How to Obtain a Mortgage Pre-Approval

One of the very first steps in the home buying process is obtaining a mortgage pre-approval. Essentially, a pre-approval is a promise from the lender that you're qualified to borrow a certain amount of money at a specific interest rate, subject to a property appraisal and other requirements. Keep reading for some tips and information about getting a mortgage pre-approval at the Lake of the Ozarks.

Information Required for a Pre-Approval 

In order to get a mortgage pre-approval, you will need to submit some personal and financial information to your Lake of the Ozarks mortgage lender. This can include:

Identification Documentation
You'll need to provide personal information such as social security number, driver's license, current address, etc. There's a lot of paperwork involved in obtaining a mortgage pre-approval, so be prepared to fill everything out thoroughly and quickly to get through the process smoothly.

Proof of Income & Assets
In order to determine how much you qualify for in a home loan, your lender is going to need proof of how much money you make. Borrowers will need to show W-2 statements from the past 2 years, recent pay stubs, proof of any additional income and the two most recent years' tax returns (personal and business, if applicable).

Acceptable Credit Score
The better your credit, the better the interest rates you'll qualify for. Too low of a score could cause you to be denied for a mortgage. If your credit score is less than desirable, your lender will typically work with you to find ways that you can improve your score and better your chances at a mortgage approval down the road.

Employment Verification
Not only will your lender want to see recent pay stubs, but they will call your employer to check on your employment status and your salary. If you have recently changed jobs, your lender may want to talk with your previous employer. During the mortgage process, it's important that you don't change jobs. Any changes in employment and/or salary, could delay or even deny your approval. Self-employed borrowers will need to provide additional paperwork concerning their business and income.

Once you've provided all this information, your lender will evaluate your situation and determine what loan options, loan amount and interest rate you can qualify for. They will present this information to you in a pre-approval letter that is typically good for 60-90 days. Then you're ready to start house hunting!

Tips for Getting Pre-Approved

Not everyone can get approved for a mortgage. However, there are some things you can do to better your chances.

1. Gather Your Documents Early. 
Before making an appointment with your lender, be sure to gather up all the necessary documentation. Having all this information together and handy can speed up the process. If your lender asks you for any additional documentation, the sooner you can get it to them, the quicker the process of obtaining your mortgage pre-approval.

2. Improve Your Credit Score. 
Your credit score plays a big role in your mortgage pre-approval. If you're planning to apply for a home loan in the near future, it's a good idea to start taking a look at your credit now. Many people don't even know what their credit score is. Once you know your score, you can improve it by making sure to pay your debts on time, not opening any new credit accounts and scanning your report for any errors that may be on it.

3. Lower Your Debt-to-Income Ratio. 
Your debt-to-income ratio also plays an important part in a mortgage pre-approval. As a general guideline, you want your debt-to-income ratio to be 36% or less. Decrease your overall debt to improve your debt-to-income ratio.

4. Increase Your Down Payment. 
The amount of cash you have available for a down payment also comes into play when getting a mortgage pre-approval. Having a larger down payment can sometimes make up for less than desirable credit scores or other issues that could prevent you from obtaining a home loan.

Getting a mortgage pre-approval shows sellers and real estate agents that you are a serious buyer. Sellers have the confidence that you will be approved for a home loan at the Lake of the Ozarks after they accept your offer. If you have any questions about obtaining a mortgage pre-approval, please don't hesitate to reach out. If you're ready to get started on your mortgage pre-approval today, give me a call at 573-746-7211. As your mortgage professional at the Lake of the Ozarks, 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.

When Should You Talk to a Mortgage Professional?

The excitement of purchasing a home at the Lake of the Ozarks can easily get in the way of how you proceed with the process. Most people start house hunting before they even think about how they are going to fund their investment. When you make the decision to buy a home, the first thing you should do is talk to a Lake of the Ozarks mortgage lender. Keep reading to find out why.

BEFORE You Start House Hunting 

Why should a mortgage professional be the first person you talk to during the home buying process? Not only can you get a realistic picture of what type of Lake of the Ozarks home financing is available to you, but it makes you more attractive to sellers and real estate agents alike. Having a mortgage pre-approval sets you apart from the rest of the buyers in the market. If you're serious about getting into the home of your dreams, finding a mortgage lender is the place to start!

Setting Realistic Expectations 

There's nothing more disappointing than finding the home of your dreams, and then realizing it's just outside of your financial reach. By talking with a mortgage lender, you can get a realistic idea of how much you will qualify for in a home loan at the Lake of the Ozarks, and then you can determine how much you feel comfortable paying in a monthly mortgage payment. You'll get an idea of the price range of homes you should be looking at, and then you can weed out the ones that don't fit in that price bracket when you do start house hunting. Remember that you're going to have more than just the price tag of that home wrapped up into your monthly mortgage payments. You need to consider taxes, homeowners insurance and possibly private mortgage insurance if you don't have 20% to put down.

