FAQs About Closing Costs

Buying a home at Lake of the Ozarks is a big undertaking that can feel so rewarding when you finally sign all of the paperwork and get your keys! Of course, there is still one more piece of the puzzle that you will also do on closing day and that is to finalize your costs. If you aren’t sure what is involved in closing costs, we are going to take a look at a few frequently asked questions about closing costs and what they are!

Q: What Do Closing Costs Cover

A: If you’re curious about what closing costs cover, you’ve come to the right place! They are made up of a combination of payments to vendors, government entities, and your lending institution. All of these businesses played a role in helping you get your new home, which is why the closing costs are there. Closing costs are payable with your down payment, but they are separate fees.

Here are some of the most common fees that could be included with the closing costs:

• Appraisal Fee
• Attorney Fees
• Closing Fees
• Credit Report Fee
• Discount Points
• Document Preparation Fee
• Escrowed Deposits for Property Taxes and Insurance
• FHA Up-Front Mortgage Insurance Premium
• Flood Determination Fee
• Home Inspection
• Home Warranty
• Homeowner’s Association (HOA) Fees
• Homeowners Insurance Premium for first year
• Miscellaneous State and Local Fees
• Notary Fee
• Owner’s and Lender’s Title Insurance Policy
• Origination Fee
• Pest Inspection
• Prepaid Interest Fee
• Private Mortgage Insurance Fee (PMI)
• Property Tax
• Real Estate Agent Commission
• Recording Fees
• Settlement Fee
• Survey Fee
• Title Company Title Search Fee
• Title Insurance and Binder
• Title Search
• Transfer Taxes
• Wire Transfer Fee
• VA Funding Fee

Q: How Much Are Closing Costs?

A: It’s hard to pin down exactly how much the closing costs are going to be, but they generally range between 2-5 percent of the total sales price.

Q: When are Closing Costs Due?

A: You can anticipate that the closings costs are due on the day of closing, however some purchases and fees may be paid independently of closing.

As you can see, there are a lot of processes that go into the purchase of a home and the costs involved. This is not a comprehensive list, and you will need to talk with your lender to determine an estimate of what your specific closing costs will be.

For more information about what's involved with financing a home at Lake of the Ozarks, give Lakelender Michael Lasson a call at 573-746-7211. I'm committed to working with you every step of the way. 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 

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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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

Tips to Help Speed Up the Mortgage Process

The mortgage process can often feel like a long and daunting event, but it doesn’t have to be. While there are always aspects of the mortgage process that can’t be controlled, there are so many things that you can set the pace for. Team Lasson wants to help you purchase your Lake of the Ozarks Vacation home, and we want to help you get everything in order as fast as possible. This real estate market has been busy, to say the least, so anything that you can do to help speed it up on your end is going to be very helpful.

Gather Your Documents

This is one of the first things you can do to get a head start and help speed up the mortgage process. Getting your loan approved will require a series of documents, and if you have them ready at a moment's notice, the pre-approval process will be much smoother and faster. Here are a few documents that you will want to dig out of your files.

Personal Information:

• Social Security Number
• Date of Birth
• Current driver’s license or photo ID
• Current and previous addresses (two year history)
• Names and information of any co-signers or co-borrowers

Income & Employment Information:

• Most recent two years W-2
• Current paycheck stub reflecting a year-to-date income of 30 days or more.
• Present employer’s name, address, and phone number. Length of employment, position, and salary. If employed less than two years, please provide a previous employer’s name, address, and phone number to cover two consecutive years. Exact dates are required.
• Last two months’ bank statements for all accounts. Please provide explanations of any deposits larger than a normal paycheck and please include all pages, even if blank.
• If self-employed or paid any commission or have any business income, please provide complete copies of your federal tax returns along with all schedules and W-2s for the past two years. Include corporate or partnership returns, if applicable, for your business. Also, include a year-to-date Profit & Loss statement.
• Verification of other income needed to qualify, such as retirement, rental, interest, or dividend income. If receiving Social Security or pension income, you will need to provide the current award letters.

Get Pre-Approved

This can speed up your mortgage process exponentially. When you have a pre-approval letter in your hand while house hunting, you are essentially saying “this is how much my lender is willing to lend me right now.” This means that your lender has reviewed your information and has decided that you would be approved based on some initial basic information about your financial status. You can apply for this pre-approval on our website (www.YourLakeLoan.com), and while we are a mortgage company based out of Lake of the Ozarks, we can assist you anywhere across the country with your next mortgage.

Finalize Negotiations Quickly

This will be done with your real estate agent, but it can really slow down the buying process if both parties aren’t communicating quickly. There will be a variety of negotiations that happen between the buyer and seller, and as you get these notifications from your agent, it’s important to respond quickly and not let these things sit around for too long. Properties are selling quickly these days, and it’s important to keep this process moving - there are plenty of other buyers ready to swoop in.

