No - I can sell any property in the state of Missouri. I can help make your search easier. The internet has lots of houses listed but most of the databases aren't up to date. I use the St. Louis area Multiple Listing Service (MLS) It's the same service that all of the area real estate companies use and its information is very accurate and current. Based on our discussion of your needs, I can set up a search and have it email properties to you as soon as they are listed so you'll know about properties within an hour of their availability. Let's make an appointment to get together. Send me an email or call me at 314-772-HOME (4663) (Back to Top)

How much money will I have to have?

Even if you choose a 100% loan you should expect to have expenses of 2 1/2% of the price of your home. These expenses are referred to as closing cost prepaids and points. A 100% loan is a non-conforming product, you should consult with your Realtor and loan officer to find the correct product for you. (Back to Top)

What are closing costs?

Closing costs are the fees that must be paid in order to originate your loan, insure your deed, record and transfer title. (Back to Top)

Can the seller pay closing costs?

Usually yes however you must be sure your loan product allows this. It is important to clarify your underwriters rules before submitting an offer. Each institution has rules governing allowed closing costs and or concessions. (Back to Top)

Should I make a large down payment?

The answer to this and other financial questions is peculiar to your circumstances. The first thing to find out is does your credit allow you options. If your credit allows a lower down payment you must decide if it is the best use of your funds. If you will need money in the near future for furnishings or home maintenance a large down payment may be unwise. If you need a safe investment vehicle you may wish to have a large down payment on the other hand a sophisticated investor my wish to invest in higher returns. (Back to Top)

Is owning or renting cheaper?

Owning. U.S. tax code has been designed to promote home ownership. Home owners receive credits for interest paid toward the purchase of a home and usually become eligible for other deductions not available to those who cannot itemize. It is also true that landlords build profit into rent so buying is at least that much cheaper than rent. Over time real estate appreciates some times at varying rates but traditionally at around ten percent per year. The difference between what you owe and the worth of your home is referred to as equity. Tax deductions, discounted shelter and equity all make owning the wiser choice. (Back to Top)

What is A paper?

A paper is a term used by underwriters to refer to a loan which meets the parameters set by Fannie Mae/Freddie Mac for loans those organizations will buy or purchase. Also referred to as conforming, A paper says the borrower has adequate credit, income and job history for a given loan. (Back to Top)

What is B paper?

B paper on nonconforming is a loan which does not meet the requirements set out by Fannie Mae. At least one factor has caused the loan to be unacceptable. The borrower may be borrowing a large percentage of his income, his credit score may be low or his income erratic or poorly documented. These loans have higher rates and more fees than A paper. If you believe you are eligible for a conforming loan and are not being offered one see another lender. (Back to Top)

What is First Time Buyer Money?

In Missouri first time buyer money is known as MHDC. MHDC is a grant program where persons within the income limits can get a lower rate or a grant to buy a home. For more info go to MHDC's website. (Back to Top)

What is a second?

When a buyers down payment and loan are less than the purchase price the seller may finance a portion of the purchase. The lenders loan is in first place and the sellers in second. In the event of a foreclosure the lender in first place receives payment of its full debt while the second place lender receives the remaining funds. If the house is sold or refinanced the second must be paid in full. (Back to Top)

What is a "forgivable" second?

While any loan may be discounted or forgiven during its life, a "forgivable second" is an agreement by the buyer and seller prior to closing that the note held by the seller will not be paid. The buyer, seller and usually mortgage broker collude together to hide the true level of risk from the primary lender. A more concise term for this practice would be fraud. While the seller carry-back or second is an appropriate practice, this scenario is not. (Back to Top)

What is LTV?

LTV is an abbreviation for Loan to Value. The LTV is the percentage of a properties value that the lender is willing to finance. The higher the ltv the lower the down payment. FHA loans are typically 97ltv. (Back to Top)

What is pre-qualified?

A pre-qualification is a statement by a loan officer that a person appears qualified based on the answers to some questions. None of the information has been verified and neither buyer nor seller should rely on this statement. (Back to Top)

What is pre-approved?

A buyer can be pre-approved after they have applied for a loan and had a credit report run. A pre-approval will have some exceptions, the fewer the exceptions the stronger the preapproval. Remember the preapproval is only as good as the institution issuing it. (Back to Top)

What is a HUD home?

The Federal Housing Administration guarantees many first time home buyers loans. In St. Louis loans up to $149,000 may be guaranteed. If the buyers of these homes default the FHA may buy the home from the bank and than resell it through HUD. Thus it is a HUD home. In St. Louis all HUD homes are available through any realtor. Special rules apply. (Back to Top)

What is the FHA?

An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

FHA loans have inspection requirements that often scare sellers but their requirements are rarely stricter than a St. Louis area municipality. (Back to Top)

What is PMI and MIP?

Loans that have a higher than 80 ltv will require the buyer to carry insurance to guarantee their loan. In the event that you pay off 20% of your loan or have 20% do to appreciation PMI should be retired. FHA normally requires a refinance in order to retire MIP. This is one advantage of a conventional loan over a government loan. (Back to Top)

Why should I be pre-approved?

Pre-approval has many benefits. The buyer is assured of his/her purchasing power and only shops within that range. The agents involved and the seller are all assured of the buyers serious intent. This assurance of ability and intent makes the preapproved buyer a more desirable than someone who has not put forth the effort. Not being preapproved can cost the buyer thousands in negotiating. (Back to Top)

What is an appraisal?

An appraisal is a written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby. Ordering the appraisal is one of the good faith efforts required in the contract of the buyer. Delayed payment for the appraisal is one of the most common delays in closing and may place the buyer in default. (Back to Top)

What is underwriting?

Underwriting is the process of reviewing a loan package after the loan officer has prepared it and the home has been appraised. When underwriting is complete the lender should issue a commitment. (Back to Top)

What is the lowest down payment I can make?

There are a lot of factors to consider. A buyer who is qualified can get into a property with no money down. Whether this is the best choice is a matter that should be considered. (Back to Top)

What is a 1031 Tax Exchange?

For comprehensive information on 1031's see the IRS site or confer with a licensed 1031 agent. (Back to Top)

In laymen's terms a 1031 transfer allows a person to transfer the equity of a rental property into a new investment. The previous property may have been partially or wholly depreciated but the seller will not suffer capital gains tax as long as all of the equity is transferred. Often the new property is refinanced after the transfer freeing up the investors capital for further investments. (Back to Top)

Do I have to pay capital gains on my home sale?

The following was excerpted from the IRS website. Click here for more info.

Gain. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). Any gain not excluded is taxable.

Loss. You cannot deduct a loss from the sale of your main home. (Back to Top)

If you have other questions, please contact me.