Wednesday, October 16, 2019

How to Get Smart About Credit

Homeownership rates in the United States have been steadily increasing over the last decade. This is especially true over the last few months as housing prices are doing well and the interest rates have been low. October 17th is Get Smart About Credit Day, and it’s a great time to take a look at where your finances are and figure out where they need to be. If you are buying a home at the Lake of the Ozarks, whether it’s your first real estate purchase or you are a seasoned buyer, being smart about your credit is always important. Here are a few tips from Team Lasson for ways to improve your credit and give you the best possible chance for success when applying for a mortgage.

#1. Know Your Credit Score

It only takes a few minutes to learn about your credit score, in fact, many credit card companies make it easy to learn about inside your account. Surprisingly, there are many future home buyers who never review their scores or their credit history before submitting a home loan application, and they just assume that they will qualify. Before applying for a mortgage, it’s always smart to look at your credit report. Your scores and credit activity can have a major impact on your mortgage approval, and a minimum credit score is required for most loan programs. Several things that can affect your mortgage approval, other than your credit score, are missed payments, frequent late payments, and other derogatory credit information. Take time to clean up your credit history before applying for a mortgage and you could save some time and the additional effort of having to apply again later.

#2. Build Up Your Savings

Having money set aside before beginning your mortgage process can really help your application status. While several lenders have options for a zero-down mortgage loan, having a downpayment can be a huge advantage. The minimums will vary depending on the mortgage that you are applying for, but having money set aside can be a great advantage when starting the application process. Of course, down payments aren’t the only expense that you have to prepare for there will also be closing costs, inspections, appraisal, title search, credit report fees - and other expenses. You can expect that closing costs will be roughly 3%-5% of the mortgage balance.

#3. Stay At Your Job

If you want to buy a home, keeping your job through closing is extremely important. Any changes to your employment or income status can stop, or at the very least, delay the mortgage process. Lenders will approve your home loan based on the information provided in your application. Changing jobs, choosing a lower-paying career, or quitting your job entirely to become self-employed can greatly impact the plans, and lenders will have to reevaluate your finances to determine if you still qualify for the loan.

Getting a Lake of the Ozarks Home Mortgage

Getting your mortgage can feel a little intimidating at first, but when you are working with Team Lasson, we can help you evaluate your finances and establish a good goal to either work towards or to shop for when you start the home search. If you are ready to get smart about your credit and start the mortgage process, visit our website! You can fill out the pre-approval paperwork, and begin securing your Lake of the Ozarks mortgage. We can’t wait to begin working with you!

For Lake area news, resources and tips on financial services, please 

Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

Direct: (573) 746-7211

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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