Mortgage Centers of the Ozarks
The leading mortgage lender of Springfield, Joplin and all of Southwest Missouri
Trying to find the right home loan can be difficult. Finding the right company to help you get your loan can be even more confusing. With literally thousands of lenders to choose from, borrowers can easily become overwhelmed.
Fortunately, at Mortgage Centers of the Ozarks , our mission is to set a high standard in the mortgage industry. We are committed to quality customer service - putting the people we serve first.
Take advantage of our expertise in the residential lending industry by applying online today. You will find that the skill, professionalism, and consideration we give to each of our clients make getting your loan a successful endeavor.
Give us a call today at 866-626-0271 for a free, personalized consultation. You can also apply online. It is fast, secure, and easy.
Why wait? Let us go to work for you!
Loan Programs for Southwest Missouri
Conventional: Traditional loan programs that usually require 5% down and offer competitive interest rates. Documentation and fair to good credit are necessary.
103% Purchase: 0% down payment required and closing costs can be financed up to 103% of the purchase price. Only single-family homes that will be owner-occupied are eligible. First time homebuyer status not required and there are no income limits.
FHA Mortgage: Backed by the Department of Housing and Urban Development, this mortgage offers the borrower the ability to put as little as 3% down payment – and they can even finance "allowable" closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.
VA Mortgage: Backed by the Veterans Administration and the Federal government, it is similar to FHA except that you have to be a qualified Veteran or military person.
Flex 97%: Similar to FHA, but without maximum mortgage amount limitations. Must be a single family, owner occupied home and borrower must have a credit score of over 680.
Loan Process for home buyers in Joplin and Springfield
Pre-Qualification: Pre-qualification starts the loan process. Once a lender has gathered information about a borrower's income and debts, a determination can be made as to how much the borrower can pay for a house. Since different loan programs can cause different valuations a borrower should get pre-qualified for each loan type the borrower may qualify for.
In attempting to approve homebuyers for the type and amount of mortgage they want, mortgage companies look at two key factors. First, the borrower's ability to repay the loan and, second, the borrower's willingness to repay the loan.
Ability to repay the mortgage is verified by your current employment and total income. Generally speaking, mortgage companies prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years.
The borrower's willingness to repay is determined by examining how the property will be used. For instance, will you be living there or just renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, thus the emphasis on the Credit Report and/or your rental payment history.
It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, your stronger point could make up for the weak one. Mortgage companies could not stay in business if they did not generate loan business, so it is in everyone's best interest to see that you qualify.
Mortgage Programs and Rates: To properly analyze a mortgage program, the borrower needs to think about how long he plans to keep the loan. If you plan to sell the house in a few years, an adjustable or balloon loan may make more sense. If you plan to keep the house for a longer period, a fixed loan may be more suitable.
With so many programs to from which to choose, each with different rates, points and fees, shopping for a loan can be time consuming and frustrating. An experienced mortgage professional can evaluate a borrower's situation and recommend the most suitable mortgage program, thus allowing the borrower to make an informed decision.
The Application: The application is the true start of the loan process and usually occurs between days one and five of the start of the loan process. With the aid of a mortgage professional, the borrower completes the application and provides all Required Documentation.
The various fees and closing cost estimates will have been discussed while examining the many mortgage programs and these costs will be verified by the Good Faith Estimate (GFE) and a Truth-In-Lending Statement (TIL) which the borrower will receive within three days of the submission of the application to the lender.
Processing: Once the application has been submitted, the processing of the mortgage begins. The Processor orders the Credit Report, Appraisal and Title Report. The information on the application, such as bank deposits and payment histories, are then verified. Any derogatory credit remarks, such as late payments, collections and/or judgments require a written explanation. The processor examines the Appraisal and Title Report checking for property issues that may require further investigation. The entire mortgage package is then put together for submission to the lender.
Required Documents: If you are purchasing or refinancing your home, and you are salaried, you will need to provide the past two-years W-2s and one month of pay-stubs: OR, if you are self-employed you will need to provide the past two-years tax returns. If you own rental property you will need to provide Rental Agreements and the past two years' tax returns. If you wish to speed up the approval process, you should also provide the past three months' bank, stock and mutual fund account statements. Provide the most recent copies of any stock brokerage or IRA/401k accounts that you might have.
