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.

Fun Facts About Renters (and Why You Should Consider Buying)

One of the most important financial decisions you have to make is whether to rent or own your home. While there are benefits to both renting and owning, many renters don't realize how much they could potentially be saving by investing in a home today. In today's blog, your Lake of the Ozarks mortgage lender offers a few facts and considerations about renting vs. buying.

Fun Facts About Renters

1. According to the National Multifamily Housing Council, 37% of households in the United States rent, while the other 63% prefer homeownership.

2. According to NAR Chief Economist Lawrence Yun, the average renter missed out on $41,000 in equity by not buying three years ago.

3. Nationally, 50% of all renters spend more than 30% of their income on housing according to the NY Times.

4. According to PulteGroup, 89% of renters think owning a home is part of the American Dream.

5. Approximately 32% of potential homebuyers plan to buy in the next couple years. 

6. Around 90% of millennials prefer owning a home over renting one. 

7. The median gross rent from 2011-2015 was $758.

8. Buying a home is roughly 45% less expensive than renting.

9. According to Trulia, rent prices have risen by 4.7% in the past year, while asking home prices have only risen 2.3%.

Considerations About Renting vs. Buying

While renting is a great short-term option, financial gains of homeownership are applicable if you plan to stay in the home for 5-10 years. With current interest rates extremely low, most renting situations are more expensive than owning. In addition, when you choose to rent, you aren't building equity. Creating an asset, providing a legacy and increasing net worth are all benefits of becoming a homeowner that you can't get as a renter. With the help of a mortgage professional at the Lake of the Ozarks, you can weigh the pros and cons of buying and renting to decide which option best suits you in the short-term and the long-term.    

While renting might be the best option for some people, you can see from the facts above that homeownership has its benefits. If you're considering purchasing a home at the Lake of the Ozarks, give me a call at 573-746-7211 to discuss your options. With mortgage rates still hovering near all-time lows, now is the time buy! I'm committed to working with you every step of the way. I'll discuss Lake of the Ozarks home 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.

What is a Rate Lock?

You've decided on purchasing a home at the Lake of the Ozarks. You know that mortgage rates are changing daily, so how do you make sure the rate originally available to you doesn't go up? Today's blog discusses rate locks and some common questions in regard to locking in a mortgage rate.

Rate Lock 

A rate lock is a guarantee from your Lake of the Ozarks mortgage lender that they will give you, the borrower, a certain interest rate, at a certain price, for a specific time period. It protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate. The downside, however, is that if rates drop after the rate is locked, the borrower might not be able to take advantage of that opportunity.

How a Rate Lock Works

Once your loan application has been approved, your mortgage lender may offer you a rate lock. Sometimes there is a fee for this, and the fee varies widely according to the amount and term of the loan, as well as the rate lock period. Rate locks are typically available for 30,45 or 60 days, and sometimes longer. Typically a rate must be locked at least a few days, but usually a week, before closing. This allows the lender time to prepare the closing package. If the rate lock expires before closing, you may be able to get an extension. If an extension is not granted, you'll end up paying the market rate, which could be higher.

Reasons Your Interest Rate Could Still Change

Even if your rate is locked, it could still change if there are any changes made to your application. Here are some common reasons a borrower with a rate lock could still see a change in interest rate:

• A change in the type of loan 
• A change in the loan amount
• A change in the downpayment amount 
• A change in the home appraisal
• A change in your credit score 
• A change in your verified income  

Questions to Ask Your Lender

Rate lock policies vary from lender to lender. Avoid any surprises with your interest rate by asking your mortgage lender at the Lake of the Ozarks the following questions:

• What does it mean if I lock my rate today? 
• What rate lock time frames are available to me?
• What are the fees associated with my rate lock? 
• What happens if my closing is delayed and the rate lock expires?  

To learn more about what mortgage rates are available to you and how to lock them in for your Lake of the Ozarks home purchase, call Lakelender Michael Lasson at 573-746-7211. I'm here to work with you every step of the way. I'll discuss your Lake of the Ozarks home financing needs, 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.

6 Things That Can Negatively Affect Your Mortgage Deal

If you're thinking about purchasing a home at the Lake of the Ozarks, chances are you're going to need financing. Many factors affect the loan approval process, some positively and some negatively. In today's blog, your Lake of the Ozarks mortgage lender addresses a few things that can negatively affect your mortgage approval.

