Pages

▼

Tuesday, January 30, 2018

The Income-Assets-Credit Triangle

To obtain a mortgage at the Lake of the Ozarks, you'll need to satisfy requirements in three financial aspects: income, assets and credit. These components make up what is known as the "Mortgage Approval Triangle." While each type of loan program has different requirements, when these three factors are balanced, a mortgage approval is likely. Keep reading to learn more about each of these categories and how to balance the triangle.

The "BIG 3" of Lending


When it comes to mortgage lending on purchase transactions, the "BIG 3" is usually income, assets and credit. For the income portion, your Lake of the Ozarks mortgage lender will take a look at your debt-to-income (DTI) ratio. This is your monthly taxable income versus your monthly household debt. For the assets portion, your checking, savings, investment and retirement accounts will be reviewed for down payment funds and reserves. For the credit portion, your lender will pull your credit report and take a look at your credit score, along with other information contained in the report. Depending on the type of loan you are applying for, you'll have minimum requirements to meet in each of these categories. Your lender will be able to help you find the loan product that fits best with your financing needs.

Compensating Factors


Ideally, every mortgage applicant would have a strong income, large amount of assets and great credit. In all reality, this is usually NOT the case. Don't worry! If you have poor credit or limited assets, you're not necessarily going to be denied for a loan. This is where compensating factors come into play. Compensating factors are strengths in a person's mortgage application that will compensate for a weakness. As an example, if a borrower has low income, but also has amazing credit and ample assets,there's a chance that person may still be approved. Everyone's situation is different, and that's why it's so important that you work with a qualified mortgage professional at the Lake of the Ozarks to discuss your personal situation.


To learn more about or to get started with the mortgage loan approval process, call 573-746-7211. Whether you're in the market for your first home, looking to upgrade or maybe refinance your current home, I'm committed to helping you make that happen! When it comes to your Lake of the Ozarks home financing needs, I'll discuss your options, offer competitive interest rates and back it up with the personal and professional service you deserve.

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.







at No comments:

Friday, January 26, 2018

5 Reasons to Consider Buying a Home Today

The decision to purchase a home is one of the biggest decisions you'll ever make in your lifetime. As a mortgage professional at the Lake of the Ozarks, I'm here to help prospective homeowners by answering all of their questions. In today's blog, we discuss some of the reasons why you should consider buying a home. Do any of these benefits sound appealing to you?

1. To Avoid Rising Rent Prices. 


Areas across the country have seen a gradual increase in rent prices. In many cases, a mortgage payment would be less than your monthly rent payment. While there are other expenses to consider, like homeowners insurance, real estate taxes and maintenance costs, it might be time to consider purchasing a home instead of continuing to rent. If you are financially and emotionally ready, owning your own home offers a lot of great benefits.


2. To Build Equity.


When you're renting your home, you're helping someone else build equity, but when you own your home, you're building equity for yourself. Purchasing a home at the Lake of the Ozarks is an investment. The great thing about investing in real estate is that homes tend to increase in value over time. In addition, you can use that equity to your advantage in the future; for example, to upgrade your home, use for educational or medical expenses or put towards retirement if/when you downsize.

3. To Get a Tax Break.


While the new tax code is changing a few things, there are still great tax benefits available for homeowners. During the first few years, your Lake of the Ozarks mortgage payment will mostly apply to interest on the loan. You can deduct a percentage of that mortgage interest from your taxes, reducing the overall tax liability you have to pay each year. Who doesn't love the thought of paying less taxes?

4. To Gain Stability.


At a certain point in life, people start seeking stability. Newlyweds or those couples looking to start a family are good examples of people seeking more stability in their lives. Owning your own home gives you a sense of stability that you may be missing. You can select the neighborhood to raise your children in, schools they will attend and you can start getting a sense of community. Therefore, it's important to think about those aspects when purchasing a home.

