Steps to Prepare for a Home Purchase

The process of preparing to buy a home at the Lake of the Ozarks can be daunting. From coming up with a down payment to filling out all the paperwork, you've got a lot on your mind. Today's blog breaks down the process of preparing for a home purchase into manageable steps. As your Lake of the Ozarks mortgage lender, I'm here to help you every step of the way!

1. Improve Your Credit Score.

Your credit score has a big impact on your mortgage approval and the interest rates that you can qualify for. If you're thinking about buying a home in the near future, now's the time to take a look at your credit score and see if there's any room for improvement. Not only do you want to look at the credit score, but take a look at your credit report to check for any errors. You want to make sure that your score isn't being penalized for old, paid or settled debts. Maintain a good credit score by ensuring your pay all your bills as agreed or in full and on time. In addition, stop applying for new credit accounts one year before you apply for a mortgage, and don't make any large purchases before closing on your home.

2. Save for a Down Payment. 

One of the most difficult steps in preparing to purchase a home is saving for the down payment. While there are programs available to assist with the down payment, you will get a better interest rate if you have some money to put down. Plus, anything less than a 20% down payment will require you to pay Private Mortgage Insurance. Talk to a mortgage professional at the Lake of the Ozarks to discuss your options.

3. Get a Mortgage Pre-Approval. 

The sooner you talk with a local lender the better! Before you even start looking at homes to buy, you'll want to get a Lake of the Ozarks mortgage pre-approval. This pre-approval will help you determine how much you can afford in a home. Work with your lender to determine the best budget for your unique situation. You want to make sure that your mortgage payment is something that you can comfortably afford. Once you have a price range in mind, you'll be able to start looking at homes that fit your budget. In addition, having a mortgage pre-approval presents you as a serious, qualified buyer, which both realtors and sellers want to work with.

4. Build a Healthy Savings Account.

When preparing to become a home owner, the down payment and closing costs aren't the only expenses you need to be concerned with. It's important that you start building a healthy savings account. It is good to show that you're not living paycheck to paycheck. Having several months' worth of mortgage payments set aside also makes you a better candidate for a mortgage loan at the Lake of the Ozarks. You don't want to spend all the cash that you have on your down payment and closing costs. You need to have some extra money set aside to cover maintenance and repairs of the home.

5. Interview Real Estate Agents. 

Once you've got your finances in order, it's time to start interviewing real estate agents. Having a knowledgeable real estate agent is an important factor in purchasing a home. You want to find an agent that you can trust, knows the area and someone that has your best interests in mind. A good real estate agent is going to help you find the perfect home for your needs, will be there to help you through the negotiating process and see it through to the end of closing on your new home. Your real estate agent will work together with you and your lender to ensure a smooth buying process.

Buying your first home is an exciting process, but following these steps can help you stay organized and on track, resulting in a successful home buying experience. As your mortgage lender 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. Give us a call at 573-746-7211 to start discussing your Lake of the Ozarks home financing needs today!

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.

7 Financial Considerations for Home Buying

Whether you've been thinking about buying a home at the Lake of the Ozarks for a while now or the thought is just now crossing your mind, it's never too early to start looking at your financial situation and get an understanding of the expenses and financial commitment associated with the purchase of a home. Keep reading to learn about some of the financial considerations you'll want to make before jumping into the home buying process.

1. Your Debt-to-Income Ratio. 

One of the first things to consider is your debt-to-income ratio. This number will be able to give you a pretty clear picture of what you can afford to spend on housing without having to live on sandwiches for years to come. As a general rule of thumb, you don't want to go over 40% of your net pay in debt payments - and a Lake of the Ozarks mortgage lender isn't likely to approve you for more than that either. First take a look at your current monthly debt payments, this can include a car payment, credit card payments, personal loans, etc. Once you know how much that is, add in your expected monthly mortgage payment and see how that number compares with your monthly income. You don't want to buy a house that will cause you financial strain for years to come.

