Address: 1950 Craig Road, Suite 100 St. Louis, MO 63146

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Liberty Lending’s Top 10 Tips!

  1. Make sure a personal loan offers you the best deal. Check if there are other types of loans that could serve your needs better. For instance, you could take out a home equity loan or line of credit.
  2. Sources that offer personal loans include banks, credit unions, and online lenders. Each of these offers a range of interest rates, and their terms vary. That’s why you should shop around and find a lender whose loan best fits your needs.
  3. Look at ALL the expenses when you are budgeting for the house: When budgeting for the house, don’t stop with principal, interest, taxes, and insurance; add in utilities, cost of commuting and upgrades.
  4. Call the utility companies that service the house you are considering and ask for an estimate of what the cost will be, whether there are any budget plans available, etc. 
  5. Be sure to read your contract before you sign it: a house is probably the largest purchase you will ever make in your life, so make sure you understand the terms of your contract. If you don’t understand any of the terms, ask your mortgage broker and your real estate agent.
  6. Learn about the neighborhood demographics: If you are buying a house in a neighborhood full of renters, it only takes a few bad renters or bad landlords to drive the neighborhood down fast. If the neighborhood is full of single people, will you be happy there if you have very young kids?
  7. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later.
  8. Save for a down payment of 20 percent.
  9. Be Real About Your Budget. In order to determine your monthly housing budget, get familiar with the term “housing expense ratio” — which is an indication of a borrower’s ability to make the payments on their mortgage loan. This ratio measures housing expense as a percentage of gross income (income before deducting for Social Security, Medicare, and taxes). Mortgage lenders expect a borrower to have a housing expense ratio of 28% or less.
  10. Lenders will also likely consider a borrower’s total expenses — which include housing expenses and fixed monthly obligations. Industry experts say a borrower’s expenses should not exceed 36% of gross income.

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