5. To Take Advantage of Low Interest Rates. 


While we're likely to see some big changes in the economy in the coming year, mortgage rates currently remain quite low. If you've been considering buying a home at the Lake of the Ozarks, now's the time to do so, before we start to see those rates rise again.

If you're ready to take the next step toward homeownership, give me a call at 573-746-7211! As your Lake of the Ozarks mortgage lender, I'm here to help you every step of the way. I'll discuss your 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 


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.






at No comments:

Thursday, January 18, 2018

5 Tips for Getting Through the Mortgage Approval Process

One of the biggest investments you'll ever make in your life is purchasing a home. To get there, you're going to have to go through the mortgage approval process. This can be long and confusing if you're not working with the right mortgage lender at the Lake of the Ozarks. In today's blog, we offer a few tips for getting through the mortgage approval process, quickly and painlessly.

1. Review Your Credit Report. 


The first big hurdle in the mortgage approval process is your credit score, which is a big determining factor in your mortgage. A low credit score could affect your interest rate, costs or even cause your application to get denied. Before you start the Lake of the Ozarks home loan process, be sure to review your credit report. Make sure you are aware of what your credit score is. Talk to your mortgage professional about correcting any mistakes that may have been made on your credit report and if there are any ways you can improve your score before you take the next step in the home buying process.

2. Have Your Documents in Order. 


Your credit score is just one of the factors that a Lake of the Ozarks mortgage lender will take into account. Your lender is going to need documentation on your income, assets and monthly debt payments. Your debt-to-income ratio also plays an important role in the mortgage approval process. You can improve your chances by paying off some debts prior to applying for a mortgage loan. Talk this over with your mortgage lender at the Lake of the Ozarks first. However, if that's unrealistic, just ensure you don't take on any new debts while going through the mortgage process.

3. Get a Mortgage Pre-Approval. 


One of the first steps in the mortgage approval process is getting a pre-approval. It is very important to understand the differences between a pre-qualification and a pre-approval. A pre-qualification is a preliminary determination that you should be able to get approved, and this can be done at any time. The purpose is to determine how much of a loan you could be approved for and the down payment you would need to make; however, a pre-qualification is not binding, it's more of a hypothetical situation. A pre-approval is more attractive to sellers and real estate agents because it demonstrates that you would be a good candidate for loan approval because you've already done the necessary credit check and other financial evaluations. On a pre-approval, all your information and documentation has been obtained and reviewed by an underwriter to determine that you qualify for the loan program you applied for.


4. Don't Change Employers. 


Once you've begun the mortgage approval process, be careful that your activities don't do anything to jeopardize it. Not opening any new credit accounts or taking on any new debt was mentioned earlier, but you also don't want any changes in income, which includes changing employers. Your lender wants to see a steady income from the same employer. Changing jobs, even if it's within the same industry and roughly the same pay or more, is not a good idea. You, and the lender, don't know if this new job is going to work out the way you expect it to. Refrain from making any changes to your job or income as it can have a major effect on your mortgage approval. Stability is very important in the mortgage approval process.

5. Have the Home Appraised. 


The home appraisal plays a critical role in the mortgage approval process. A mortgage lender is not likely to lend more money than what the property is worth. If the appraisal determines that the property is not worth the asking price, you will either have to renegotiate with the seller, bring in additional funds at closing or find a different property.

If you're ready to start the mortgage approval process, give me a call today at 573-746-7211. When it comes to your Lake of the Ozarks home financing needs, 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.

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.






at No comments:

Wednesday, January 10, 2018

The New Tax Code and Mortgage Rates

On December 22, 2017 a new tax code was signed into law. This code includes the biggest tax cuts we've ever seen in the history of the United States. It brings a number of changes, some of which will directly affect prospective home buyers and current homeowners. So how does the new tax code affect homeowners and mortgage rates at the Lake of the Ozarks? Keep reading to find out.