2. The Closing Costs. 

As with anything you buy or sell, there are going to be transaction costs. From the home inspection to the title insurance fees, there are additional costs associated with a real estate transaction that you'll want to consider for your budget. The closing costs will run around 2-3% of the total cost of the home. Your mortgage lender at the Lake of the Ozarks will provide a Loan Estimate statement that will detail percentages and financing fees before the closing. Be sure to review this document with your lender to ensure you understand it.

3. A Proper Down Payment. 

While there are programs out there now that allow for a little to no down payment, you should really consider the importance of a down payment. Traditionally, you had to have a 20% down payment to get a mortgage. While that's not required today, it's still a great number to strive for. If you can put 20% down, you can avoid paying Private Mortgage Insurance (PMI). A sizable down payment will save you more money in the long run, on both the insurance fees and the total interest paid on your loan.

4. Taxes, Dues and Other Fees. 

When it comes time to take on a mortgage payment, that price tag on the house isn't the only thing you'll be paying for. It's important that you take into consideration the property taxes and homeowners insurance you will have to pay, as well as any homeowner's association dues. Certain locations in neighboring cities or counties could have different tax brackets to consider. Homeowner association dues will vary from place to place as well. Be sure that you understand these "other fees" before committing to a particular home. You'll need to add these expenses into your budget.

5. Maintenance Costs. 

Most people get so wrapped up in the benefits of owning their own home, they don't think about the additional costs they might incur for maintenance on their home. When you are a renter and something goes wrong with your AC or an appliance, you just call the landlord to fix it. You likely don't have to worry about mowing your lawn or other upkeep on the property. These things are often taken for granted. When you choose to become a homeowner, these are things you're going to have to take care of yourself now. It's not a good idea to rack up a bunch of credit card debt as a new homeowner, so be sure to have some cash on hand for unexpected expenses. Don't use everything you have for the down payment and closing costs.

6. Utility Bills. 

The utility bills associated with owning a home are often higher than those in a rented apartment. Take the water bill for example. While your landlord was footing the bill for the sprinkler system before, now it's your responsibility to pay to keep your lawn and landscaping looking great. Home features such as skylights, large windows and high ceilings may look great, but they aren't necessarily great for your electricity bill. Ask the current owners of the home how much they pay in utilities each month to get an idea of what you need to budget for.

7. The Long-Term Value. 

Another consideration to make when looking at homes to buy is the long-term value of that home. Unless you have great negotiating skill or just a lot of luck, you're likely going to pay close to market value for the home you choose. You'll want to consider what would happen should the market conditions change by the time you're ready to sell. Are there ways that you can add some value to your home? If/when you do decide to sell, you want to be sure that you can at least recoup your investment.

When determining housing expenses, the costs can easily creep up. You think you can afford a certain amount each month on housing, but in all honesty that likely doesn't include other expenses outside of your mortgage.

This is why a budget is so important! Not only do you want to get a mortgage pre-approval at the Lake of the Ozarks to get an idea of what your lender says you can afford, you'll want to take all these items above into consideration to determine what you personally can comfortably afford. As your Lake of the Ozarks mortgage professional, I'm here to work with you every step of the way and answer any questions that you may have about the home buying and mortgage process. Feel free to reach out to me anytime by calling 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.

Getting a Mortgage Loan After Financial Hardship

Many people go through financial hardship at some point in their lives, and that can have negative effects on other aspects of life. In some cases, financial hardship can lead to bankruptcy, foreclosure or a short sale. Unfortunately, this can make it more difficult to obtain a new mortgage loan at the Lake of the Ozarks, even after you have your financial situation under control again. Most people think they have to wait at least 7 years before they can apply again, but this isn't necessarily the case anymore. Keep reading to learn about the 2018 guidelines for various types of mortgages.

2018 FHA Guidelines

For an FHA loan, the following guidelines must be met before you can apply for a home loan after a financial hardship:

• Bankruptcy - 2 year waiting period after discharge of a Chapter 7 Bankruptcy or 1 year waiting period after discharge of a Chapter 13 Bankruptcy (Be sure not to confuse the discharge date with the date the bankruptcy was filed).  
• Foreclosure - 3 year waiting period after the sale/deed transfer date. 
• Short Sale / Deed in Lieu - 3 year waiting period after the sale/deed transfer date. 