If you are requesting cash-out, you will need a 'Use of Proceeds' letter of explanation. Provide a copy of the divorce decree if applicable. If you are not a US citizen, provide a copy of your green card (front and back), or if you are NOT a permanent resident provide your H-1 or L-1 visa.
If you are applying for a Home Equity Loan you will need, in addition to the above documents, to provide a copy of your first mortgage note and deed of trust. These items will normally be found in your mortgage closing documents.
Credit Reports: Most people applying for a home mortgage need not worry about the effects of their credit history during the mortgage process. However, you can be better prepared if you get a copy of your Credit Report before you apply for your mortgage. That way, you can take steps to correct any negatives before making your application.
A Credit Profile refers to a consumer credit file, which is made up of various consumer credit reporting agencies. It is a picture of how you paid back the companies you have borrowed money from, or how you have met other financial obligations. There are five categories of information on a credit profile: Identifying Information, Employment Information, Credit Information, Public Record Information, and Inquiries
NOT included on your credit profile is race, religion, health, driving record, criminal record, political preference, or income.
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional who will assist you in writing your 'Letter of Explanation.' Knowledgeable mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness, or other financial difficulties. If you had problems that have been corrected (reestablishment of credit), and your payments have been on time for a year or more, your credit may be considered satisfactory.
The mortgage industry tends to create its own language, and credit rating is no different. BC mortgage lending gets its name from the grading of one's credit based on such things as payment history, amount of debt payments, bankruptcies, equity position, credit scores, etc. Credit scoring is a statistical method of assessing the credit risk of a mortgage application. The score looks at the following items: past delinquencies, derogatory payment behavior, current debt levels, length of credit history, types of credit and number of inquires.
By now, most people have heard of credit scoring. The most common score (now the most common terminology for credit scoring) is called the FICO score. This score was developed by Fair, Isaac and Company, Inc. for the three main credit Bureaus; Equifax (Beacon), Experian (formerly TRW), and Empirica (TransUnion).
FICO scores are simply repository scores meaning they ONLY consider the information contained in a person's credit file. They DO NOT consider a person's income, savings or down payment amount.
Credit scores are based on five factors: 35% of the score is based on payment history, 30% on the amount owed, 15% on how long you have had credit, 10% percent on new credit being sought, and 10% on the types of credit you have. The scores are useful in directing applications to specific loan programs and to set levels of underwriting such as Streamline, Traditional or Second Review. However, they are not the final word regarding the type of program you will qualify for or your interest rate.
Many people in the mortgage business are skeptical about the accuracy of FICO scores. Scoring has only been an integral part of the mortgage process for the past few years (since 1999); however, the FICO scores have been used since the late 1950's by retail merchants, credit card companies, insurance companies and banks for consumer lending. The data from large scoring projects, such as large mortgage portfolios, demonstrate their predictive quality and that the scores do work.
The following items are some of the ways that you can improve your credit score: Pay your bills on time, Keep balances low on credit cards, Limit your credit accounts to what you really need, Check that your credit report information is accurate, Be conservative in applying for credit and make sure that your credit is only checked when necessary.
A borrower with a score of 680 and above is considered an A+ borrower. A loan with this score will be put through an 'automated basic computerized underwriting' system and be completed within minutes. Borrowers in this category qualify for the lowest interest rates and their loan can close in a couple of days.
A score below 680 but above 620 may indicate underwriters will take a closer look in determining potential risk. Supplemental documentation may be required before final approval. Borrowers with this credit score may still obtain 'A' pricing, but the loan may take several days longer to close.
Borrowers with credit scores below 620 are not normally locked into the best rate and terms offered. This loan type usually goes to 'sub-prime' lenders. The loan terms and conditions are less attractive with these loan types and more time is needed to find the borrower the best rates.