Having a Competitive Edge 

Whether you're talking with a real estate agent or a potential seller, coming to the table with a mortgage pre-approval shows you're serious about buying a home. You want to present yourself as a hassle-free buyer, not someone who's just shopping. Real estate agents have more of a desire to work with those buyers that are serious. Having a pre-approval can also make you more appealing to sellers because they know you're ready to sign a check. If multiple offers come in, your pre-approval could set you apart from the rest of the buyers in the pool.

Getting a Jump Start on Paperwork 

Purchasing a home involves a lot of paperwork, especially when it comes to the financing. By getting a pre-approval, you have a big chunk of the paperwork done before you even find your home. You will have already provided all the necessary documents to get your mortgage approval completed, and that can greatly decrease the amount of time it takes to close on the home once you do find that perfect place. This also reduces the likelihood of the seller pulling out due to mortgage complications.

If you're considering a home purchase in the near future, now's the time to contact a mortgage professional at the Lake of the Ozarks. I'm here to work with you every step of the way, from the pre-approval, to the closing and beyond. I'll discuss your financing options, offer competitive interest rates and back it up with the first-class service you deserve. 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

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 Private Mortgage Insurance

If you're in the market to buy a new home at the Lake of the Ozarks, you've likely heard of private mortgage insurance or PMI. Many prospective homeowners, however, don't necessarily understand what it is or how it works. Today's blog from your Lake of the Ozarks mortgage lender dives into private mortgage insurance to get your questions answered.

What is Private Mortgage Insurance? 

Private Mortgage Insurance, or PMI, is an insurance that protects the lender if the borrower stops making payments on their loan. It ensures the lender doesn't lose money if the borrower's house ends up in foreclosure. On the buyer's side, it's beneficial because it allows you to purchase a home sooner, without having to wait to save up a hefty down payment. It's important to understand that this insurance does not protect the borrower in the event that you run into problems paying your mortgage. PMI rates can vary from person to person and are varied depending on different factors, including, but not limited to debt-to-income ratio, credit score and loan-to-value amounts.

How Does PMI Work? 

If you purchase a home with less than a 20% down payment, PMI will likely be required by your mortgage professional at the Lake of the Ozarks. The PMI premium payment is included in your monthly mortgage payment, in addition to your principal, interest, property tax, and homeowners insurance. In most cases, you can cancel your PMI insurance policy once you have built up enough equity in your home. Be sure to contact your lender once you've reached that point to discuss removing the premiums from your monthly payment.

As your local mortgage professional, I'm here for all your Lake of the Ozarks home financing needs. I'll discuss your options, address your concerns, offer competitive rates and back it up with the first-class service you deserve. Whether you're in the market for your first home, a new home or to refinance your home at the Lake of the Ozarks, I'm here to help! Give me a call at 573-746-7211.

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.

Buying a Home Without a Bunch of Cash

Traditionally, when buying a home, you needed to have 20% of the home purchase price saved up for a down payment. While it's still great to have that much down, as you start off with a good chunk of equity in your home, it's not completely necessary anymore. Today, there are programs available that require just 3-5% down. Today's blog from your favorite Lake of the Ozarks mortgage lender discusses buying a home without a bunch of cash.

How to Receive a Gift 

One way to get a small chunk of money to build equity in your home upfront is to get it from a family member. When receiving money from someone else, it's important that you provide documentation of where the money is coming from. You have to show that it's a gift and not a loan that you're required to pay back. Make sure you don't just deposit a large sum of money into your account without any documentation of where it came from and why you got it. This will look suspicious to the lender and could cause your mortgage application to get delayed or not approved at all.

Asking the Seller for Help 

Sellers can help with the closing costs in order to make the deal go through. The cash required to close on a home can be 2-5% of the home's purchase price. Your mortgage professional will provide you with an estimate of what is needed to close on the home. Your local real estate agent will then be able to help you negotiate with the seller. Depending on how motivated the seller is, they'll likely be willing to work with you. You'll never know if you don't ask. In some cases, you can walk away from the closing without having to pay anything out of pocket.

