Choosing the right mortgage in St. Louis can be a challenging task, especially for real estate investors who need fast and reliable financing. Traditional lenders often require extensive paperwork, credit checks, and a lengthy approval process, which can slow down your investment plans.
For those looking for an alternative to conventional mortgages, hard money loans can be a great solution. Unlike traditional banks, hard money lenders approve loans based on the value of the property rather than the borrower’s creditworthiness. This makes them ideal for real estate investors who want to acquire properties quickly.
If you are searching for the best mortgage in St. Louis, here are the key factors to consider and why Westre Financial Group stands out as a top lender in the region.
Understand Your Mortgage Options
Before deciding on a mortgage, it is important to understand the available financing options.
Traditional Mortgages
- Offered by banks and credit unions
- Require high credit scores and income verification
- Lengthy approval process with strict underwriting guidelines
- Down payment and private mortgage insurance may be required
Hard Money Loans
- Funded by private lenders based on property value
- No credit score requirements
- Fast approvals and closings
- Short-term financing solution for real estate investors
For investors looking to purchase properties in St. Louis, hard money loans offer a quick and reliable alternative to traditional mortgages.
Why Hard Money Loans are a Better Choice for Investors
If you are purchasing an investment property, you need a financing solution that aligns with your business goals. Hard money loans provide several advantages over conventional mortgages:
- No Credit Checks: Since approval is based on collateral, your credit score is not a determining factor.
- Fast Processing: Traditional mortgages can take weeks or months, while hard money loans can be approved in days.
- Flexible Terms: Loans are structured to suit real estate investment needs, covering 100% of the purchase price.
- No Prepayment Penalties: Investors can repay loans early without additional fees.
Factors to Consider When Choosing a Hard Money Lender in St. Louis
If you have decided to go with a hard money loan, choosing the right lender is crucial. Here are some key factors to consider:
1. Experience and Track Record
A lender with extensive experience in real estate financing can offer better guidance and insights. Westre Financial Group has been in the hard money lending business since 2001, funding over 2,650 loans totaling $143 million. Their deep understanding of the St. Louis market gives them an edge over competitors.
2. Loan Coverage
Not all lenders cover the full purchase price of a property. Westre Financial Group provides 100% of the purchase price, eliminating the need for a large upfront investment.
3. Speed of Approval and Funding
Time is critical in real estate investing. The faster you secure financing, the quicker you can close a deal. Westre Financial Group ensures that loans are approved based on a property’s potential profitability, with funding available as soon as the title company is ready.
4. Transparency and Fees
Hidden fees can add up quickly and reduce your overall profitability. Some lenders charge application fees, appraisal fees, and processing fees, which increase the cost of borrowing. Westre Financial Group keeps it simple, charging only a 2% origination fee with no additional junk fees.
5. Lending Area and Restrictions
Make sure the lender operates in your target area. Westre Financial Group focuses exclusively on St. Louis City and County, providing local expertise that national lenders may lack. They do not lend in flood-prone areas due to the high cost of insurance.
The Loan Application Process
Applying for a loan with Westre Financial Group is a straightforward process:
- Submit a Borrower Application – This helps determine if you qualify for a loan. If a pre-approval letter is required, it is provided at this stage.
- Identify the Property – Once you have selected a property, you complete the Loan Request Application and submit proof of funds for the renovation costs.
- Property Evaluation – Brad Westre personally inspects the property and assesses four key factors: purchase price, renovation costs, soft charges, and anticipated selling price.
- Approval and Funding – If the property is expected to yield a reasonable profit, the loan is approved. Funding is processed as soon as the title company finalizes the paperwork.
Who Can Benefit from Hard Money Loans?
Hard money loans are best suited for:
- Fix-and-flip investors looking for quick financing.
- Buy-and-hold investors who want to expand their rental portfolio.
- Out-of-state investors seeking local lending expertise in St. Louis.
While these loans are not for every borrower, they provide a valuable tool for those who need speed, flexibility, and a financing solution that does not rely on credit scores.
Avoiding Common Mistakes When Choosing a Mortgage
- Not Understanding Loan Terms – Make sure you are clear on what is covered, including origination fees and funding terms.
- Assuming All Hard Money Lenders Are the Same – Experience and transparency matter when choosing a lender.
- Failing to Plan for Renovation Costs – Since rehab funds are not covered, ensure you have the capital to complete the project.
Conclusion
Choosing the best mortgage in St. Louis depends on your needs as a real estate investor. If you require fast, reliable financing without the hurdles of traditional banks, a hard money loan from Westre Financial Group is the ideal solution.
Westre Financial Group has over 20 years of experience in real estate lending, offering 100% purchase price financing with no junk fees. Their expertise in the St. Louis market ensures that you receive the best guidance and funding options available.
For more details or to start your loan application, visit Westre Financial Group today or call (314) 626-4442 to speak with a lending expert.