Understanding Real Estate Appraisals - How Your Home's Value Is Determined

Whether you're buying your first home or refinancing for a lower rate, lenders want to make sure your property is worth the money they're putting on the line. A real estate appraisal helps them confirm that the amount of your loan is reasonable based on the current market. It can also influence your interest rate and down payment. Here's what the process usually involves:

You apply for a loan: After you request a loan to purchase or refinance a property, the lender will order an appraisal.

A licensed appraiser visits the property: They may conduct an exterior-only review or complete a full interior inspection.

The appraiser analyzes local market data: They will then compare your property to similar recently sold homes in the area.

They evaluate condition and features: The appraiser factors in square footage, the number of rooms, updates, and overall quality.

You receive a report: Your appraiser will provide you and your lender with the estimated value of the property, supporting data, and an explanation of the methodology they used.

You can expect to receive a copy of this report at least three days before closing. If the appraised value comes in lower than you expected, it may impact how much equity you have. Of course, if you disagree with the appraisal, there are some steps you can take. Review the report thoroughly to look for factual errors, such as missing upgrades or inaccurate square footage. Then, gather evidence, such as photos and receipts for recent renovations. Present this information when requesting a reconsideration of value from your lender.

While the appraiser's job is to stay neutral, you have every right to challenge the report if something doesn't look right. By acting quickly, you may be able to significantly improve your appraisal and secure a more favorable loan.

Sources: Nar.realtor, FDIC.gov, Ronsellsthebeach.com, Nationwide.com

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org

Closing Expectations

Closing is the final step when purchasing or refinancing a home, where all aspects of the transaction are officially completed.

Buying or refinancing a home is a significant milestone for any borrower. However, for those unfamiliar with the process, navigating the mortgage journey can feel overwhelming. Team Lasson and Flat Branch Home Loans are committed to empowering our borrowers with the knowledge they need to navigate the home loan process. Here’s what you can expect during closing:

Payment

At closing, you’ll need to bring a certified or cashier’s check to cover your down payment, if applicable, and closing costs. Some closing agents may require wire transfers instead of a physical check. It’s important to confirm these details ahead of time with your lender or closing agent to ensure a smooth process.

Who's attending?

Depending on where you’re closing, you may see a variety of people involved in the transaction, including:

• The closing agent
• Your lender or their representative
• The seller (if you’re purchasing a home)
• Your real estate agent
• A title company representative, who ensures the property title is transferred correctly

What Happens at Closing

1. Review and sign all necessary loan documents, which will include the deed of trust or mortgage, promissory note, and Closing Disclosure.
2. Submit a certified or cashier’s check (unless a wire was already sent) for the down payment (if required), along with closing costs, prepaid interest, taxes, and insurance. The lender will provide you with the total amount due prior to closing.
3. The lender will transfer the funds for your home loan to the closing agent.
4. Once all legal documents are signed and required payments are made, you’ll receive the keys to your new home.

Preparing for Closing Costs

There are costs associated with closing. Knowing about these can help the closing process run more smoothly. The total amount of closing costs is usually between 3-5% percent of the loan amount.

1. Appraisal and Inspection Fees – These fees, often paid before closing, are necessary to confirm the home’s market value and assess its condition.
2. Title Insurance – Title insurance is a crucial one-time cost that safeguards you against any legal disputes or claims on the property. Though it’s an upfront expense, it offers long-term peace of mind about your ownership rights.
3. Loan Origination Fees - Most lenders charge an origination fee. This fee covers the administrative work involved in processing your loan and is paid at closing.
4. Closing or Settlement Fees - The closing agent or settlement company charges a fee for managing the distribution of funds and overseeing the required documents during the closing process.
5. Government and Recording Fees - These fees cover the cost of filing the necessary legal documents with the appropriate government offices to record the sale or refinance of the property.
6. Third-Party Loan Costs - Additional third-party fees may include charges for flood certification, credit reports, and verification services. These costs vary based on the property and loan type.
7. Property Taxes and Homeowners Insurance - At closing, you’ll prepay your first year of homeowners insurance premiums. Additionally, if your loan requires an escrow account, you may need to make an initial deposit to cover future property taxes and insurance.
8. Private Mortgage Insurance (PMI) - If your down payment is less than 20%, PMI may be required. Depending on your lender, this could be a one-time payment at closing or included in your monthly mortgage costs.

