Your Lake of the Ozarks Mortgage Lender: things to do before buying a home

Wednesday, July 20, 2016

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!

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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.

Thursday, May 12, 2016

4 Prerequisites to Buying a Home

The home buying process is made up of a variety of variables. In order to get things done easily and efficiently, you need to have a plan. If you're thinking about purchasing a home at the Lake of the Ozarks, consider doing some things first to help set you up for success. Use this checklist of prerequisites to get you started on the right track to a smooth home buying process.

1. Improve Your Credit Score.

Depending on your timeline for purchasing a house, if you have time to improve your credit, you should. Your credit score is a huge factor in determining your mortgage interest rate. The better your credit score, the more likely you are to get approved and the better rate you're going to get. Anything below a 660 has room for improvement. If you have a credit score of 750 or above, you should be able to get a great deal. Improve your chances of securing a mortgage by pulling your credit report and making sure that you're not being penalized for old, paid or settled debts. From this point forward, make sure you don't do anything else to jeopardize your credit score. In other words, don't take out any new lines of credit or make any large purchases, and keep this up until after you've closed on the home.

2. Know How Much You Can Afford.

One thing that can get many first-time home buyers in trouble is not understanding the entire expense of owning a home. In addition to the mortgage payment, you need to consider taxes, insurance, utilities, repairs, etc. Not only does the amount you can afford affect you and your bank account, but your debt-to-income ratio is something that your Lake of the Ozarks mortgage lender will take a look at as well. As a general rule (each loan type has different requirements), you don't want your monthly home payment to exceed 31% of your monthly income. Improve your chances at a successful home purchase by trying on the payment in advance. To fully understand the financial obligation you'll be taking on, try setting aside your payment amount each month. By doing this well before you sign the papers, you'll be able to see if you can handle what you're signing up for before you're locked into it.

3. Increase Your Savings.

While it's important to have some money set aside for a downpayment, having a nice balance in your savings account is also a good idea. Your lender wants to see that you're not just living paycheck to paycheck, and that if some unexpected expenses come up, you'll still be able to make your mortgage payment. If you have enough set aside to cover several months' mortgage payments, you're a much better loan candidate. Improve your chances of getting the home of your dreams by setting aside some extra money each month. On average, you can expect to spend around 2.5-3% of the homes value annually, for upkeep, maintenance and repairs.

4. Get a Mortgage Pre-Approval.

If you're serious about purchasing a home, you need to make sure your finances are in order before you even start looking at houses. The pre-approval process not only gives you peace of mind that you can get a loan, but it shows the seller that you're serious. If you want the seller to accept your offer, they need proof that you will follow through and a pre-approval is a great way to show them that. In addition, the pre-approval process will reinforce the earlier step of deciding how much home you can actually afford. Just keep in mind that what the bank says you can afford, isn't necessarily what you're comfortable with paying.

If you're considering a home purchase in the near future, but aren't sure where to start, give me a call at 573-746-7211. As your trusted mortgage lender at the Lake of the Ozarks, I'm here to help with all your financing needs. We'll work together to find a Lake of the Ozarks home financing solution that works for you and your situation. I'll be there for you every step of the way to answer any questions and make sure the process runs as smoothly as possible.