1. Improve Your Credit Score.
Your credit score is one of the most important factors when it comes to being approved for a mortgage at the Lake of the Ozarks. The better your credit score, not only the better your chances of approval, but the better rate you'll be offered as well. If your credit score is under 620, you're likely to not be approved. Take steps to improve your credit by paying down debt, paying bills on time, and cleaning up any discrepancies on your credit report.
2. Decide on a Budget.
Before starting your home shopping, you want to come up with a budget. You want to make sure you know what price range you can afford, and only look at homes in that price range. A good rule of thumb is, if you have a 20% down payment and a moderate amount of debt, keep your price range at no more than 3 to 5 times your annual household income.
3. Get a Pre-Approval.
Getting pre-approved for a mortgage goes hand in hand with creating a budget. By getting a pre-approval, you will know exactly how much you can borrow for a home. With that being said, you don't necessarily want to buy a house for the maximum amount you're approved for. You want to make sure you're personally comfortable with the monthly payment you would be making. In addition to budget, a pre-approval helps you in the buying process because it shows sellers you're serious about making a purchase.
4. Organize Your Papers.
Documentation is a huge component of applying for a home loan at the Lake of the Ozarks. Be prepared to show your pay stubs, tax returns, bank statements, etc. Your lender will need to see these documents for proof of income, assets, expenses and debts. You will also need basic documents like your driver's license and social security number to prove your identity.
5. Decide on a Loan Type.
With a variety of different loan options available, it can be difficult knowing where to start. Your Lake of the Ozarks mortgage lender will be able to discuss your options with you and help you determine what loan type works best for you and your unique situation. Considerations when determining what type of loan to get include how much you have for a down payment, what your credit score and debt to income ratios look like, etc.
6. Shop for a Home.
After you've finished all the preliminary work, knowing you're pre-approved and how much you can afford, it's time to start looking for your dream home. Take as much time as you need to find the right home; don't rush into a purchase this large. Once you've selected your desired home, work with a buyer's agent to help you negotiate a fair offer.
7. Don't Make Last Minute Mistakes.
Throughout the home loan process, you'll want to avoid doing anything that could hurt your chances of getting that mortgage. This includes changes in your credit report by making large purchases or opening new credit accounts, and quitting or changing your job to reflect new income numbers. Your lender will check all these things one more time before the closing.8. Close the Sale.
Once you've found your dream home and the sellers have accepted your offer, you schedule the closing date. At this time, you will sign all the documents required for the transfer of ownership of the home and the documents required for the loan. At this time you'll get the keys and will be ready to start moving into your new home!
If you're ready to start the home buying process, talk to a mortgage professional at the Lake of the Ozarks today! Call 573-746-7211 with any questions you may have about the mortgage process and purchasing a home at the lake. As your lender, I'll work 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
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.
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