In addition to the above waiting periods, you much have re-established your credit, with no late payments in the past 12-24 months, depending on the type of hardship. 

2018 VA Guidelines 

For a VA loan, the following guidelines must be met before you can apply for a home loan after a financial hardship: 

• Bankruptcy - 2 year waiting period after a Chapter 7 Bankruptcy. For a Chapter 13 Bankruptcy, if you have finished making all payments satisfactorily, the lender may conclude that you have re-established satisfactory credit. If you've satisfactorily made at least 12 months' worth of the payments and the Trustee or Bankruptcy Judge approved of the new credit, the lender may give favorable consideration. 
• Foreclosure / Deed in Lieu - 2 year waiting period after the sale/deed transfer date. 
• Short Sale - The VA does not recognize a short sale as a derogatory event. Therefore, if you are able to credit qualify for a VA loan, the short sale would not prevent you from being eligible. 

In addition to the above waiting periods, credit must be re-established, with a minimum 620 credit score. 

2018 USDA Guidelines 

For a USDA loan, the following guidelines must be met before you can apply for a home loan after financial hardship: 

• Bankruptcy - 3 year waiting period after the discharge of a Chapter 7 or 13 Bankruptcy. 
• Foreclosure - 3 year waiting period after the sale/deed transfer date. 
• Short Sale / Deed in Lieu of Foreclosure - If you had big issues, the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640.  If you have a credit score over 640, you may be able to apply after 1 year. 

2018 Conventional Loan Guidelines 

For a conventional loan, the following guidelines must be met before you can apply for a home loan after financial hardship: 

• Bankruptcy - 4 year waiting period after your Chapter 7 Bankruptcy has been discharged. For a Chapter 13 Bankruptcy, there is a 2 year waiting period. 
• Foreclosure - 7 year waiting period after the sale date of your foreclosure. 
• Short Sale / Deed in Lieu of Foreclosure - 4 year waiting period from the date your name was removed from the title for a short sale or deed in lieu not included in a bankruptcy.

In addition to the above waiting periods, credit must be re-established, with a minimum of 620 credit score. Fannie Mae and Freddie Mac have reduced waiting periods in cases of extenuating circumstances. 

If you're concerned about a past financial hardship affecting your current home options, give me a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, I'll work with you to determine your options and offer advice for how to overcome any challenges you may be facing with homeownership at the Lake of the Ozarks.

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.

Breaking Down Your Credit Score

Your credit score can impact a variety of things in your life, including homeownership. Your credit score and credit history is a large determining factor for mortgage approval. Some people may have no clue what their credit scores, while other know what their score is, but don't really understand how that number was determined. In today's blog, your Lake of the Ozarks mortgage lender breaks down the "credit score" according to the FICO model.

Credit Score Factors 

Your credit score is determined by 5 factors of differing importance. These include payment history, amounts owed, length of history, new credit and types of credit used.  

1. Payment History - 35% - Your payment history is based on how often you pay your accounts on time. Late payments can lead to a lower credit score. 
2. Amounts Owed - 30% - How much debt do you have, and how does that compare to your total credit used? Less is more in this case. Using more than 20% of your credit limit may lower your credit score. Lowering your debt can be the key to a better credit score. 
3. Length of History - 15% - When did you first establish credit? The length that you've had a credit history is also a factor. A longer credit history of responsible credit use will likely lead to a higher credit score. 
4. 4. New Credit - 10% - Opening several new credit accounts in a short period of time can lower your credit score. It's very important that during the mortgage process you don't open any new credit accounts. 
5. Types of Credit Used - 10% - Credit comes in many different forms, from credit cards to auto loans, etc. Having experience with different types of credit can help your score. 

Credit Score Facts 

When it comes to understanding your credit score, a lot of people have no idea what their score is, how it's determined or what that means for them. Check out some of these fun facts revolving around credit scores in general. 