Schedule the Inspections

Your home will require a variety of inspections. If you schedule these well in advance of the closing date, you are giving yourself plenty of time to react to these inspections.

Avoid These Slow Downs

There are a few things you can do that will really slow down the mortgage process. If at all possible refrain from doing any of these things while purchasing a home:

• Changing jobs
• Applying for new credit cards
• Changing bank accounts
• Missing payments or bouncing checks
• Transferring money within your accounts
• Make large deposits
• Co-sign on any new accounts
• Pay off or close debts

Don’t Forget to Stay In Touch

When you are in the process of purchasing a home, one of the most important things you can do is stay in touch with your mortgage lender at Lake of the Ozarks. We want to help you close on this home as quickly as possible, but if there are delays in communication, this can slow things down.

If you are ready to buy a home at Lake of the Ozarks, we are ready to assist! This has been an amazing time to buy and refinance homes - and if you are looking for a good rate, it may be worth it to do it now. You can visit our website to submit an application or learn more about our company, we look forward to working with you, and helping you close as fast as possible!

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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

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 

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

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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 the Mortgage Loan Approval Process

Understanding the different steps in the mortgage loan approval process, and the terms surrounding them, will help you avoid unnecessary stress when buying a home at the Lake of the Ozarks. When your Lake of the Ozarks mortgage lender evaluates your situation for a loan approval, they're assessing your risk. Keep reading to learn how he or she does this.

Pre-Qualification 

A mortgage pre-qualification is an initial evaluation of the credit worthiness of a potential borrower that is used to determine the estimated amount that the person can afford to borrow. During the pre-qualification step, your mortgage lender at the Lake of the Ozarks is looking for an red flags. This step includes a simple review of your debt, income, assets and overall financial situation. At this time, you can discuss your goals and plans, and get a very basic idea of the type of mortgage you might qualify for. This step is often mistaken as being the same thing as a pre-approval, but it's not. 

Pre-Approval 

Getting a pr-approval is the next step, which is much more involved. For a pre-approval, you will need to fill out a mortgage application form. This will include more detailed information about your credit rating, financial background, housing and employment history, current expenses, assets and debts, and other relative information. At this stage in the process, you will need to submit documentation such as W-2's, tax returns, pay stubs, bank statements, proof of retirement accounts, stocks and mutual funds and their balances, and proof of your identity. Your lender will then be able to present you with a specific mortgage amount for which you could be approved and also what interest rate you will qualify for. Once you've been pre-approved, it's time to start house hunting!

Processing

After you've been pre-approved, and you've found a house, you'll fill in the remaining information on the application and then it becomes formal. At this point, the application will go for processing. The processor will examine all the information on your application and look for evidence of anything that may be missing. If there are any issues with the application, the processor will ask you for clarification before proceeding.

Underwriting 

If all the information on your application checks out, it will be sent to the underwriter, who makes the final decision for approval. At this time, the house must be appraised and title insurance must be acquired. Finally, you application reaches the decision maker. The underwriter ensures all the necessary information has been provided and that the loan meets collective guidelines. If the underwriter decides that loaning the money to you is in the best interests of the lender, you will receive a loan commitment letter, allowing you to go ahead and make an offer on the home. 

To get started with a pre-qualification or a pre-approval today, give me a call at 573-746-7211. As your local lender, I'm here to work with you every step of the way. I'll discuss your Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first class service that 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

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.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.

What are Compensating Factors?

For those of you that are just slightly short of qualifying for a Lake of the Ozarks mortgage when it comes to your credit score and/or debt-to-income ratio, keep reading! Today's blog discusses what compensating factors are and how, while they can't "fix" everything, they can be helpful.

Compensating Factors

Compensating factors are essentially factors that compensate for your shortcomings when it comes to applying for a mortgage at the Lake of the Ozarks. For example, if your credit score is a little low or your debt-to-income ratio is a little high, a compensating factor could level it out for you. However, a really awful credit score or out of control debt can't be overcome with these factors. Compensating factors make it possible for those on the borderline of getting approved. Below is a list of a few common compensating factors you may come across; however, each type of loan and each lender will determine what factors are acceptable and how much weight they have.

1. Cash - The more cash you have upfront to use as a down payment on a home, the less risk you pose. Therefore, the more likely you are to get approved for a loan. For example, if you're able to put more down than what's required, you may be able to slide by with a not-so-great credit score. This is dependent upon how bad your credit score is and what caused it to get there.

2. Savings - Not only can your available cash help you, but your savings is another compensating factor. Banks refer to long-term savings as "reserves" and will count these reserves in your favor, especially when they are of a substantial amount. A good example of savings could be your 401k.

3. Credit Score - If you have an excellent credit score, chances are that this will make up for other problems in your profile. As long as you meet the minimum requirements for the loan program, a really high credit score can allow a higher debt-to-income ratio.