Building Your Personal Reserve 

While you may not be required to have a bunch of cash upfront for a down payment or closing costs, it's still important to have some money in reserves. When buying a home, you take on a lot of responsibility that renting doesn't require. You will now be responsible for the upkeep and repairs of your home. If something breaks, instead of calling the landlord to take care of it, you have to pay someone to fix it or in some cases to replace it. The more you have in savings for the unexpected expenses of owning a home, the better off you'll be - and the better your financial picture looks in the eyes of the lender. Your mortgage lender at the Lake of the Ozarks will want to know that if any emergency situation does come up, you'll still be able to make your monthly mortgage payment.

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

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.

How Your Debt Affects Your Mortgage

When you're looking into financing a home at the Lake of the Ozarks, you've got several different factors that have to be reviewed. You've surely heard that your credit score can impact your chances at getting approved for a mortgage, but that number alone is not the only thing a Lake of the Ozarks mortgage lender will check. Keep reading to learn how your debt, and more specifically your debt-to-income ratio, can affect your mortgage.

Debt-to-Income Ratio 

To figure out your debt-to-income ratio, add up all your monthly payments including credit cards, personal loans and/or a current mortgage loan. Then divide that number by your gross monthly income. That number is your debt-to-income ratio. That ratio helps the lender determine if you can afford another debt payment each month, and if so, how much of a monthly payment. An ideal debt-to-income ratio would be 25% or less. If your debt-to-income ratio rises above 43%, you may have a difficult time qualifying for a mortgage at the Lake of the Ozarks.

Types of Debt: Secured vs. Unsecured

While different types of debt can actually boost your credit score, and show that you are reliable in paying those debts back, over borrowing can hurt your chances at qualifying for a mortgage. First of all, there are two main types of debt: secured and unsecured. A debt that is secured means the debt is balanced against something that could get taken away, such as a house or a vehicle. Unsecured debt is the other stuff like credit card debt and student loans.

Unsecured Debt

While credit card debt does not look good, especially if your credit utilization is high, student loans aren't necessarily bad if you've paid your bills on time. Student loans can actually help raise your score. Other loans, like personal loans or credit card debt, even when paid on time, can actually lower your score. Although student loans can have a positive effect on your credit score, they're still added into your debt-to-income ratio, so large loan balances can make it difficult to qualify for a mortgage.

Secured Debt 

Auto loans are a secured debt because the lender can repossess the car if you don't pay your bill. In some cases, auto loans can raise your credit score by diversifying the type of debts you have. Also, due to the fact that auto loans are harder to obtain than credit cards, some lenders may view auto loan debt favorably. Mortgage payments also look good on your credit report, as long as they've been paid on time. If you were ever late on a payment, that looks like a risk to your new lender.

If you're concerned with how your debt will affect your chances of obtaining a home loan at the Lake of the Ozarks, give me a call at 573-746-7211. I'll discuss your questions and concerns, go over your financing options, offer competitive interest rates and back it up with the first-class service you deserve. Together, we'll work towards getting you into that dream home of yours!

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.

Understanding Closing Costs

The final step in purchasing a home at the Lake of the Ozarks is the closing. During this process, you will meet with everyone involved in the transaction, sign all the papers and receive the keys to your new home. Along with this process, comes some fees, known as closing costs. Keep reading to learn more about closing costs from your Lake of the Ozarks mortgage lender.

Understanding Closing Costs

Many home buyers don't realize how much money they will need to contribute upfront when purchasing a home. As you work with a mortgage professional at the Lake of the Ozarks to determine a budget for your home purchase, you'll want to make sure to consider closing costs. When shopping for homes, you'll want to mentally add in several thousand dollars to cover those costs and help you determine if that property is affordable for you. Generally, your closing costs will be anywhere from 3-5% of the loan amount.

What are Closing Costs? 

There are a lot of applicable fees that go into the "closing costs." Below is a breakdown of what the closing costs typically include:

• Loan Origination Fees - charged by the lender to pay for the evaluation & preparation of your home loan at the Lake of the Ozarks. 
• Discount Points - prepaid finance charges to "pay down" the interest rate, if you plan to stay in your home at least 5 years, these points will benefit you buy saving money on interest in the long-run. 
• Credit Report Check - covers the fee for pulling your credit. 
• Inspection Fees - covers the cost to have the home inspected.