Homeowner Tax Changes


One big change in the new tax code is in regard to property tax write offs. Homeowners will no longer be able to write off unlimited property taxes. Those items are now capped at $10,000. In addition, the mortgage interest deduction is now only applicable to the first $750,000 in mortgages, which has been lowered from the $1 million limit it was previously at. While these changes in the tax code itself won't necessarily have a direct impact on mortgage rates, the economic impact of this law could.

The Effect on Mortgage Rates


The new tax code cuts the corporate tax from 35% to 21%, which should spark economic development. With the increased funds now available, corporations could focus on expansion and hiring. This can lead to increased inflation, which could lead to higher mortgage rates. The tax rates for individuals have also slightly decreased, which could add to economic expansion when that extra money is spent. More money flowing through our economy could cause mortgage rates to rise.

Another factor that could directly affect mortgage rates is is the supply of bonds. Some estimates show an increase of hundreds of billions to $2 trillion to the federal deficit. That increased debt would be financed by selling more Treasury Bonds. While Treasury Bonds don't guide mortgage rates, mortgage-backed securities do. A bigger supply of bonds would dampen investor demand and, therefore, rates would need to rise to keep investors buying. Higher rates on mortgage-backed securities mean higher rates for consumer mortgages, as well.

While it's not expected for mortgage rates to spike overnight, a gradual increase is expected as we move further into 2018. If you're considering purchasing a home at the Lake of the Ozarks, now's the time to do so, before the rate increases begin. Call 573-746-7211 to discuss your home financing needs with a professional mortgage lender at the Lake of the Ozarks today!

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.





at No comments:

Friday, January 5, 2018

A New Year, A New Home

Are you ready to make some changes in 2018? Your local Lake of the Ozarks mortgage lender is here to help! Whether you need to upgrade your home because you have a new addition to the family or you're ready to downgrade because your children flew the coop, we are here to help with all your Lake of the Ozarks home financing needs!

Mortgage Rates


Last year was a great year for home buying as mortgage rates remained near all-time lows throughout 2017. What's the forecast for 2018 look like? According to The Mortgage Reports, mortgage rates are still low in January 2018, but they won't be for long! Analysts are calling for higher rates this year, partially due to the new tax code which could lead to inflation. However, there's still a great opportunity for those looking to purchase a home at the Lake of the Ozarks in 2018. Freddie Mac, who's been tracking rates for 45 years now, states that mortgage rates have remained below 4% for 23 straight weeks. Now's the time to get started with a pre-approval for a mortgage if you're thinking about buying in 2018!

Loan Options


At First State Bank Mortgage, we provide a full portfolio of fixed- and adjustable-rate mortgage products. From first-time homebuyers to veterans, we've got something that will work for you. Check out some of our loan options below:

Conventional Loans

Conventional loans offer competitively-priced rates and up to 95% financing of your home’s value – whether you’re looking to purchase a new home or refinance your current loan.

FHA Loans

FHA loans offer competitively-priced rates and a low down payment option – whether you’re looking to purchase a new home or refinance your current loan.

USDA Loans

Rural Housing loans, sponsored by the U.S. Department of Agriculture, are designed to make homeownership more affordable for borrowers in rural communities. For qualified borrowers, a Rural Housing loan can provide up to 100% financing with competitive rates and terms.

VA Loans

With favorable terms, competitive interest rates, and no monthly mortgage insurance premium, VA Loans are designed to make homeownership more affordable for qualified U.S. veterans.

First-Time Homebuyer Program 

The First Place Loan program gives first-time homebuyers and qualified veterans the edge they need to purchase a home. Affordable interest rates, in combination with additional incentives offered by the Missouri Housing Development Commission (MHDC), allow prospective buyers to obtain mortgage financing in a competitive market.

For more information on our loan options, please visit:  http://mortgage.fsbfinancial.com/TypesofLoans.aspx.

Discuss your personal situation with your mortgage lender at the Lake of the Ozarks and we'll help you determine which loan best fits your needs. As your lender, I'm here to work with you every step of the way. I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve! Get started by giving me a call at 573-746-7211 today.

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.







at No comments: