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Wednesday, July 25, 2018

5 Benefits of Owning Your Own Home

Homeownership is part of the "American Dream." Owning a home means putting down roots and having a place that is all your own. Buying a home is one of the biggest investments you'll ever make, but it does come with its benefits. Keep reading to learn about some of benefits of owning your own home from your Lake of the Ozarks mortgage lender.

1. You Build Equity. 


One of the most obvious benefits of homeownership is that you are gaining equity. With each mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. In addition, as your home increases in value, it creates more equity for you. When you subtract the amount you owe on your home from the total value of your home, the amount leftover is your home equity, or the "dollar" value of your home that actually belongs to you.

2. You're Making an Investment. 


When you rent your home, you get little to no return on investment. Paying rent each month doesn't offer any return on investment beyond securing a place to live through the end of the month or lease. Unlike other investments, like a vehicle, a home is a purchase that appreciates over time. While home prices are cyclical, if you stay in your home for a long period of time, it could increase in value, giving you a substantial return on your investment.

3. You Receive Tax Benefits. 


Homeownership has some advantages when it comes tax time as well. The federal government encourages homeownership by offering tax incentives. The biggest one being, the option to deduct interest from your mortgage payments on your income tax return. Payments on private mortgage insurance and certain home-related purchases may also qualify for tax benefits.

4. You're Able to Make Modifications. 


When you own your own home, you have the freedom to do whatever you want to it. You can paint the walls whatever color you desire, alter the layout of the home and more! Renting doesn't usually come with a lot of options for modifying your living space to better suit your needs. Homeownership allows you to live life by your own rules. Plus, home improvements typically lead to increased home value.

5. You Save Money in the Long-Term. 


While there are upfront costs to purchasing a home at the Lake of the Ozarks, if you stay in the same place long enough, you'll most likely be saving money. In the majority of U.S. markets, owning a home is less expensive than paying rent. Consider a $1000 per month rent payment. Over 10 years, that adds up to $120,000 that you could be using to pay down a mortgage instead of handing it over to a landlord. That doesn't even factor in that rent prices are constantly rising. When you purchase a home, you can lock in your monthly payment for 30 years!

With interest rates still low, now is a great time to consider homeownership and start taking advantage of these benefits. Give me a call at 573-746-7211 to discuss your Lake of the Ozarks home financing needs today! As your Lake of the Ozarks mortgage lender, I'll be here to work with you every step of the way, from the pre-approval to the closing and beyond.

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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Thursday, July 19, 2018

7 Financial Considerations for Home Buying

Whether you've been thinking about buying a home at the Lake of the Ozarks for a while now or the thought is just now crossing your mind, it's never too early to start looking at your financial situation and get an understanding of the expenses and financial commitment associated with the purchase of a home. Keep reading to learn about some of the financial considerations you'll want to make before jumping into the home buying process.

1. Your Debt-to-Income Ratio. 


One of the first things to consider is your debt-to-income ratio. This number will be able to give you a pretty clear picture of what you can afford to spend on housing without having to live on sandwiches for years to come. As a general rule of thumb, you don't want to go over 40% of your net pay in debt payments - and a Lake of the Ozarks mortgage lender isn't likely to approve you for more than that either. First take a look at your current monthly debt payments, this can include a car payment, credit card payments, personal loans, etc. Once you know how much that is, add in your expected monthly mortgage payment and see how that number compares with your monthly income. You don't want to buy a house that will cause you financial strain for years to come.

2. The Closing Costs. 


As with anything you buy or sell, there are going to be transaction costs. From the home inspection to the title insurance fees, there are additional costs associated with a real estate transaction that you'll want to consider for your budget. The closing costs will run around 2-3% of the total cost of the home. Your mortgage lender at the Lake of the Ozarks will provide a Loan Estimate statement that will detail percentages and financing fees before the closing. Be sure to review this document with your lender to ensure you understand it.

3. A Proper Down Payment. 


While there are programs out there now that allow for a little to no down payment, you should really consider the importance of a down payment. Traditionally, you had to have a 20% down payment to get a mortgage. While that's not required today, it's still a great number to strive for. If you can put 20% down, you can avoid paying Private Mortgage Insurance (PMI). A sizable down payment will save you more money in the long run, on both the insurance fees and the total interest paid on your loan.

4. Taxes, Dues and Other Fees. 


When it comes time to take on a mortgage payment, that price tag on the house isn't the only thing you'll be paying for. It's important that you take into consideration the property taxes and homeowners insurance you will have to pay, as well as any homeowner's association dues. Certain locations in neighboring cities or counties could have different tax brackets to consider. Homeowner association dues will vary from place to place as well. Be sure that you understand these "other fees" before committing to a particular home. You'll need to add these expenses into your budget.

5. Maintenance Costs. 


Most people get so wrapped up in the benefits of owning their own home, they don't think about the additional costs they might incur for maintenance on their home. When you are a renter and something goes wrong with your AC or an appliance, you just call the landlord to fix it. You likely don't have to worry about mowing your lawn or other upkeep on the property. These things are often taken for granted. When you choose to become a homeowner, these are things you're going to have to take care of yourself now. It's not a good idea to rack up a bunch of credit card debt as a new homeowner, so be sure to have some cash on hand for unexpected expenses. Don't use everything you have for the down payment and closing costs.

