What is a Loan Modification?

Are you going through a financial hardship? Have you fallen behind on your mortgage payments? Are you facing a foreclosure on your home? A loan modification might be the solution to your mortgage problems. Your Lake of the Ozarks mortgage lender is here to help you understand what a loan modification is and can help you determine if you're eligible for one. 

Loan Modification 

A loan modification is an agreement between you and your mortgage company to change the original terms of your mortgage. This could be a change in the payment amount, length of the loan, interest rate, etc. In most cases, you can modify your loan so your monthly payments are more affordable. You might consider a loan modification if you're ineligible for a refinance, you're facing a long-term hardship, or you're several months behind on your mortgage.

Determining a Borrower's Eligibility

Lenders will use specific financial analysis criteria to determine if a borrower is eligible for a loan modification. This criteria includes:

• Financial Hardship: The borrower experienced an unavoidable, verifiable loss of income or increase in living expenses. This could include job loss, death of a spouse or child, illness or disability.
• Ability to Pay: The borrower can prove he/she will be able to make the new payments now and the original payment again after 6 months.
• Debt-to-Income Ratio: While this may vary, most lenders require the borrower's debt-to-income ratio in the 36% to 45% range. Compensating factors such as credit score and the amount of equity in the property will also be considered.
• Inability to Refinance: The borrower is unable to refinance, but still needs temporary lower payments to make it through financial hardship. 
• New Applicant: The mortgagor has not received a loan modification in the previous 24 month period. 

Steps to Take

If you are interested in seeing if you qualify for a loan modification, follow these steps:

1.  Gather Financial Information: Make sure you have your basic financial and loan information on hand before you call your lender. This information includes: your mortgage statements, monthly debt payment information such as student loans, car loans or credit card payments, and your income details proven through pay stubs and tax return documents. 
2. Explain Your Situation: Be prepared to outline your current financial hardship and why you're having trouble making your monthly mortgage payments. You will also need to let the lender know if this is a short-term or long-term problem.
3. Once you have completed steps 1 and 2, you're ready to call your mortgage company at the Lake of the Ozarks to let them know you are interested in a loan modification and would like to see if you qualify. 

Lakelender Michael Lasson is here to help with all your Lake of the Ozarks home financing needs. From new home loans to refinancing your home at the Lake of the Ozarks, I'm here to help you every step of the way. For information or questions you may have regarding mortgages, give us a call at 573-746-7211.

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

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

6 Common Problems that Can Arise During the Mortgage Process

As the best mortgage lender at the Lake of the Ozarks, it's my job to make the mortgage process as smooth as possible. Unfortunately, there are a few issues that can arise that are out of our hands. Let's take a look at these common issues and how we can try to avoid them during your Lake of the Ozarks home loan process:

1. Home Inspection. 

While it's rare for the borrower to back out of the deal due to something found during inspection, it does happen occasionally. Unfortunately, there's not much the lender or real estate agent can do if there's an unfixable problem with the property. Many times it's something that could have been disclosed early on, but wasn't. The best way to avoid any issues like this is to ask the seller a ton of questions during the beginning stages, to ensure everything is disclosed as early as possible during the transaction.

2. Appraisal Valuation.

Another common issue that can come up is if the home is appraised higher or lower than the valuation in the initial offer. This problem is much less likely to occur in popular markets, and typically only comes up when there aren't comparable sales. If you're in the market for a 4 bedroom, 3 bath single family home you shouldn't have this issue. It mainly occurs when you're in the market for a million dollar home, which is harder to find something to compare it to.

3. Application Issue. 

While some loan closings are prevented due to the actual property, more often than not the issue arises from the loan application. Sometimes the documentation doesn't match the information provided on the original application. One common error on the application is the amount of qualified income of a self-employed borrower. The income listed on the application needs to match what is listed on the borrower's tax return. Obtaining a pre-approval is a great way to avoid some of the application issues that could arise later in the game.

4. Tax Deductions. 

As stated before, the income on the application has to match what's listed on the tax return. While it may have seemed like a great idea to take all those deductions, when it comes to applying for a mortgage that's not always the case. You can't just add those pieces back into the amount of income you make. You have to go off what your tax return says, whether you actually made more than that or not.

5. Borrower's Credit. 

One of the main issues that can arise during the underwriting process has to do with the borrower's credit. If the borrower has a bad track record for repaying money loaned, the underwriting is going to find that out. The borrower's credit history will be thoroughly gone over and the underwriter may even contact past or present creditors. In addition to credit history, the underwriter is going to look at the borrower's debt-to-income ratio. If the borrower has too much debt relative to their income, problems will arise during the underwriting process. The debt-to-income ratio is one of the most important factors in mortgage underwriting.

6. Bad Timing. 

Mortgage loan closings can also fail due to timing issues caused by last-minute changes. These seemingly simple changes could require the lender to issue a new disclosure statement, therefore delaying the closing. If the seller included a contingency that the closing must occur by a specific date, such delays can be problematic for both the buyer and the seller. Another timing issue can occur when the borrower does something to alter his or her financial standing. Buyers should avoid making any other large purchases or switching jobs until after the closing has occurred.