Quick Closing Checklist

The closing process can be daunting. Here is a quick and easy checklist to make sure you are prepared for closing: 

• Bring a valid photo ID.
• Verify your final closing costs and wire transfer instructions.
• Review all documents before the appointment.
• Complete your final walkthrough.

Closing Out   

Closing is an exciting and essential step in the homebuying or refinancing process. Team Lasson is here to ensure you feel confident and informed every step of the way. By understanding what to expect, you’ll be well-prepared to finalize your home loan and step into your new chapter with ease.

If you have any questions about the closing process or need additional guidance, don’t hesitate to reach out to our team. We’re here to help you every step of the way!

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

For more licensing information, visit NMLSConsumerAccess.org

What’s Trending in Today’s Housing Market?

The housing market is ever evolving-and so are the homes buyers are choosing. Whether you’re dreaming of a spacious Mediterranean villa or a cozy Colonial, knowing what’s trending can help you shop smarter and feel more confident in your decisions.

Colonial & Traditional American Styles

Classics never go out of style. Colonial and Traditional American-Style homes remain the most common on the market, making up nearly half of all homes for sale this spring. Their symmetrical design, timeless appeal, and family-friendly layouts continue to attract buyers across the country.  

If you're looking for something familiar, functional, and full of charm, a Colonial-style home might be the perfect fit.

Mediterranean Homes

Mediterranean-style homes—known for their stucco walls, red tile roofs, and expansive layouts—are among the largest and priciest properties available today. That’s no surprise, considering they’re most common in high-cost markets like Los Angeles and Miami.

While these homes offer plenty of luxury and curb appeal, they tend to come with a higher price point, which may be a consideration for today’s more budget-conscious buyers.

Bigger Isn’t Always Better

Over the past six years, larger homes have seen slower price growth compared to their smaller counterparts. That’s largely due to a shift in buyer preferences: many house hunters are prioritizing affordability and value over square footage, especially in lower-cost neighborhoods.

Smaller homes in desirable communities are becoming more attractive, particularly for first-time buyers or those looking to downsize.

Why This Matters

Understanding housing trends isn’t just for real estate professionals—it’s essential knowledge for anyone navigating today’s competitive market. Whether you’re just starting to browse or ready to make an offer, having the right information can help you feel more confident and in control.

At Flat Branch Home Loans, we keep a close eye on market trends so we can help guide you through the process, every step of the way. If you're ready to start your home search, we're ready to help.

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.

Debunking the Myth: Why a 20% Down Payment Isn't Always Required for a Home Loan

The dream of homeownership is an aspiration for many, yet the perceived hurdle of scraping together a 20% down payment often stands as an intimidating barrier. However, contrary to popular belief, a 20% down payment is not an absolute requirement when seeking a home loan. The real estate landscape has evolved, and various financing options now offer flexibility to suit different financial situations.

Low Down Payment Options

Traditional loans used to mandate a 20% down payment to avoid private mortgage insurance (PMI). However, today, many lenders offer loans with significantly lower down payment requirements. FHA loans, backed by the Federal Housing Administration, can require as little as 3.5% down, while conventional loans can offer options for 3% down. USDA loans and VA loans even offer 0% down options. These loans provide an entry point for prospective buyers with limited upfront funds.

Down Payment Assistance Programs

Many government programs aim to make homeownership more accessible. VA loans cater to veterans and their families with 0% down options. USDA loans provide financing for eligible rural and suburban homebuyers with minimal down payments. Additionally, there are other Down Payment Assistance programs to provide funds for down payments, too. These initiatives empower potential buyers who might struggle with a hefty down payment.

Diverse Financial Profiles

Lenders consider a variety of factors when evaluating mortgage applications. A strong credit score, steady income, and low debt-to-income ratio can compensate for a lower down payment. Lenders often weigh these factors to determine an applicant's risk level and establish loan terms accordingly.

In conclusion, the notion that a 20% down payment is mandatory to secure a home loan has been dispelled by improved financing options and innovative mortgage solutions. Low down payment loans, down payment assistance programs, and a holistic view of an applicant's financial profile collectively contribute to a more accessible path to homeownership. As the real estate landscape adapts to changing times, prospective buyers should explore all available options and consult with knowledgeable professionals to determine the best approach for their individual circumstances.

Team Lasson is here to assist with all of your home buying needs!  If you’re considering taking the leap into home ownership in the near future, we’re here to help.  Contact us today to explore which loan program aligns best with your financial goals. 

The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Visit www.yourlakeloan.com or call us at (573) 216-7258 to get started today!

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com 

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc.