MHQ - Mortgage HeadQuarters

With the thrill that comes with an accepted offer and a "yes" from the lender, some homebuyers make the error of carrying their enthusiasm straight to the mall or appliance store. However, there still remains a few major hurdles to jump before your loan closes. Below, Missouri Headquarters of Missouri is sharing a list of things to avoid during this crucial time of your home purchase. 1. Don't overspend on big-ticket items  Although you will be listing ways to turn your new house into a showplace, try to stay away from major purchases like appliances, electronics, or furniture. You will also want to stay away from vacations and car purchases until the closing of your loan. Financing new bedroom furniture with a store card or a bank credit card could put your credit worthiness at risk during the time it means the most. It's also a red flag to make those big purchases with cash. Lenders are examining your cash reserve when considering your loan. 2. Don't lo...

Applying for a mortgage and buying a house is a major financial decision that can affect your bottom line for up to 30 years or more, so it is important to understand how much house you can actually afford. This week, we're taking a look at a few things you should consider when planning to buy a home at the Lake of the Ozarks to ensure you're comfortable with your home purchase. Consider Your DTI The first step in paving a smooth financial path for yourself is to add up your monthly income and expenses. Most mortgage lenders use the 28-41 rule to determine what you can afford and how much money they’re willing to lend you. The 28-41 rule states that your maximum household expenses shouldn’t exceed 28 percent of your gross monthly income. Your total debt, which includes everything from student loans to credit cards, should fall below 41 percent of your income. This number is your debt-to-income ratio, or DTI. However, in today’s new lending world, ratios have changed to ...

As we make our way into the fourth quarter of the 2018 fiscal year, many people are beginning to think about the upcoming tax season. If you've recently bought or are considering  buying a new home at the Lake of the Ozarks , you may have some questions about what kind of tax benefits are available to you when you purchase a home. To help answer some of those questions, we wanted to share with you some tax deductions that every homeowner should know about! Second Home/Vacation Home Homeowners can deduct mortgage interest and property taxes from second homes and vacation homes as long as the properties are rented for 14 days or less per year. If any rental exceeds the 14-day limit per year, the IRS considers this as an income property. When such income property is sold, the seller will either have to pay the capital gains tax or conduct a tax-deferred exchange for other income-producing real estate of equal or greater value. For income property, mortgage interest, property tax...

For today's homeowners, home equity is a financial resource that can gain momentum over time and offers great financial benefit. Building equity can be a long-term strategy for growing wealth, but it's also a great resource when you need a little extra cash for financial endeavors or any home improvements you're wanting to complete. Let's take a look at what a home equity loan is and some of the benefits for qualified recipients. What is Home Equity? Home equity is the market value of a homeowner's unencumbered interest in their real property. In other words, it's the difference between the home's fair market value and what you still owe on the home (liens and loans). This gain can come from paying down the principal balance of your loan, or an increase in market value over time. What is a Home Equity Loan? A  home equity loan is a type of second mortgage . Your “first” mortgage is the one you used to purchase your home, but you can use additiona...

When  purchasing a home at the Lake of the Ozarks , an FHA mortgage is an attractive option for anyone who is looking for an option that allows a down payment of 3.5%. If you qualify, the opportunity to come up with a lower down payment and the reduced/limited closing costs is a great benefit to any home buyer. This week, MHQ Mortgage Headquarters is sharing with you some information on FHA loans and what you need to know as a consumer. What is a FHA Loan? An FHA Loan is a mortgage that's insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers. FHA loans are also a good option for homebuyers who may not be able to make a large down payment. Even borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage. Credit Score Requirements FHA Loan applicants must have a minimum FICO® score of 580 to qualify for the low down pay...