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.

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

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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

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.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

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

Understanding Mortgage Terms when you are Purchasing your Lake of the Ozarks Home!

Purchasing a Lake of the Ozarks home will likely be one of your largest financial transaction, so it's important to make sure you understand the terms and information that you will hear from your Realtor, Lake Ozark Mortgage Lender and Title Company.

Over the next few weeks, we are doing a series of blogs to help you understand some of these terms that you may hear but not completely understand.  This week we are specifically looking at Mortgage Terms.

• 2/1 Buy Down Mortgage - The 2/1 Buy Down Mortgage allows the borrower to qualify at below market rates so they can borrow more. The initial starting interest rate increases by 1% at the end of the first year and adjusts again by another 1% at the end of the second year. It then remains at a fixed interest rate for the remainder of the loan term. Borrowers often refinance at the end of the second year to obtain the best long term rates; however, even keeping the loan in place for three full years or more will keep their average interest rate in line with the original market conditions.
• Adjustable-Rate Mortgage (ARM) - A mortgage with an interest rate that changes during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages)
• Balloon Mortgage - A mortgage with level monthly payments that amortizes over a stated term but also requires that a lump sum payment be paid at the end of an earlier specified term.
• First Mortgage -The primary lien against a property.
• Fixed-Rate Mortgage (FRM) - A mortgage interest that are fixed throughout the entire term of the loan.
• Growing-Equity Mortgage (GEM) - A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.
• Guarantee Mortgage - A mortgage that is guaranteed by a third party.
• Mortgage - A legal document that pledges a property to the lender as security for payment of a debt.
• Mortgagor - The borrower in a mortgage agreement.
• Step-Rate Mortgage - A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.
• Two-step Mortgage - An adjustable-rate mortgage (ARM) with one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.
• VA Mortgage - A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage.
• "Wrap Around" Mortgage - A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount requested by the mortgagor. Full payments on both mortgages are made to the "Wrap Around" mortgagee, who then forwards the payments on the first mortgage to the first mortgagee. These mortgages may not be allowed by the first mortgage holder, and if discovered, could be subject to a demand for full payment.

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.

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

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

First State Mortgage Team will Host the Business Journal

Thursday June 13, 2013 your First State Bank Mortgage Team will be sponsoring the Business Journal Social!!!  

If you're local business at the Lake of the Ozarks, this is the perfect time to enjoy an evening of networking and socializing.  The event brings together a large group of business people from the Lake of the Ozarks in an informal atmosphere for business, beverage of your choice and appetizers, courtesy of the First State Bank Mortgage Team!!  

Be sure to come out and say Hi and enjoy a great evening and door prizes.

Where:  Lil Rizzo'z at the Outlet Mall in Osage Beach
When:  June 13th 4-7

We invite you to come out and say Hi and enjoy some appetizers on us!!  We look forward to seeing you there!

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

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