1. Can I Buy a Home When My Credit is Less Than Desirable?
Different loan products have different requirements in regard to credit score. Some loans allow a lower credit score than others. The down side is that the lower your credit score, the higher your interest rate is likely to be. However, if your credit score falls below 600, you could have a difficult time getting approved for a mortgage at all.
2. How Much Money Do I Need for a Down Payment?
The amount of money you need for a down payment on a house also depends on the type of loan you choose. Traditionally, people would need to put down 20% of the total cost of the home. Today, there are loan programs that allow for as little as 3-5% down. Keep in mind that the more you can put down, the more equity you will have in your home from the get go.
3. What Documents Will I Need to Apply for a Mortgage?
When applying for a home loan at the Lake of the Ozarks, you'll need to provide a variety of documents that prove your identity and show your income, assets, and debts. This includes driver's license, prior year's W-2, current pay stub, past tax returns, financial statements showing assets and liabilities. Talk to your lender about additional documentation that may be unique to your situation.
4. What is Private Mortgage Insurance?
Private Mortgage Insurance, or PMI, is a type of insurance that protects lenders against loss if a borrower defaults. This insurance is generally required for any loan that has less than a 20% down payment.
5. What is an Escrow Account and How Does It Work?
An Escrow Account is a separate account that hold funds for the purpose of paying bills such as homeowner's insurance and property taxes. Along with your monthly mortgage payment, you will send a portion of money to be deposited into this account. Then when the bills become due, you have all the money there ready to go. It is a way to disperse these added costs of homeownership over 12 months.
6. What are Points?
Points are fees that can be paid to the lender upfront in exchange for a discount. Most commonly the discount is in the form of a lower interest rate on your loan. One point is equal to one percent of the loan amount.
7. What is APR?
APR stands for Annual Percentage Rate, and is often confused with the interest rate on your loan. The interest rate is the cost of borrowing the principal loan amount. The APR however, is a broader measure of the cost of your mortgage because it takes into consideration not only the interest rate, but also other costs such as broker fees, discount points and some closing costs.
For all your other mortgage questions, give your Lake of the Ozarks mortgage lender a call at 573-746-7211. When you're ready to buy a home, I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve. When it comes to your Lake of the Ozarks home financing needs, I'm here to help you every step of the way, from your initial questions to the closing ones.
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.