1. Unstable Work History.

When applying for a mortgage, one of the most important things is showing proof that you can make your payments. Having a stable work history and a stable income is one way to do that. Attempting to get a job with less than two consecutive years in the same occupation or field might affect your chances of loan approval. Any relatively recent gaps in employment are also a red flag in the mortgage process. Avoid changing jobs during the mortgage process as this can affect the loan approval as well.

2. Past Foreclosures or Bankruptcy.

Foreclosures, no matter how old they are, can hurt your mortgage deal. Foreclosures negatively affect your credit score, making it harder to obtain credit in the future. Having a foreclosure on your credit history also means you can expect higher interest rates if and when you do get approved. Numerous bankruptcies can also negatively impact your ability to obtain a mortgage. Bankruptcy seriously hurts your credit score and can stay on your credit report for up to ten years. Managing your new debts and giving your credit score time to improve is the best way to work past this.

3. Non-Sufficient Funds.

To ensure that a borrower has their finances in order and can handle having a mortgage payment each month, the underwriter scrutinizes bank statements. Any non-sufficient funds on those bank statements could raise a red flag in the approval process. Having all of your funds "gifted" to you can also make it more difficult to obtain a mortgage. Proper documentation of any gifted funds is crucial to the loan transaction.

4. High Debt-to-Income Ratio.

In addition to your credit score, mortgage underwriters also take a look at your debt-to-income ratio. One common occurrence here at the Lake of the Ozarks that creates a high debt-to-income ratio is when a borrower tries to keep their current residence while obtaining a mortgage. There are a lot of second homeowners at the Lake of the Ozarks, as this is a top vacation destination in the Midwest. Talk to a mortgage professional to see if your finances, credit score and debt-to-income ratio are good enough to obtain a second home.

5. Late Payments & Open Collections.

One factor that can seriously affect your chances at a Lake of the Ozarks home loan approval is how you manage your debts. Late payments are a big red flag for mortgage underwriters. If you have anything that has gone to collections, your ability to obtain a mortgage becomes a lot more difficult. Be sure to make your payments and do so on time to avoid issues during the mortgage process.

6. Large Increase in Housing Expenses. 

Whether you're selling your home and upgrading to a larger one or transitioning from renting to buying, having a large increase in housing expenses is a red flag in the mortgage approval process. If a borrowers payments are near doubling, a mortgage approval is going to be difficult. Again, the mortgage professionals want to make sure that you can handle the monthly mortgage payment - and owning a home comes with more expenses than just the mortgage.

To discuss your current situation in detail with a mortgage professional at the Lake of the Ozarks, call 573-746-7211. When it comes to your Lake of the Ozarks home financing needs, I'm committed to working with you every step of the way.

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.

5 Questions to Ask Yourself Before Buying a Home

Are you considering becoming a homeowner for the first time? When it comes to purchasing a home at the Lake of the Ozarks, there are a lot of things you should consider. Before diving into the home buying process, ask yourself these 5 questions:

1. Am I Ready for Homeownership? 

Becoming a homeowner is a big undertaking. If you are used to renting, there are a lot of luxuries of having a landlord that will go away when you own your own home. What do you do when your heating or cooling system stops working? What if the garbage disposal breaks? Undertaking homeownership comes with a lot of added responsibility. While homeownership also comes with advantages, it is not a decision that should happen overnight. Consider what it means to be a homeowner and do your research before diving in.

2. Have I Considered ALL the Costs of Homeownership? 

Your Lake of the Ozarks mortgage is not the only expense you have to worry about. As a homeowner, you should consider the costs of insurance, taxes and utilities, as well as any repair needs that arise. Few buyers actually plan for these added costs; they look at the mortgage payment as being less than their current rent, but those are not the only numbers to consider.

3. How Much Can I Afford? 

One of the most common questions prospective homeowners ask is, "How much can I afford?" Before starting your home search, it is important to know what you can afford. You do not want to find the perfect house to realize it is out of your affordable price range. Talk to a mortgage lender at the Lake of the Ozarks to help you determine not only how much you can qualify for in a loan, but how much you can reasonably afford (with all the above homeownership costs considered). 

