income), assets, residence history, and your credit history. From this, we can issue a Pre-Qualification Letter. Your Pre- Qualification will help to make the best offer on the home you choose. To begin with, you will feel comfortable knowing you can financially stand behind the offer you write in the contract. More importantly, to a home seller, your pre-qualification offers the strength of being a cash buyer! They seller won’t have to wonder if you’ll qualify for the mortgage.

Given your unique credit and employment history, income and debt, and goals, your mortgage professional can help determine how big of a loan can you qualify for.   Talk to your mortgage banker before house hunting.

St. Louis MORTGAGE INTEREST RATES for May 12, 2011:

  • Conventional 30-Year Fixed 4.750%/ 5.125% APR
  • Conventional 15-Year Fixed 4.125%/ 4.5% APR
  • Conventional 5/1 ARM 3.500%/ 3.277% APR
  • FHA/VA 30 Year Fixed 4.500%/ 5.125% APR
  • Jumbo 5/1 ARM 3.375%/ 3.252% APR
  • Jumbo 15 yr Fixed 4.00%/ 4.29% APR
  • Jumbo 30 yr Fixed 5.250%/ 5.625% APR

Paramount Mortgage is a locally owned Mortgage Banker; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

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