• 45% of college students don't know what their credit score is.  
• Over 1/3 of American adults admit they don't know their credit score. 
• 18 years is the average consumer's oldest open credit line. 
• 52% of adults in America haven't viewed their credit score in the past year. 
• The average American has 13 credit accounts showing on their credit report, including nine credit cards and four installment loans. 
• 699 is the average National Credit Score.
• Most Americans use less than 30% of their available credit limits. Only 1 in 6 uses 80% or more. 
• Maxing out credit cards damages credit scores by 10 to 45 points. 
• 43% of women, compared to 32% of men, said it was important to know a partner's credit score before getting seriously involved. 
• About half of Americans don't have a single late payment on their credit reports. 
• More than 8 million people fall victim to identity theft in the U.S. each year. 
• Over 144 million people haven't looked at their credit report in the last year. 

As your mortgage professional at the Lake of the Ozarks, I'm here to work with you every step of the way during the mortgage process. That starts with advice on fixing your credit if needed. We will discuss your Lake of the Ozarks home financing options and determine the best way to move forward with your particular situation. 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.

5 Common Credit Report Errors to Watch For

When it comes to applying for a mortgage loan at the Lake of the Ozarks, your credit score and credit report play an important role in the approval process. In addition to getting approved, your credit score can also affect the terms of your loan. Unfortunately, credit report errors are quite common, therefore, it's important to review your credit report before applying for a home loan to make sure all the information is current and accurate. Keep reading to learn about some of the common credit report errors you should watch for.

1. Incorrect Personal Information. 

The first thing you'll want to check on your credit report is that all the personal information is correct and current. Many people have very similar names and, therefore, their information can easily get mixed up. Ensure that your name is spelled correctly and that your middle initial and/or middle name is listed. Also be sure to review your address, employment information and your SSN. 

2. Duplicate Accounts. 

When reviewing your credit report, check for accounts that are listed more than once. Duplicate accounts make it appear like you have more open credit than you actually do. It also shows that you have more debt than you actually do. Review all the accounts on your credit report for accuracy, ensuring each one is only listed once and that all the accounts do in fact belong to you. 

3. Old Bad Debts. 

After 7 years, credit reporting companies are supposed to remove any bad debts from your credit report. Ensure that anything over 7 years old is no longer listed on your credit report. If you've ever filed for bankruptcy, those discharged debts should also be removed from your credit report. However, your bankruptcy will show on the credit report. 

4. Debts from an Ex-Spouse. 

If you are currently going through or recently obtained a divorce, be sure to remove your name from any joint accounts. This will prevent you from being liable for future debts. Check your credit report after the divorce is final to make sure no new debts from your ex-spouse have been added to your record. Notify the credit reporting companies if any information is incorrect and needs to be removed. 

5. Incorrect Accounts. 

There are a variety of situations that can result in incorrect accounts being listed on your credit report. One issue relates to identity theft, when someone uses your personal information to open a new credit account. Another issue is when a closed account is still being listed on your credit report. In addition to making sure there aren't any incorrect accounts, be sure to check for accounts that are incorrectly reported as late or delinquent. This can happen if a payment is applied to the incorrect account. 

Make sure you report any errors on your credit report to the credit reporting agencies. If you notice discrepancies once you've already begun a mortgage application, be sure to communicate those errors with your mortgage lender at the Lake of the Ozarks. For more information about how your credit report and other factors can affect your Lake of the Ozarks home financing, give us 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.

Why is There So Much Paperwork Required for a Mortgage?

One of the most time-consuming aspects of getting a mortgage loan at the Lake of the Ozarks is filling out all of the paperwork and providing all the proper documentation. If you miss something, your loan can easily get delayed. So why is all this paperwork required? Keep reading as your Lake of the Ozarks mortgage lender explains the reasoning.

New Government Guidelines

People who bought homes twenty years ago feel as though the mortgage loan process was much less complicated, and that's true. The government has since set new guidelines that require more detail, provided through more paperwork. The government wants banks to show beyond a doubt that a borrower is capable of paying back the home loan. During the years leading up to the housing crisis, many people qualified for homes that they would never be able to pay back. Unfortunately, this led to millions of families losing their homes. These new guidelines were created by the government to insure that this would not happen again.