4. Debt-to-Income Ratio - Your debt-to-income ratio is one of the best indicators of how likely you are to default on your Lake of the Ozarks home loan. Keep your debt-to-income ratio low and it can become a compensating factor. Therefore, if your debt is reasonable or well below the lowest risk tier, you can still get approved with a slightly unfavorable credit score or a lower down payment.

Obtaining a mortgage is not straightforward; there are a lot of factors that can affect your application and its approval. As your Lake of the Ozarks mortgage lender, I'll help you analyze these factors and help you through every step of the mortgage process, starting with a pre-approval. Give me a call at 573-746-7211 to get started 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.

The 411 on FHA Loans

When it comes time to buy a house at the Lake of the Ozarks, you're going to have several options for financing. First State Bank Mortgage offers a full portfolio of fixed and adjustable-rate mortgage products. One of those options is the FHA Loan, perfect for both new home buyers or those looking to refinance.

What is an FHA Loan? 

An FHA loan is a loan funded by the Federal Housing Administration. FHA loans offer competitively-priced rates and a low downpayment option, making them quite popular among borrowers. Those with FHA loans however, do have to pay for private mortgage insurance to protect the lender from a loss if there's a default on the loan.

FHA Loan Requirements 

The FHA loan requirements set by the Federal Housing Authority include:

• Must have a valid Social Security number, lawful residency in the US, and must be of age to sign for a mortgage in that state. 
• Must pay a minimum downpayment of 3.5%. 
• Must have a minimum credit score of 580 for maximum financing with 3.5% down. On a case by case basis, 500-579 may be approved with 10% down. 
• Must have a steady work history or worked for the same employer for the past 2 years. 
• Must be at least 2 years out of bankruptcy and have re-established good credit. 
• Must be at least 3 years out of a foreclosure and have re-established good credit.  

Benefits of an FHA Loan

When it comes to choosing which loan program is right for you, you need to look at the benefits of each type. Here are the benefits of an FHA loan from your Lake of the Ozarks mortgage lender:

• Flexible credit and underwriting standards 
• Low closing costs
• Fixed and adjustable-rate mortgages available
• Down payments as low as 3.5% of sales price
• Competitive rates on new home purchases and refinances
• In-house processing and underwriting

If you're thinking about a new home purchase at Lake of the Ozarks, give me a call at 573-746-7211 regarding all your financing needs. I can answer all your questions about FHA loans and help you decide if it's the best option for you. As the best mortgage lender at the Lake of the Ozarks, I'm committed to working with you every step of the way! 

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

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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.

What is an Escrow Account?

You've probably heard the word escrow before, but if you're a first-time home buyer, you might not know what it means. Your Lake of the Ozarks mortgage lender is here to help you understand everything there is to know about the mortgage process, including the escrow account. Let's take a look at what an escrow account is and the benefits of having one.

What is Escrow? 

In some situations, a "close of escrow" can refer to the close of a real estate transaction. However, when it comes to mortgages, the word escrow means something different. In our case, escrow refers to the account that is used to pay a homeowner's property taxes and hazard insurance. Each month, you send your lender 1/12 of the annual amount due for your property tax and insurance along with your mortgage payments. This breaks those payments up so you don't have to come up with the entire amount at once. When the bill comes due, your mortgage lender will pay the amount for you.

Benefits of an Escrow Account 

There are many benefits to having an escrow account. In general, it makes everything easier on both the lender and the homeowner. Let's take a look at a few of the benefits:

1. Lower Mortgage Rate - By having an escrow account, it's less likely that your home's tax bill won't get paid and your insurance coverage lapse. The lender doesn't have to worry about a seizure on the property from tax authorities. In addition, they don't have to worry about losses due to property damage because of inadequate coverage. Due to the fact that the lender is able to assume less risk in this situation, you can often get a lower interest rate. 
2. One Less Bill You Pay - Having an escrow account makes your life simpler too. Instead of managing your real estate taxes  and hazard insurance bills on your own, your mortgage lender at Lake of the Ozarks will pay it for you on your behalf. You don't have to worry about keeping track of another bill or paying it on time. 
3. Easier to Budget - Escrow accounts can also make it easier to budget. Instead of making a large payment once a year, you are able to break the payments down into monthly segments. The money is then saved for you until the bill is due. It's a lot easier to create a budget when you have regular monthly payments without sporadic large payments.  
4. No Large Bills - Which is easier: paying a couple thousand dollars at once or splitting that cost up across 12 different months? You might say either way you are paying the same amount. While this is true, I think we could all agree that smaller more manageable payments is a good way to go (unless you're just super good at saving money on your own). If you wait until the end, you might have spent more throughout the other months that you could have saved to put towards your mortgage payments.

In many cases, an escrow account is required with your mortgage loan at the Lake of the Ozarks. Be sure to talk to your lender to determine if an escrow account is a requirement for you. I am here for all of your Lake of the Ozarks home financing needs - feel free to give me a call at 573-746-7211 with any questions you may have.

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.