• Appraisal Fees - covers the home appraisal, which determines the market value of the home. 
• Homeowner's Insurance - home insurance is usually mandatory and has to be in place prior to the closing. 
• Private Mortgage Insurance - depending on how much of down payment you provide, you may be required to purchase PMI. The premiums are usually setup to be paid annually through an escrow account or can be paid in full at closing. 
• Attorney Fees - sometimes a buyer will want an attorney to represent them, and those fees are typically based on the cost of the home and how complicated the sale becomes. 
• Taxes - in most states, the buyer will be required to provide 4-8 months of taxes at the time of closing, and that money will go into an escrow account. 
• Daily Rate of Interest - this fee covers the loan interest from the closing date through the end of the first month and is paid to your lender. 
• Document Preparation & Title Fees - these are paid to the title company, and include the title search and title insurance. A recording fee is also charged by the title company to cover the cost of recording the transfer of the title at the county clerk's office. 
• Survey Costs - covers the cost of a survey on the property, which makes certain that there are no new structures added to the property since the last survey and that the property meets legal codes. 

As you can see, there are a lot of processes that go into the purchase of a home and 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 the 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 

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.

How Credit Utilization Can Affect Your Mortgage Loan Approval

While you may know that your credit can affect your ability to be approved for a home loan at the Lake of the Ozarks, what do you know about how your credit score is determined? Your credit score is influenced by 5 different factors: payment history, level of debt/credit utilization, age of credit, mix of credit and credit inquiries. Credit utilization is the 2nd largest factor in determining your credit score. Today's blog from your Lake of the Ozarks mortgage lender discusses what credit utilization is and how you can manage it to get the best credit score.

What is Credit Utilization? 

Credit utilization measures the amount of your credit limit that is being used. It is the ratio of your credit card balances to the credit limits. For any easy example, let's say you have a credit limit of $1,000 on your credit card and you have bought $200 worth of stuff on it. Your credit utilization would currently be 20 percent. The lower your credit utilization percentage is, the better the effect it will have on your overall credit score. The FICO credit score model looks at your credit utilization in two ways; it looks at each card's utilization separately, and then it looks at your total credit utilization. A high percentage for either of those will have a negative effect on your credit score. Remember that the purpose of your credit score is to show your mortgage lender at the Lake of the Ozarks how likely you are to repay the money you borrow. High credit card and loan balances make you appear more likely to default on your mortgage loan payments.

Managing Your Credit Utilization 

The best way to manage your credit utilization is by keeping a low credit card balance. Keeping your credit utilization below 30 percent is ideal. One way to do this is to make your payments early, before the billing cycle ends and the payment is due. Just paying your bills in full each month isn't going to work, because the credit card companies send your information to the credit reporting agencies at the end of each billing cycle (which is before you get your bill and likely before you make any payments). The good thing is that high credit utilization won't hurt your credit score in the long run. As soon as you're able to pay down your balances, your credit utilization will decrease and your score will go up.

If you're concerned with your credit utilization and how it will affect your chances at getting approved for a mortgage, contact your local lake lender at 573-746-7211 to discuss your unique situation. Together, we can go over your options and see what needs to happen in order for you to be approved for a mortgage loan at the Lake of the Ozarks. I'm here to help you every step of the way, and get you into your dream home at the Lake!

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 Difference Between Interest Rate and APR

When financing a home at the Lake of the Ozarks, it's important that you look at more than just the interest rate. There are other factors to consider when looking for the best value in a loan. In today's blog, your Lake of the Ozarks mortgage lender discusses the difference between interest rate and annual percentage rate (APR).

Interest Rate

Your mortgage interest rate is the cost of borrowing the principle loan amount. The rate can be variable or fixed, but it is always expressed as a percentage. This number does not include any of the extra fees associated with a home purchase.

Annual Percentage Rate (APR)

Annual Percentage Rate, or APR, is a broader measure of the cost of borrowing money. Not only does the APR reflect the interest rate, but it also includes mortgage points, mortgage broker fees and other loan fees. Due to these additional factors, your APR is typically higher than your interest rate.

The Difference

The main difference between interest rate and APR is that the interest rate reflects what your actual monthly payment will be. The APR reflects the total cost of the loan over the life of the loan. A consumer can use one or both when comparison shopping for a home loan at the Lake of the Ozarks. If a home buyer is solely focused on the lowest monthly payment possible, then the interest rate should be the focus. However, if the borrower is focused on the total cost of the loan over time, then the APR should be used as the comparison tool. Consider the amount of time you plan to spend in your home to determine which measure to use. If you plan to stay in your house for the 30 years or close to it, then it would make sense to go with a loan with the lowest APR. However, if you only plan to be in your home for a few years, it might be smart to go with lower upfront fees and a higher APR because the costs will be less over the first few years. Do the math and figure out what your break-even point would be.

Making the calculations and determining what's right for your situation can be challenging. That's why it's so important that you find the right mortgage lender at the Lake of the Ozarks. Call 573-746-7211 to start the mortgage process today. I'll explain your different options and help you understand how they meet your individual needs. Before you know it, we'll have you in the home of your dreams!  

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.