6. Utility Bills. 


The utility bills associated with owning a home are often higher than those in a rented apartment. Take the water bill for example. While your landlord was footing the bill for the sprinkler system before, now it's your responsibility to pay to keep your lawn and landscaping looking great. Home features such as skylights, large windows and high ceilings may look great, but they aren't necessarily great for your electricity bill. Ask the current owners of the home how much they pay in utilities each month to get an idea of what you need to budget for.

7. The Long-Term Value. 


Another consideration to make when looking at homes to buy is the long-term value of that home. Unless you have great negotiating skill or just a lot of luck, you're likely going to pay close to market value for the home you choose. You'll want to consider what would happen should the market conditions change by the time you're ready to sell. Are there ways that you can add some value to your home? If/when you do decide to sell, you want to be sure that you can at least recoup your investment.

When determining housing expenses, the costs can easily creep up. You think you can afford a certain amount each month on housing, but in all honesty that likely doesn't include other expenses outside of your mortgage.

This is why a budget is so important! Not only do you want to get a mortgage pre-approval at the Lake of the Ozarks to get an idea of what your lender says you can afford, you'll want to take all these items above into consideration to determine what you personally can comfortably afford. As your Lake of the Ozarks mortgage professional, I'm here to work with you every step of the way and answer any questions that you may have about the home buying and mortgage process. Feel free to reach out to me anytime by calling 573-746-7211.

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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Thursday, July 12, 2018

3 Reasons to Purchase a Home Now

With interest rates remaining historically low and home prices expected to increase, 2018 could be the perfect year for you to purchase a home at the Lake of the Ozarks. Keep reading for a few reasons why NOW is the time to buy!

1. Mortgage Rates are Still Low. 


For now, buyers can still take advantage of low interest rates on mortgages. Unfortunately, it's not likely to continue to stay that way. While mortgage rates have been edging slightly higher in recent months, they continue to stay near historically low levels. In 1981, the average interest rate was nearly 19%. When you compare today's rates to those, you can see that now is a great time to invest in a new home. For information on what rates you qualify for, contact the best mortgage lender at the Lake of the Ozarks for a pre-approval.

2. Home Prices are Rising. 


One of the biggest issues in the housing market today is inventory of homes for sale. Due to favorable interest rates and low supply, demand is driving housing prices up. The latest S&P CoreLogic Case-Shiller Index showed that the average home cost increased by 6.4% between April 2017 and April 2018. This trend is not expected to slow down either. For those in a position to buy, now's a great time to act. In addition, buying now could be a wise investment decision. If you plan to stay in your house for a while, even a steady increase in home prices could cause your home to appreciate in value.   

3. Rent Prices are Increasing. 


Owning vs renting your home may be one of the biggest debates regarding housing. You can argue about which is better, but there's no denying that rent prices are increasing across the country. When you run the numbers, if you're planning to stay in your home for more than just a few years, it usually makes more financial sense to purchase home. Calculate the difference between renting and buying a home with our online Rent vs. Own Calculator. When you own your own home, you don't have to worry about your landlord raising the rent each year when your lease is up for renewal.

Are you ready to dive in and start your home search this summer? Senior Loan Officer Michael Lasson is here to help! Contact us at 573-746-7211 to get started today. As your Lake of the Ozarks mortgage lender, I'll discuss your 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:

Friday, July 6, 2018

5 Tips for Rebuilding Your Credit After Bankruptcy

While getting a mortgage at the Lake of the Ozarks after going through bankruptcy is challenging, it's not impossible. Your dream of owning your own home is still possible with a little hard work to build your credit back up. There's no quick fix for improving your credit over night, but following these steps can get you going in the right direction.

1. Open a New Credit Card Account.


Start by opening a secured credit card. They are typically easy to get and are a great way to rebuild your credit. You provide the bank with a deposit and then you are issued a card with a limit equal to that deposit. While the card works just like any other credit card, you charge expenses and then get sent a bill that you pay each month. The key here is to obtain a card from a quality bank and stay away from offers with extreme interest rates.

2. Pay Your Bills On Time.


Most people think about big bills such as rent, car loans and credit cards affecting their credit score, but it's also important to pay the small things on time. Utilities, medical bills, library fines, cell phone plans, gym memberships and traffic tickets can all impact your credit score. If you're regularly late on payments, you could be reported to a collection agency, which will lower your score. Even if you pay off the collection, it will remain on your credit report for up to seven years.

3. Apply for Credit Cautiously.


When you apply for new credit, do so with caution. Any new applications will typically result in a "hard inquiry" on your credit report. While the impact varies from person to person, hard inquiries can negatively affect your credit score. Opening several new lines of credit within a short time frame can indicate that you're having money troubles, and that can negatively affect your credit score.

4. Don't Close Old Accounts.


While it may seem like closing accounts would be a good idea to reduce the amount of debt you can rack up, closing credit accounts reduces the amount of credit you have available, which increases your overall credit utilization rate. This can result in a lower credit score. It's best to keep the account open, but if you are tempted to overspend, you can cut up the card.

5. Monitor Your Credit Closely.


Monitor your credit closely for accurate information. Make sure that all the accounts that were discharged in the bankruptcy are accurately reported as "Discharged in Bankruptcy" as opposed to stating "Charge Off" or any other inaccurate information. Any mistakes found should be immediately reported to the credit reporting agency.

After you've completed the required waiting period for the loan of which you want to apply, and you've rebuilt your credit, talk to a mortgage professional at the Lake of the Ozarks about your home financing options. I'm here to work with you every step of the way through the mortgage process. Give 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: