FAQs About Your Debt to Income Ratio When Buying a Home

When buying a home, several factors can play a role in the type of loan you qualify for, the interest rate you receive, and if you are approved for the loan, to begin with. Debt-to-income ratios are one of the factors that can play a huge role in your Lake of the Ozarks mortgage, so we’re going to cover a few frequently asked questions about them for you.

FAQs About DTI

Q: Why is debt-to-income important?
A: Your lender will use the debt-to-income ratio as a way to measure your ability to manage the payments you make each month, and repay the money you have borrowed.

Q: What sources of income are considered?
A: Typically these are considered:

• Wages
• Salaries
• Commissions & Bonuses
• Pension
• Social Security
• Child Support & Alimony
• Any other additional income

Q: What monthly payments are included in the debt-to-income ratio?
A:

• Mortgage payments
• Real estate taxes
• Home owner’s insurance
• Home Owner Association Dues
• Student loan payments
• Minimum monthly credit card payments
• Timeshare payments
• Loan payments
• Child support payment
• Alimony payment
• Any co-signed loan payments

Q: What payment is used for my credit card debts, the minimum payment required or what I actually pay monthly?
A: Typically, your lender will use the minimum monthly payment that is reported on your credit report.

Q: What is considered a good debt-to-income ratio?
A: Each lender is going to consider a different ratio based on the size, purpose, and type of loan that you are applying for. As a general rule, most lenders like to see a DTI below 45%.

Q: What is the formula for calculating my debt-to-income ratio?
A: It is calculated by dividing your total recurring monthly debt by your gross monthly income.

Q: How does my debt-to-income ratio affect my ability to get a loan?
A: Lenders will calculate your DTI to ensure you can afford to take on an additional payment. A low debt-to-income ratio reflects a good balance between your income and debt.

Are You Ready to Buy a Home?

As we move out of the summer season and into the fall season, we can’t affirm enough what a wonderful time it is to buy a home at the Lake of the Ozarks. If you have been dreaming about buying a home, it’s time to apply. Interest rates are statistically lower than they have been, and Team Lasson is ready to assist. Visit our website to submit your application and get started!

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.

Ways to Enjoy the Great Outdoors at the Lake of the Ozarks - Part 1

June is Great Outdoors Month, and there’s no greater place to enjoy it than the Lake of the Ozarks. With many different types of scenery and activities, a vacation at the Lake of the Ozarks would not be complete without some outdoor activities. Whether you enjoy several trips to the Lake Area or are only visiting occasionally, here are a few things you MUST add to your list to enjoy this month.

By Land

The big hitter is obviously the Lake, but enjoying the great outdoors by land is also a fantastic way to see a different aspect of our area. There are so many great ways to enjoy the land surrounding the Lake of the Ozarks, so here are a few popular ones, as well as a few that may not come to mind.

Cycling

Did you know that the Lake Area offers a variety of riding for cyclists? There is something for everyone, including road cyclists, mountain bikers, and recreational riders - but all must bring their own bikes. The Lake of the Ozarks State Park offers a 16-mile single track trail for mountain bikers, while casual riders and can enjoy up to 9 miles of paved multi-use trail starting at the Village of Four Seasons.

Hiking

There are over 32 hiking trails at the Lake of the Ozarks, for varying skill and interest levels. There are 12 trails at Ha Ha Tonka State Park, 11 trails at the Lake of the Ozarks State Park, as well as other locations and businesses with private trails for customers and clients. These trails are beautiful in all seasons and worth checking out.

Hunting

Did you know that many people come to the Lake for hunting? The most popular species to hunt in this area are deer and turkey, and they thrive because of both the wooded areas and farmlands. There are some hunting preserves around the area, but the other two popular options are to makes friends with someone who owns private land or find a landowner that offers a land-lease package for hunting.

Bird Watching

Watching the birds can be a relaxing and educational way to enjoy the outdoors. It also requires very little equipment and can be done from just about anywhere. The Lake of the Ozarks is a natural water environment that is a feeding and resting ground for many species of wildlife, including a wide variety of birds. A few to keep your eyes peeled for are the great blue heron, hawks, ducks, wild turkey, pectoral sandpipers, cliff swallows, terns, American goldfinches, ruby-throated hummingbirds, robins, bobwhites, whippoorwills, cardinals, blue jays, wood thrushes, eastern meadowlarks, phoebes, belted kingfishers, pileated woodpeckers, and the turkey vulture.