4. How Much Do I Have for a Downpayment?

While there are programs out there with little-to-no downpayment requirements, your downpayment is something to consider. The more you can put down up-front, the less you will have to borrow and the less you will pay in interest charges. If you have been saving for a home purchase for awhile now, then you will have no problem making a downpayment. In addition, often times you can be gifted the downpayment from a relative. However, if that's the case, be sure to read our blog about receiving a downpayment gift.

5. Am I Prepared to Pay Closing Costs?

The downpayment is not the only up-front cost you need to consider. You need to make sure you have enough cash to cover the closing costs. It is suggested that home buyers have approximately four percent of a home's purchase price set aside to cover these fees. Make sure that you have enough cash set aside for the closing costs and that paying these fees will not deplete your savings and/or emergency funds. If you do not think you have enough cash to cover these fees, talk to your Lake of the Ozarks mortgage lender about your options for lower closing costs or wrapping some of the costs up into the mortgage.

Finding a reputable mortgage company at the Lake of the Ozarks is the first step in a successful home buying process. Give us a call at 573-746-7211 to discuss your Lake of the Ozarks home financing options. As your local lakelender, I'll work with you every step of the way and back it up with the personal 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.

4 Tips to Finding the Perfect Home

Are you in the market for a new home? Whether you're a first-time home buyer, looking to downsize or find something larger, there are a lot of things to consider before you start your search. In today's blog, your favorite mortgage lender at the Lake of the Ozarks offers a few tips to help you find your dream home!

1. Know Your Budget. 

One thing that can really put a damper on the home buying process is finding a home you love, only to find out you can't afford it. When purchasing a home at the Lake of the Ozarks, your first step should be to get a loan pre-approval. Once you know how much you're able to borrow, you'll be able to create a realistic budget. In addition, you'll want to consider how much you can afford to pay monthly. Just because you get approved for a large loan amount, doesn't mean you can comfortably make those payments each month. The price of the home you purchase is a large factor that should be considered carefully.

2. Find a Great Real Estate Agent. 

If you don't have a real estate agent in mind, your Lake of the Ozarks mortgage lender can recommend one. While you may feel like you can find a home on your own, a real estate agent brings expertise in the industry that you don't have. They are familiar with the local market, have access to properties just coming on the market, are good at negotiating and can walk you through the entire process, avoiding added stress during your home search. With the help of a real estate professional, you'll find the perfect home in no time.

3. Make a Features List. 

After price, features are the next thing you'll want to consider. It's unlikely that you will find a home that has everything you want within  your price range. Therefore, it's a good idea to create a features list before you start your shopping. You'll want to divide this list into sections: features you require and features you could do without if you had to. Consider the size of the home, the number of bedrooms and number of bathrooms. Be sure to keep your interests top of mind throughout the home buying process.

4. Consider the Location. 

While the house itself may be most important, you'll also want to consider where it's located. How far is the home from your work? What school district is the home in? Is it considered a "safe" neighborhood? Consider the distance of the home from various activities you like to participate in. Do you want a home within walking distance to a park? Location is an important factor to be considered. Long commutes can add extra expenses that could possibly be avoided when purchasing a home in a different location.

If you are ready to start your home search, call 573-746-7211 to discuss a Lake of the Ozarks mortgage pre-approval. When it comes to your Lake of the Ozarks home financing needs, I'm committed to working with you every step of the way. I'll discuss 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.

4 Things to Do Before Starting Your Home Shopping

Have you been thinking about purchasing a home at the Lake of the Ozarks? Buying a home is one of the biggest investments you'll ever make and it's important that you don't just jump right in. Your Lake of the Ozarks mortgage lender is here to help by providing you with a list of things you should do BEFORE you start your home shopping.

1. Talk to a Mortgage Lender First. 

When you're ready to buy a home, what's the first thing you think about? You might say that you need to find a real estate agent to help you find the perfect home. While eventually you will want to find a reputable real estate agent, you need to talk to a mortgage lender first. You need to know how much you can qualify for and how much you can afford in monthly mortgage payments. Not getting pre-approved for a mortgage loan is the most common mistake home buyers make.

2. Create a Proper Budget. 

You have to remember that your mortgage payment is not the only expense you have to consider when purchasing a home. You need to create a budget that also factors in taxes, insurance, homeowners association fees (if applicable), home maintenance and repair expenses that may arise, etc. Be sure you consider everything involved and make sure you are comfortable making all those monthly payments and that you have enough in savings to cover unexpected emergencies related to owning a home.

