Fun Facts About Renters (and Why You Should Consider Buying)

One of the most important financial decisions you have to make is whether to rent or own your home. While there are benefits to both renting and owning, many renters don't realize how much they could potentially be saving by investing in a home today. In today's blog, your Lake of the Ozarks mortgage lender offers a few facts and considerations about renting vs. buying.

Fun Facts About Renters

1. According to the National Multifamily Housing Council, 37% of households in the United States rent, while the other 63% prefer homeownership.

2. According to NAR Chief Economist Lawrence Yun, the average renter missed out on $41,000 in equity by not buying three years ago.

3. Nationally, 50% of all renters spend more than 30% of their income on housing according to the NY Times.

4. According to PulteGroup, 89% of renters think owning a home is part of the American Dream.

5. Approximately 32% of potential homebuyers plan to buy in the next couple years. 

6. Around 90% of millennials prefer owning a home over renting one. 

7. The median gross rent from 2011-2015 was $758.

8. Buying a home is roughly 45% less expensive than renting.

9. According to Trulia, rent prices have risen by 4.7% in the past year, while asking home prices have only risen 2.3%.

Considerations About Renting vs. Buying

While renting is a great short-term option, financial gains of homeownership are applicable if you plan to stay in the home for 5-10 years. With current interest rates extremely low, most renting situations are more expensive than owning. In addition, when you choose to rent, you aren't building equity. Creating an asset, providing a legacy and increasing net worth are all benefits of becoming a homeowner that you can't get as a renter. With the help of a mortgage professional at the Lake of the Ozarks, you can weigh the pros and cons of buying and renting to decide which option best suits you in the short-term and the long-term.    

While renting might be the best option for some people, you can see from the facts above that homeownership has its benefits. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 to discuss your options. With mortgage rates still hovering near all-time lows, now is the time buy! I'm committed to working with you every step of the way. I'll discuss Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve! 

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

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.

4 First-Time Homebuyer Mistakes to Avoid

You're tired of renting and considering purchasing your first home. Where do you start? Your favorite mortgage lender at the Lake of the Ozarks is here to help! Keep reading to learn about a few of the most common mistakes first-time homebuyers make.

1. Failing to Consider Additional Homeownership Expenses. 

Whether or not you can afford a monthly mortgage payment isn't the only expense to consider. Along with homeownership comes added expenses you don't have as a renter. Expenses you'll need to consider include: property insurance, taxes, homeowner's association dues, maintenance and higher electric and water bills. By adding the costs onto the initial monthly mortgage payment, you'll better be able to understand the true cost of homeownership and see if it makes sense for you.  

2. Choosing Not to Enlist Professional Help. 

While searching for a new home may seem like something you can do on your own, you really should consider consulting the experts. Especially if you're new to homebuying, you'll need a reputable real estate agent, a good loan officer and possibly a lawyer. When choosing who to work with, be sure to get references. As a first-time homebuyer, you may have difficulty knowing who you can trust with such a big investment. Make sure to do some research first, and if you have a mortgage lender you know you can trust, ask him or her for recommendations on a real estate agent and vice versa. 

3. Searching for a Home Without a Mortgage Pre-Approval. 

The journey of purchasing a home is exciting. However, it's easy to get caught up in the whirlwind of excitement that goes along with finding your dream home. Before you start searching for a home, talk with your Lake of the Ozarks mortgage lender about getting a pre-approval. This not only helps you understand what you qualify for, but also what price range you can afford. By starting with a pre-approval, you'll avoid making an emotional decision over a financial one.

4. Draining Your Savings to Make a Downpayment. 

One of the biggest mistakes first-time homebuyers make is draining their savings account to come up with the downpayment and closing costs. While putting down 20% so you don't have to pay private mortgage insurance may seem like a great idea, depleting your entire savings is risky. Keep in mind those expenses from before, as well as the possibility of an emergency situation arising, and you'll want to make sure you have some cash in savings to cover those types of things.

Now that you know what NOT to do when purchasing your first home, it's time to get started. As mentioned above, the first step is to meet with a trusted mortgage professional at the Lake of the Ozarks. I'm here to work with you every step of the way. I'll discuss financing options, offer competitive rates and back it up with the first class service you deserve. Call 573-746-7211 to start the pre-approval process today!