All things being equal, when you have derogatory credit, all of the other aspects of the loan need to be in order. Equity, stability, income, documentation, assets, etc. play a larger role in the approval decision. Various combinations are allowed when determining your grade, but the worst-case scenario will push your grade to a lower credit grade. Late mortgage payments and Bankruptcies/Foreclosures are the most important. Credit patterns, such as a high number of recent inquiries or more than a few outstanding loans, may signal a problem. Since an indication of a 'willingness to pay' is important, several late payments in the same time period is better than random.
Appraisal Basics: An appraisal of real estate is the valuation of the rights of ownership. The appraiser must define the rights to be appraised. The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property. Considerable research and collection of data must be completed prior to the appraiser arriving at a final opinion of value.
Using three common approaches, which are all derived from the market, derives the opinion, or estimate of value. The first approach to value is the cost approach. This method derives what it would cost to replace the existing improvements as of the date of the appraisal, less any physical deterioration, functional obsolescence, and economic obsolescence. The second method is the comparison approach, which uses other 'bench mark' properties (comps) of similar size, quality and location that have recently sold to determine value. The income approach is used in the appraisal of rental properties and has little use in the valuation of single family dwellings. This approach provides an objective estimate of what a prudent investor would pay based on the net income the property produces.
Underwriting: Once the processor has put together a complete package with all verifications and documentation, the file is sent to the lender. The underwriter is responsible for determining whether the package is deemed an acceptable loan. If more information is needed, the loan is put into 'suspense' and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable as submitted, the loan is put into an 'approved' status.
Closing: Once the loan is approved, the file is transferred to the closing and funding department. The funding department notifies the broker and closing attorney of the approval and verifies broker and closing fees. The closing attorney then schedules a time for the borrower to sign the loan documentation.
At the closing the borrower should: Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally not accepted and if they are they will delay the closing until the check clears your bank, Review the final loan documents. Make sure that the interest rate and loan terms are what you agreed upon. Also, verify that the names and address on the loan documents are accurate, Sign the loan documents, Bring identification and proof of insurance.
After the documents are signed, the closing attorney returns the documents to the lender who examines them and, if everything is in order, arranges for the funding of the loan. Once the loan has funded, the closing attorney arranges for the mortgage note and deed of trust to be recorded at the county recorders office. Once the mortgage has been recorded, the closing attorney then prints the final settlement costs on the HUD-1 Settlement Form. Final disbursements are then made.
Summation: A typical 'A' mortgage transaction takes between 14-21 business days to complete. With new automated underwriting, this process speeds up greatly. Contact one of our experienced Loan Officers today to discuss your particular mortgage needs or Apply Online and a Loan Officer will promptly get back to you.
Documents to bring when you sit down with a loan officer in Springfield or Joplin
There are a number of documents that you need to compile and bring with you when meeting with your loan officer. Here is a comprehensive list of those documents:
Past two (2) years W-2 statements, Pay Stubs covering the last (30) thirty days, Three most recent monthly bank statements, Most recent transaction summary of 401K, IRA, or Mutual Fund Accounts, Photocopies of any stocks or certificates of deposits, Copy of the purchase and sale agreement, If you are currently renting....either 12 months canceled rent checks or the name and address of your current landlord, If divorced...a fully executed divorce decree, For a refinance...a copy of the deed, and most recent tax bill, A letter of explanation for any known credit problems
For self employed borrowers, employed in sales, paid by commission, or owns rental real estate:
Two (2) years signed personal tax returns - including all schedules, If self-employed through a corporation, last two years corporate returns as well as a year-to-date profit and loss statement and balance sheet
Different programs require varying amounts of documentation. The loan program you select may require more or less documentation. Please contact us for a free, no-obligation consultation.
Southwest Missouri FHA Loan Center Information
It's easy to understand why many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.
The links to the right are articles aimed at helping you better understand FHA loans. With this information you can make a more informed decision on whether these government insured loans are right for you and your family.
In response to the growing housing situation in the United States the loan limits for FHA Loans has been temporarily raised. Depending on where you live you might find it even easier to qualify for a FHA loan.
As FHA Loan specialists we can help you understand any new changes to the FHA loan program. We're here to create a customized solution that works best for you and your family. To learn more call us toll free at 866-626-0271 or use the Contact Us page on our site to send us an email!
