Home Buying Tips for First Time Buyers

Buying a home for the first time is a big step! Like many life changes, it can seem intimidating to purchase a home. As an experienced mortgage lender in Osage Beach, MO, we've assisted many first time home buyers at the Lake of the Ozarks. If you're thinking about getting a home loan at the Lake of the Ozarks, check out these helpful tips to get started on the right foot!

Save for a Down Payment

Before buying a home, it's important to set some money aside for a down payment. Most loans require some sort of upfront payment to show you are committed to purchasing the home. As a first time home buyer, there are some options that don't require a down payment. It all depends on your unique situation and our lender will be able to best advise you on the loan type that will fit your wants and needs. 

Get Pre-Approved

A pre-approval is a huge step in buying a home. This is where you present all of your statements and financial information to a lender to see what the loan company will lend you for a home. A letter of pre-approval is a great bargaining tool when it comes to making an offer on a home, as well. It shows that you've already taken the steps to make sure you have the financing available, and the home seller may be more likely to go with your offer based on your pre-approval status. 

Stick To Your Budget

It can be very tempting to look at a home that is outside your budget, especially in the current real estate market. Just don't do it! You'll likely fall in love with the home that is too expensive and then you'll always be comparing the homes in your price range to that property. At the end of the day, it's important to have a monthly payment you are comfortable with rather than to be pinching pennies for the next 30 years!

Avoid Major Purchases

A big purchase can temporarily ding your credit. Once you've been pre-approved, avoid major purchases. Push off buying that car, appliances for your new home, or other significant purchase until after you've closed on the home. If you do have a major purchase in your very near future, let your lender know this information upfront so they can be aware of potential changes and advise you on the best next steps through the home purchasing process!

It's best to be prepared for everything that may be thrown your way during the home buying process. As a first time home buyer, it's nearly impossible to know every possible situation that may arise. That's where our Lake of the Ozarks mortgage lender comes into play! We have a great deal of experience helping home buyers in the area. If you're ready to get started on your home buying journey, contact Team Lasson today! Call (573) 746-7211 or visit our website at www.yourlakeloan.com for more information.

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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.

 

Expert Advice for First-time Home Buyers

When it comes to buying your first home at Lake of the Ozarks, you likely won't be in a position to do it with cash this time around. Therefore, you're going to need to secure a mortgage loan in order to make that first home purchase. Obtaining your first mortgage is exciting, but it can also come with its fair share of challenges if you're not prepared. As such, the best mortgage lender at Lake of the Ozarks, Team Lasson is here with a little expert advice to help set you up for success.

Manage Debts Diligently

Efficiently handling your debts by making continued payments over the years or paying down a lump sum of debt can help keep your debt-to-income ratio low. Your lender will be looking at this ratio during the mortgage qualification process to determine qualifying ability. Ensuring you're handling debts such as student loans, car payments, credit cards, etc., will help you maintain a lower debt-to-income ratio.

Practice Good Credit Habits

Your credit score is a large determining factor in your mortgage qualification process. When you miss payments on debt obligations that you owe, you're negatively impacting your credit score. A good practice for maintaining good credit is to create a ledger for monthly debt obligations and ensure that they are met each month. This will allow you to qualify for better mortgage loan programs and rates.

Consider Refinancing/Consolidating Student Loans

One loan that may be near impossible to pay off before you're ready to purchase your first home comes from student loans. These large balances and payments combined with the commonly lower income of first-time homebuyers/fresh college graduates make it difficult to manage in a short amount of time. Refinancing or consolidating your student loans can be an effective way to reduce the payment amount, thus lowering your debt-to-income ratio. However, you'll have to decide whether you want to extend the length of time you're paying those debts vs. securing a mortgage loan.

Keep Good Records

There is a lot of documentation required during the mortgage loan process. So, keeping solid records of your financials such as tax returns, bank statements, brokerage accounts can help give you an advantage when it comes to document collection. You'll also find the documents useful when you're first meeting with your mortgage lender - and they'll be thankful you have them upfront too!

Save Cash for Upfront Costs

While there are loan options to finance a vast majority of a home purchase, you will still be liable to cover closing costs and applicable down payment at the closing table to finalize your mortgage loan. Closing costs can include but are not limited to, appraisals, home inspections, surveys, county/state transfer taxes, property taxes, and even homeowner's insurance premiums. So, while you're making that expense ledger for your debt obligations, be sure to allocate a little money aside to help save for these costs.

As a first-time homebuyer, you'll likely have many questions about the mortgage process. As your premier mortgage lender at Lake of the Ozarks, Team Lasson is here to assist you with your home financing needs. We will work with you every step of the way to get you the best financing options to suit your home buying need. So, if you're considering buying your first home at Lake of the Ozarks, we would be happy to provide you the first-class service you deserve!

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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.

7 Best Practices for First-Time Home Buyers

For most first-time home buyers, purchasing a home with cash isn't an option. Therefore, you're going to need to secure a mortgage loan. In order to make that process smooth and simple, the best mortgage lender at the Lake of the Ozarks has put together a list of best practices for you to keep in mind:

1. Pay Off as Much Debt as You Can.

By paying off as much debt as you can before applying for a mortgage, you'll be able to keep your debt-to-income ratio low. Lenders will look at your income in comparison to everything you owe, like student loans, car payments, credit card debt, etc, to determine how much you can afford to borrow.  

2. Develop Good Credit Habits.  

Your credit score is a huge determining factor when it comes to getting a great mortgage loan at the Lake of the Ozarks. Missing payments on student loans or habitually paying your bills late will negatively affect your credit score. In turn, that can make securing a home loan more expensive or even impossible.

3. Consider Consolidating or Refinancing Student Loans. 

Sometimes paying off your debt, such as student loans, is nearly impossible to do before you're ready to purchase your first home. If you can't pay them off, look into getting the payment lowered. You'll have to make the decision on whether or not spreading out your loan payments over a longer period of time is worth it to get a home sooner.

4. Keep a Solid Work History. 

Your work history is a good indicator of how your income will be. If you can't hold a job for more than a few months, a lender is going to have a difficult time loaning you money. Your Lake of the Ozarks mortgage lender needs to know that you are going to continue to have a large enough income to cover the monthly mortgage payments. While you can't change the past, make sure to keep your current job until after you have closed on your new home.

5. Document Everything. 

Throughout the mortgage process, you're going to be required to document everything. Get in the habit now of keeping track of tax returns, bank statements, brokerage statements and any other documents that verify the source of all your money. You'll also be required to verify your employment and income, once at the beginning of the process and again just before the closing. 

6. Don't Apply For New Credit. 

One of the worst things you can do to jeopardize your mortgage approval is to apply for new credit. It can be tempting to purchase new furniture for your new home on your credit card. Or maybe you think you'll have enough cash left over for a down payment on a new car. Once the mortgage process is underway, refrain from financing any new purchases until after your mortgage is complete.

7. Save Cash for Upfront Costs. 

While you're getting a loan for the cost of the house itself, you're going to need some cash to cover other expenses that come with purchasing a home. In addition to your closing costs, you're going to need to pay for a home inspection, an appraisal, a survey and city, county or state transfer taxes. Most lenders will also ask for at least a year's worth of homeowners insurance and property taxes upfront.

As a first-time home buyer, you probably have a lot of questions and I'm here to help! 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 

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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.