Financing Your Home with a VA Loan

Are you a veteran looking to purchase a home? With favorable terms, competitive interest rates and no monthly mortgage insurance premium, VA Loans are designed to make homeownership more affordable for qualified U.S. veterans. Keep reading to learn about financing your home at the Lake of the Ozarks with a VA Loan.

What is a VA Loan? 

VA Loans are a benefit offered to qualified veterans. While VA Loans are provided by private lenders, the VA guarantees a portion of the loan against loss. This allows the lender to offer more favorable terms. This type of loan can be used to either purchase a new home for primary residence or refinance an existing home. Most active duty military, veterans, reservists and National Guard members are eligible for the VA loan program. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply. For more details on eligibility, please visit: http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp. 

 Benefits of a VA Loan 

Probably the most important benefit of the VA Loan is that a down payment is not required; up to 100% financing is available with these loans. In addition, no monthly mortgage insurance premiums are due. Other loan programs require this insurance when a down payment of less than 20% is made. This translates to a significant monthly savings for those borrowers. Other benefits of a VA Loan through your Lake of the Ozarks mortgage lender include no pre-payment penalties, low closing costs and in-house processing and underwriting. While the borrower needs sufficient income and no excessive debt, the guidelines for a VA Loan are typically more flexible compared to conventional loans and other loan options. Another benefit is that the VA will assist borrowers that are struggling to make their payments. The VA will actually negotiate with the lender on the borrowers behalf. If you're a qualified veteran, there's really no better loan option for you. The benefit can also be reused; it's not just for first-time home buyers.

If you're a veteran and looking to purchase a home at the Lake of the Ozarks, give me a call at 573-746-7211. We can work together to determine your eligibility for the VA Loan program, and I'll be here for you every step of the way. Let me help get you and your family into that home you've been dreaming of. Contact the best mortgage lender at the Lake of the Ozarks to get started 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

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 Common Problems that Can Arise During the Mortgage Process

As the best mortgage lender at the Lake of the Ozarks, it's my job to make the mortgage process as smooth as possible. Unfortunately, there are a few issues that can arise that are out of our hands. Let's take a look at these common issues and how we can try to avoid them during your Lake of the Ozarks home loan process:

1. Home Inspection. 

While it's rare for the borrower to back out of the deal due to something found during inspection, it does happen occasionally. Unfortunately, there's not much the lender or real estate agent can do if there's an unfixable problem with the property. Many times it's something that could have been disclosed early on, but wasn't. The best way to avoid any issues like this is to ask the seller a ton of questions during the beginning stages, to ensure everything is disclosed as early as possible during the transaction.

2. Appraisal Valuation.

Another common issue that can come up is if the home is appraised higher or lower than the valuation in the initial offer. This problem is much less likely to occur in popular markets, and typically only comes up when there aren't comparable sales. If you're in the market for a 4 bedroom, 3 bath single family home you shouldn't have this issue. It mainly occurs when you're in the market for a million dollar home, which is harder to find something to compare it to.

3. Application Issue. 

While some loan closings are prevented due to the actual property, more often than not the issue arises from the loan application. Sometimes the documentation doesn't match the information provided on the original application. One common error on the application is the amount of qualified income of a self-employed borrower. The income listed on the application needs to match what is listed on the borrower's tax return. Obtaining a pre-approval is a great way to avoid some of the application issues that could arise later in the game.

4. Tax Deductions. 

As stated before, the income on the application has to match what's listed on the tax return. While it may have seemed like a great idea to take all those deductions, when it comes to applying for a mortgage that's not always the case. You can't just add those pieces back into the amount of income you make. You have to go off what your tax return says, whether you actually made more than that or not.

5. Borrower's Credit. 

One of the main issues that can arise during the underwriting process has to do with the borrower's credit. If the borrower has a bad track record for repaying money loaned, the underwriting is going to find that out. The borrower's credit history will be thoroughly gone over and the underwriter may even contact past or present creditors. In addition to credit history, the underwriter is going to look at the borrower's debt-to-income ratio. If the borrower has too much debt relative to their income, problems will arise during the underwriting process. The debt-to-income ratio is one of the most important factors in mortgage underwriting.

6. Bad Timing. 

Mortgage loan closings can also fail due to timing issues caused by last-minute changes. These seemingly simple changes could require the lender to issue a new disclosure statement, therefore delaying the closing. If the seller included a contingency that the closing must occur by a specific date, such delays can be problematic for both the buyer and the seller. Another timing issue can occur when the borrower does something to alter his or her financial standing. Buyers should avoid making any other large purchases or switching jobs until after the closing has occurred.

The best way to avoid these problems is to disclose as much information as you can from the beginning, even if you think it might not be necessary. It's better to disclose too much, than not enough. Be sure to ask your Lake of the Ozarks mortgage lender and your real estate agent as many questions during the beginning of the process and make sure to get a pre-approval before moving ahead with an offer on a house. If you're considering purchasing a home at the Lake of the Ozarks in the near future, 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

Sr. Residential Mortgage Lender

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.

Good News Comes to Those Who Wait

That was certainly true last week, when the delayed Jobs Report for October came in better than expected. Read on for details.

The Jobs Report for October revealed that employers added 204,000 new jobs, well above the 100,000 expected. In addition, the number of job creations for August and September was revised higher by 60,000. The Unemployment Rate ticked up to 7.3 percent from 7.2 percent and was in line with estimates. The Labor Force Participation Rate (LFPR), a measure of how many people are looking for work, fell to 62.8 from 63.2 and remains at 35-year lows. It's important to note that in a recovery, the LFPR should be moving higher, not lower. Overall this was a good report on the surface, but there are still hurdles to jump in the coming months.

In other key news, the first of three readings on third quarter Gross Domestic Product (GDP) showed that the U.S. economy expanded by 2.8 percent, up from the second quarter reading of 2.5 percent and well above expectations. The rise was due in part to a buildup in inventories, a pickup in trade, and increased spending by state and local governments.

However within the report, consumer spending--the main driver of the U.S. economy--fell to a paltry 1.5 percent, the slowest rate in three years. This is one reason the strong Jobs Report was significant: If consumers aren't confident about their jobs or are out of work or underemployed, spending will continue to be soft. That would not a good sign for the U.S. economy going forward.

What does this mean for home loan rates?  Is it a good time to buy a home at Lake of the Ozarks? The Fed's current Quantitative Easing program continues to help keep home loan rates attractive. Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. The Fed has said that its decision regarding when to taper these purchases will be dependent on economic data. If economic data in the coming weeks is strong, like the Jobs Report was, the Fed could discuss tapering its purchases in its December meeting of the Federal Open Market Committee. This could have a big impact on home loan rates heading into 2014.

The bottom line is that Lake of the Ozarks home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

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. Residential Mortgage Lender

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

NMLS #: 493712