Understanding the Terms Related to Your Current Financial Status

This is our second blog in a series about Understanding the Mortgage Terms when buying a home.   If you are currently in the process of getting a Lake of the Ozarks Mortgage, you will be introduced to a whole new world of financial terms that you may or may not understand.

This week we are going to focus on terms that are directly related to your current financial status.  

• Asset - Anything owned of monetary value including real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, etc.).
• Balance Sheet - A financial statement that shows assets, liabilities, and net worth as of a specific date.
• Before-tax Income - Income before taxes are deducted.
• Credit Report - A report detailing an individual's credit history that is prepared by a credit bureau and used by a lender to determine a loan applicant's creditworthiness.
• Credit Risk Score - A credit score measures a consumer's credit risk relative to the rest of the U.S. population, based on the individual's credit usage history. The credit score most widely used by lenders is the FICO® score, developed by Fair, Issac and Company. This 3-digit number, ranging from 300 to 850, is calculated by a mathematical equation that evaluates many types of information that are on your credit report. Higher FICO® scores represents lower credit risks, which typically equate to better loan terms. In general, credit scores are critical in the mortgage loan underwriting process.
• Liquid Asset - A cash asset or an asset that is easily converted into cash.
• Net Worth - The value of all of a person's assets, including cash.
• Non Liquid Asset - An asset that cannot easily be converted into cash.
• Total Expense Ratio - Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.

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