3. Determine Exactly What You Want. 

In addition to knowing how much you can afford, you need to determine what exactly you're looking for in a home. You may already know that you need at least 3 bedrooms and 2 bathrooms, but what other features do you need your new home to have? Make a list of necessities vs wants, so that you can check them off as you're looking at potential homes to buy. Having this list will make it easier to compare different homes during your search.

4. Save Money and Get Your Assets in Order. 

If you've been thinking about buying a home for awhile now, chances are you've already started saving money. However, if you haven't, now is the time to start. While you are getting a loan to cover the cost of the house, you're going to need cash for some upfront expenses, such as a downpayment, closing costs, escrow accounts, reserves, etc. The more money you're able to offer for a downpayment, the better terms you can get for your loan. The more money you have saved up in reserves, the less likely you are to default on your loan. Having your finances in order is one of the most important aspects of buying a home.

After you've done these steps, now you can talk to a real estate agent and start your home search. You, your mortgage lender and your real estate agent will all work together throughout the entire home buying process. There's a lot that goes into getting a home loan at the Lake of the Ozarks and making that purchase. As the best mortgage lender at the Lake of the Ozarks, I'm here to help you every step of the way. Give me a call at 573-746-7211 to get started on your pre-approval 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

Sr. Loan Officer

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.

5 Ways to Save for a Home Loan

For most home buyers, paying in cash isn't an option. Most people will have to secure some type of home loan at the Lake of the Ozarks. While there are programs out there that require little to no downpayment, home buyers still need to have some cash on hand. Plus, with a downpayment, home buyers are likely to get a better interest rate. So how do you come up with that cash you need to have on hand? Your Lake of the Ozarks mortgage lender has a few ideas on ways you can save for a home loan:

1. Plan: Budget your spending and set up direct debit to make it easier each week.

One great way to make a budget is to create a spreadsheet. Start with your net monthly income. First you'll want to subtract your set expenses, such as rent, student loan payments, car payments and credit card payments. With the money that's left over, you'll need to decide how you want to spend it. Start keeping your receipts, everything from gas purchases to dinner out with your friends. Anything you spend money on needs to be documented. Once you know where all your money is going, you can see where you might be able to cut costs. To create savings, you're going to have to be ruthless. Be sure you can justify everything you've bought.

2. Limit: Think to reduce costs. Only go out once or twice a week. Don't over do it.

As mentioned above, the only way you're going to be able to increase your savings is to limit your spending. One of the easiest ways to cut costs each month is to limit the amount of times you go out. Whether it's having dinner with an old colleague or grabbing drinks with your girlfriends, a night out can easily add up to more than you were planning on spending. If you go out several times a week, those costs can significantly add up. The goal here isn't to lock yourself in the house and never have any fun. You just need to be aware of how much you're spending and what exactly you're spending it on.  

3. Increase: Create a second income. Consider selling on Ebay or freelance. It all counts.

Some people have seen success in saving money by turning their hobby into an extra paycheck. Any money generated from this new source of income should go directly into your downpayment savings account. From giving piano lessons or selling crafts to waiting tables on the weekends, there are endless opportunities to make some extra cash.

4. Debts: Pay them off, such as a credit card. It can help your credit which is needed to obtain a home loan.

While saving money for a downpayment is important, paying off debts is also important. If you're taking money away from paying off credit card bills to save up for your downpayment, you're not really doing yourself any good. Pay off any debt that you can, especially anything with high interest first. Not only will that be one less monthly expense you have to worry about, but you can improve your credit. The better your credit, the better deal you're going to be able to get on your home loan. 

5. Invest: Put your money in a high interest account and let it do the work for you. 

There are a variety of options for high-interest checking and investment accounts. Be sure to consult with your financial advisor or tax professional on which option would best suit your situation. Keep in mind that funds that may be used for a downpayment should be easily accessible; check to see if there are early withdrawal fees or penalties for using these funds before you commit to any option.

Whether you're looking to buy a home next year or 5 years down the road, its never too early to start saving for a downpayment. If you are thinking of purchasing a home at the Lake of the Ozarks sooner rather than later, give me a call at 573-746-7211. As your Lake of the Ozarks mortgage lender, I can work with you on a pre-qualification so you have an idea of how much you can borrow and how much you'll need to save for a nice sized downpayment.

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. Loan Officer

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.