Banks Don't Want to Be in the Real Estate Business

After the housing crisis, when all those families lost their homes, the banks were forced to take on the responsibility of those homes. They had to liquidate millions of foreclosures and negotiate millions of short sales. Banks don't want more foreclosures, just as the government doesn't. This requires banks to double- and triple-check everything on a mortgage application. While the housing crash is responsible for strict paperwork guidelines, it's also responsible for amazing interest rates. In the 90s, people were paying an average rate of 8.12%. Today, borrowers can qualify for interest rates around just 4%!

While the excess paperwork may seem daunting, it's in your best interest as the borrower. No one wants to lose their home, and qualifying for a mortgage you can't afford is an easy way for that to happen. Plus, now you can get great mortgage interest rates on your new home at the Lake of the Ozarks!

As your mortgage lender at the Lake of the Ozarks, I'm here to help you with the paperwork, as well as the rest of the mortgage process. For all your Lake of the Ozarks home financing needs, give us a call at 573-746-7211. I'll discuss your loan options, offer competitive interest rates and back it up with the first-class service you deserve, I guarantee!

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.

Completing Your Loan Application

When you're ready to buy a home at the Lake of the Ozarks, one of the first steps in getting financing is filling out the loan application. Today's blog from your Lake of the Ozarks mortgage lender offers some guidance on completing that application.

Meeting with Your Lake Lender 

The first thing you want to do when applying for a mortgage is talk to your local lake lender. Together you will go over everything needed for your loan application. After your application is filled out and has been pre-approved, your lender may ask for additional information to complete the mortgage process. To give you an idea of what to expect, we've put together a document checklist for your review. By gathering as much of the information and documents as possible before sitting down with your lender, you'll be able to speed up the process and likely avoid delays.

Mortgage Document Checklist 

The following information and documents are usually required during the Lake of the Ozarks home loan process. To speed along the process, you'll want to start gathering the information now.

Personal Information: 

• Social Security Number
• Date of Birth 
• Current driver’s license or photo ID
• Current and previous addresses
• Names and information of any co-signers or co-borrowers

Income & Employment Information: 

• Most recent two years W-2
• Current pay check stub reflecting year-to-date income of 30 days or more.
• Present employer’s name, address and phone number. Length of employment, position and salary. If employed less than two years, please provide previous employer’s name, address and phone number to cover two consecutive years.  Exact dates are required.
• Last two months’ bank statements for all accounts.  Please provide explanations of any deposits larger than normal paycheck.
• If self-employed or paid any commission or have any business income, please bring complete copies of your federal tax returns along with all schedules and W-2s for the past two years. Include corporate or partnership returns, if applicable, for your business.  Also include a year-to-date Profit & Loss statement.
• Verification of other income needed to qualify, such as retirement, rental, interest or dividend income.  If receiving Social Security or pension income, please bring current awards letter.

Other Information/Documents: 

• If applying for an MHDC grant, the past three years’ federal tax returns are required.
• Evidence of child support payments for the last 12 months, if applicable, along with divorce decree and court order for child support payment and alimony.
• Divorce decree order or any financial obligation incurred through a court order, if applicable.
• If you have a property for sale, please bring the accepted offer to purchase or copy of listing contract.
• If you own investment properties, please provide address, name of mortgage lender, mortgage statement and lease agreement on properties.
• If any judgments or bankruptcy has been filed, please supply a copy of the judgment or bankruptcy discharge and petition.  Also, furnish a letter of explanation of the same.
• For a VA Loan, please provide a certificate of eligibility and a copy of DD 214. 
• Copy of the trust papers if you want the property held in a trust
• Copy of accepted contract signed by purchasers and sellers, copy of earnest money check

Please keep in mind that some documents may not apply to you or may be difficult to provide. If you have questions about these items, or have trouble collecting them, please contact your mortgage lender at the Lake of the Ozarks for assistance. 

As your local lake lender, I'm committed to working with you every step of the way! I'll discuss your Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve! Give me a call today at 573-746-7211 to discuss your home financing needs. 

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.