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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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 411 on Loan Modifications

During times of financial hardship, it can be difficult to make your monthly mortgage payments. One way to make your payments more affordable is through a loan modification. Today's blog from your favorite mortgage lender at the Lake of the Ozarks discusses loan modifications and some tips for getting one approved.

Loan Modifications

A mortgage loan modification is an arrangement between the borrower and the lender that reduces the mortgage obligations during a time of financial hardship. The purpose of a loan modification is to make the payments easier for the borrower and avoid losing their home to foreclosure. Like the term implies, this arrangement is where the terms of the loan are modified or changed to make the loan more affordable. This could be reducing the mortgage rate or extending the loan term. In some cases, the lender may even write off some of the principal.

Getting a Loan Modification Approved

Approval for a loan modification can be difficult to obtain. When applying for a loan modification, the borrower must meet some qualifying criteria which includes: experiencing a documented hardship or change in financial circumstances, owning and occupying the property as a primary residence, having not filed for bankruptcy, not purposely defaulting to get a modification and being responsive in working with the lender. You must submit documents to prove the financial hardship. This includes paycheck stubs, a hardship letter, a budget and any other documents the loan servicer requests. Make sure you know exactly what is required of you. Misunderstandings about documents can cause complications in the approval process.

Writing the Hardship Letter 

The hardship letter is very important and must provide a valid reason. Some of the most common reasons include payment shock, job loss, work cutbacks or pay reductions, underemployment, declining business or sales revenue, illness or injury, divorce or separation, disaster, incarceration or other legal issues. The letter itself should be simple, financially informative and based on facts. Be sure to clearly outline the financial burden you're trying to overcome. Then explain why a loan modification is the best solution.  

If you're going through a hardship and struggling to make your mortgage payments, talk to your Lake of the Ozarks mortgage lender to see if a loan modification is a possibility for you. During these times, it's important to communicate with your mortgage lender. I'm here for you every step of the way!

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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.

Understanding Your FICO Score

When applying for a mortgage loan at the Lake of the Ozarks, the lender needs to determine how likely it is that you will make your payments. How does a lender do this? The FICO Score is the credit score most lenders use to determine your credit risk. In today's blog, your Lake of the Ozarks mortgage lender helps you understand what this number means.

What is a FICO Score? 

FICO Scores are the most widely used credit scores. They are a type of credit score created by the Fair Isaac Corporation. The Fair Isaac Corporation is a company specializing in "predictive analytics," meaning they take information and analyze it to predict what's likely to happen. While they do create credit scores, FICO itself is not a credit reporting agency. They use information provided by Equifax, Experian or TransUnion. The FICO Score, along with other details, is used to assess credit risk and help lenders determine whether or not to extend credit.

How is a FICO Score Determined? 

FICO Scores range from 300 to 850. In general, scores above 650 indicate good credit, while those below 620 indicate bad credit. The score takes into account information from 5 different areas, each weighed differently:

• Payment History - 35%
• Current Level of Indebtedness - 30%
• Types of Credit Used - 10%
• Length of Credit History - 15%
• New Credit Accounts - 10% 

The importance of any one of these factors is also determined by the overall information on your credit report. For example, if you haven't been using credit very long, your score will be factored differently than those with a longer credit history. 

Understanding a FICO Score

The first thing a mortgage lender at the Lake of the Ozarks wants to know is whether or not you've paid past credit accounts on time. Next important is how much you currently owe. However, having credit accounts and owing money on them doesn't necessarily mean you are a high-risk borrower. The length of your credit history also plays an important role in establishing your FICO Score. In general, a longer credit history will increase your FICO Score. Your credit history takes into account how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average of all your accounts. Credit history also looks at how long specific accounts have been established and how long it's been since you used certain accounts. The next step is to look at what types of credit you have, including credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. New credit accounts will also come into play. Research shows that opening several credit card accounts in a short period of time represents greater risk. 

Your FICO Score is not only used to determine whether or not you'll be approved for a home loan at the Lake of the Ozarks, but also to determine what interest rate will be offered to you. If you are concerned about your FICO score and how it will affect your chances at a mortgage, talk to the best mortgage professional at the Lake of the Ozarks. I'm here to help you every step of the way, from your pre-approval all the way to closing on your dream home at the Lake! 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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

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.