Caves

Missouri is known as the cave state, so it shouldn’t surprise you when we say that there are four beautiful show caves at the Lake of the Ozarks. Of course, there are wild caves as well, 300 wild caves to be exact! The difference between wild and show caves is that show caves have been “tamed” and are easier to walk through and enjoy.

Our four beautiful caves that you can visit are Bridal Cave, Jacob’s Cave, Stark Caverns, and Ozark Caverns. If you need more information about these locations, FunLake.com provides great information.

Golf

If you want to hit the greens while you’re at the Lake of the Ozarks, there are plenty of amazing courses for you to try. The Lake of the Ozarks is actually the Midwest’s premier golf destination, because there’s nothing quite like playing on a course designed by Arnold Palmer, Tom Weiskopf, Fred Farley, Ken Kavanaugh, Robert Trent Jones Sr., Jack Nicklaus, or Von Hagge/Devlin. With the many different courses, you will be able to enjoy the great outdoors and also improve your golf game.

It’s Time to Get Outside!

Don’t worry, we haven’t forgotten about the amazing Lake activities - we’ll be featuring those in another blog this month! When you come to the Lake of the Ozarks, if you find yourself spending most of your time on the water, take a look at this list and pick a few items to enjoy by land. The Great Outdoors Month is the perfect chance to get outside, even at your own vacation home at the Lake of the Ozarks. Don’t have a vacation home yet? Team Lasson is ready to assist with all of your mortgages at the Lake of the Ozarks. We specialize in both second homes, primary residences, and more. Visit our website to learn more about our mortgage services at the Lake of the Ozarks, or to fill out your application to get started. We look forward to assisting you one of the most fun adventures you can enjoy! Stay tuned for part #2 - we’ll share some great ways to enjoy the water.

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.

The Home Loan Process in a Nutshell

While the home financing process can seem overwhelming, it's your mortgage lender's job to ensure you get a home loan at the Lake of the Ozarks as quickly and easily as possible. As your Lake of the Ozarks mortgage lender, I'll provide you with regular updates. Anytime you need assistance, I'm just a phone call away - I'll be with you every step of the way! Let's take a look at what you can expect during the home loan process:

STEP 1: Pre-Approval

To get started, just give us a call at 573-746-7211. By providing us with some general financial information, we can determine how much you will be able to borrow. During the pre-approval process, we will also review your credit report and evaluate your debt-to-income ratio. By getting a pre-approval before you start your home search, you may have more buying power and the ability to negotiate the purchase price.

STEP 2: Application 

Once you have selected a property and have a contract with the seller, it's time to put in your loan application. This can easily be done on the First State Bank Mortgage website or just give your mortgage lender at the Lake of the Ozarks a call for assistance in filling out the application. At this time, you will need to have all your documents in order and send them in along with your application. These documents can include: pay stubs & W2's, tax returns, investment & retirement income documentation, bank statments, purchase agreement, etc.

STEP 3: Processing 

During this step, the mortgage lender will review the documentation and provide a loan package for the underwriter. At the appropriate time, we will order an appraisal for you. Keep in mind that applying for a mortgage is an ongoing process that takes into account everything you do up until the day of closing. It is very important that during this processing time, you don't make any big changes such as: incurring new debts like getting a new car or a new credit card, or making any lifestyle changes that could hinder your loan approval. Ask your mortgage lender for recommendations to ensure a quick and smooth loan closing process.

STEP 4: Loan Approval 

Now, the underwriter determines whether the information provided is acceptable to offer the applicant the loan. The underwriter will evaluate your credit, assets, debts and the property appraisal. If more information is needed, you will be contacted to supply it.

STEP 5: Funding 

Your real estate agent or the seller will designate an escrow/title company to handle the funding of your loan. This company will also handle all the other factors that make your purchase go smoothly. For example, they will check the title to make sure it is free of liens associated with any previous owners. During this step, a closing date is scheduled.

STEP 6: Closing 

The loan closing is a meeting where you will complete the paperwork to finalize the purchase of the home from the seller. You'll sign the mortgage documents and receive the deed and keys to your new home!

That is our loan process - Simple, Straightforward, Cost-Effective, and FAST! For more information on getting a mortgage loan at the Lake of the Ozarks, give Lakelender Lasson a call at 573-746-7211. When it comes to your financing needs, I'll discuss options, offer competitive 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

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.