The best way to avoid these problems is to disclose as much information as you can from the beginning, even if you think it might not be necessary. It's better to disclose too much, than not enough. Be sure to ask your Lake of the Ozarks mortgage lender and your real estate agent as many questions during the beginning of the process and make sure to get a pre-approval before moving ahead with an offer on a house. If you're considering purchasing a home at the Lake of the Ozarks in the near future, give me a call at 573-746-7211. 

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

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

The Home Loan Process in a Nutshell

While the home financing process can seem overwhelming, it's your mortgage lender's job to ensure you get a home loan at the Lake of the Ozarks as quickly and easily as possible. As your Lake of the Ozarks mortgage lender, I'll provide you with regular updates. Anytime you need assistance, I'm just a phone call away - I'll be with you every step of the way! Let's take a look at what you can expect during the home loan process:

STEP 1: Pre-Approval

To get started, just give us a call at 573-746-7211. By providing us with some general financial information, we can determine how much you will be able to borrow. During the pre-approval process, we will also review your credit report and evaluate your debt-to-income ratio. By getting a pre-approval before you start your home search, you may have more buying power and the ability to negotiate the purchase price.

STEP 2: Application 

Once you have selected a property and have a contract with the seller, it's time to put in your loan application. This can easily be done on the First State Bank Mortgage website or just give your mortgage lender at the Lake of the Ozarks a call for assistance in filling out the application. At this time, you will need to have all your documents in order and send them in along with your application. These documents can include: pay stubs & W2's, tax returns, investment & retirement income documentation, bank statments, purchase agreement, etc.

STEP 3: Processing 

During this step, the mortgage lender will review the documentation and provide a loan package for the underwriter. At the appropriate time, we will order an appraisal for you. Keep in mind that applying for a mortgage is an ongoing process that takes into account everything you do up until the day of closing. It is very important that during this processing time, you don't make any big changes such as: incurring new debts like getting a new car or a new credit card, or making any lifestyle changes that could hinder your loan approval. Ask your mortgage lender for recommendations to ensure a quick and smooth loan closing process.

STEP 4: Loan Approval 

Now, the underwriter determines whether the information provided is acceptable to offer the applicant the loan. The underwriter will evaluate your credit, assets, debts and the property appraisal. If more information is needed, you will be contacted to supply it.

STEP 5: Funding 

Your real estate agent or the seller will designate an escrow/title company to handle the funding of your loan. This company will also handle all the other factors that make your purchase go smoothly. For example, they will check the title to make sure it is free of liens associated with any previous owners. During this step, a closing date is scheduled.

STEP 6: Closing 

The loan closing is a meeting where you will complete the paperwork to finalize the purchase of the home from the seller. You'll sign the mortgage documents and receive the deed and keys to your new home!

That is our loan process - Simple, Straightforward, Cost-Effective, and FAST! For more information on getting a mortgage loan at the Lake of the Ozarks, give Lakelender Lasson a call at 573-746-7211. When it comes to your financing needs, I'll discuss options, offer competitive rates and back it up with the first class service you deserve!

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

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

Join us at the Overland Park Boat Show This Weekend!

Kansas City's largest boat show is happening this weekend at the Overland Park Convention Center! Here you can see the latest in 2016 cruisers, runabouts, performance boats, tritoons, ski boats, personal watercraft, docks, lifts and all boating accessories. Join the best mortgage lender at the Lake of the Ozarks for this exciting annual event and be sure to stop by my booth - bring the entire family!

Boat Show Details

Dates & Hours
Jan. 7: 3-9 PM
Jan. 8: 12-10 PM
Jan. 9: 10 AM - 9 PM
Jan. 10: 10 AM - 5 PM

Admission
$9.00 for Adults
$5.00 for Children 6-12
Children 5 & Under are Free

Lake Living

Are you tired of dragging your boat down to the Lake of the Ozarks pretty much every weekend during the summer season?  If you feel like the Lake is your home during the summer, why not actually make it your home away from home by purchasing a second home at the Lake of the Ozarks? First State Bank Mortgage is opening the doors to your Lake home. Make your dream of owning a home at the Lake a reality in 2016!

Maybe you already own a home at the Lake of the Ozarks, but if you're purchasing a bigger boat, chances are you're going to need a bigger dock. If your current space isn't working for you anymore, First State Bank Mortgage can help you upgrade! If you're happy with your current waterfront home at the Lake, but are thinking about refinancing, I can help with that too!

For all  your Lake of the Ozarks home financing needs, call Lakelender Michael Lasson. I'm committed to working with you every step of the way! I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve. Stop by my booth at the Overland Park Boat Show or give me a call at 573-746-7211 today for more information about home financing at the Lake! 

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

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

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