Understanding the Terms Associated with Closing on your Lake of the Ozarks Home

For the past two weeks we have been covering some terms that we think will be helpful to you as your go through the process of getting a Lake of the Ozarks Mortgage Loan.  Understanding the following terms will not only build your confidence, but it will also create a smoother process for you and your Lake of the Ozarks Mortgage Lender!  

• Appraisal - A written analysis prepared by a qualified appraiser and estimating the value of a property.
• Appraised Value - An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.
• Closing - A meeting held to finalize the sale of a property. The buyer signs the mortgage documents and pays closing costs. Also called "settlement."
• Closing Costs - These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
• Down Payment - Part of the purchase price of a property that is paid in cash and not financed with a mortgage.
• Equity - The amount of financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on the mortgage.
• Interest - The fee charged for borrowing money.
• Lock-In Period - The guarantee of an interest rate for a specified period of time by a lender, including loan term and points, if any, to be paid at closing. Short term locks (under 21 days), are usually available after lender loan approval only. However, many lenders may permit a borrower to lock a loan for 30 days or more prior to submission of the loan application.
• Origination Fee - A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.
• Points - A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $165,000 one point means $1,650 to the lender.Points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
• Pre-Approval - The process of determining how much money you will be eligible to borrow before you apply for a loan.
• Principal - The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
• Private Mortgage Insurance (PMI) - Mortgage insurance provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

We realize that you may need additional information and we would love to help you understand the process of getting a Loan for you Lake of the Ozarks Home!  Please give us a call and we can set up a time to speak with you!  You can call me direct at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712