Questions Joplin and Springfield people ask about FHA Loans
Check out our list of common questions related to FHA mortgages.
What is the FHA? FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.
What makes a FHA insured mortgage beneficial? A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment.
Where can I find FHA forms and other literature? A great source for FHA forms and information is http://www.hud.gov/library/index.cfm.
What is the FHA loan limit in my area? The loan limit across the country is different. Click here to see limits in your area.
Can I pay an FHA loan off early? Yes, however be sure to check the pre-payment section of your contract before signing.
Can a FHA insured loan help me lower energy costs? Yes, through the Energy Efficient Mortgages Program you can finance 100 percent of the cost of making your home more energy efficient.
Is there a FHA program to help me refinance my loan? Yes, the recently create FHA Secure is one of the ways that we can help you refinance your current home loan. Contact us now to see what we can do for you.
Can I refinance a fixed rate FHA loan? Use our Contact Us page to talk with one of our professionals today to see if refinancing makes sense for you.
What is the recommended debt-to-income ratio for FHA loans? The recommended debt-to-income ratio for a FHA loan is 30%.
Are FHA loans assumable? Absolutely, you can assume an existing FHA loan or allow a buyer to assume yours.
Will I have to pay mortgage insurance with an FHA loan? Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.
Can I get a "fixer-upper" of a home with a FHA mortgage? Yes, however you might be required to fix certain problems in the home before you can get the full loan.
Qualifications for Joplin and Springfield residents to acquire an FHA Loan
Qualifying for a home mortgage loan can be difficult. Without a sizable down payment and a moderate credit report, it can be nearly impossible. If this describes you and you financial position, an FHA loan may be for you!
There are fewer restrictions for FHA loan qualification in comparison to a standard mortgage loan. Qualifications for an FHA loan are: Proven employment status of at least 2 years, Steady or increasing income over a 2 year period, History of on-time payment. No more than two missed payments on your credit, If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed, Those with foreclosures must wait at least 3 years since the most recent foreclosure, You must pay a minimum of a 3.5% down-payment, Only certain properties are eligible: single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties, The property must be your primary residence
These are the basic qualifications for an FHA loan through Mortgage Centers of the Ozarks LLC, as you can see FHA loans can be to qualify for. To learn more, contact us or apply online to get the process started.
The benefits of an FHA Loan for Springfield and Joplin residents
FHA insured mortgages are some of the best kinds of mortgages available. This is because they can help more people into the home buying market. Check out the list below to understand some of the most basic benefits of an FHA mortgage.
Easier to Qualify - because they are backed by the federal government, lenders are more likely to give you the kind of loan that you need.
Low Down Payment – FHA insured mortgages only require a 3% down-payment which makes it easier for people to own homes. Additionally the 3% can come in the form of gifts, unlike many other loan programs.
Lower Credit Borrowers Qualify – because FHA insured loans are backed by the government those with a poor credit history have an easier time getting this kind of loan.
Better Interest Rates – with the backing of the government these loans typically have a better interest rate than most traditional mortgage loans.
Better Home Stability – the FHA has programs designed to help homeowners keep their homes during hard times. The will work with you to help your home from falling into foreclosure. Always try to work out problems with your lender before the situation becomes dire.
How Southwest Missouri FHA Loans Work
At Mortgage Centers of the Ozarks, we want to help you understand how a FHA mortgage loan works. In all actuality, the Federal Housing Administration (FHA) doesn’t loan any money, they insure it. This means that you’re considered to be a less risky borrower than someone who might not have the backing of the federal government. Our role is to make sure that you qualify for an FHA mortgage and structure our loan to reflect it.
The other pages in the FHA loan center can help you understand more about this unique program. Whether you’re trying to determine if you qualify or if you’re interested in finding out what kind of documentation you’ll need to ultimately get your loan, our site can provide you the information you’re seeking. Additionally we are more than happy to take your phone calls at 417-626-0271.
An important resource for considering a FHA loan is the official Housing and Urban Development website. There you can find even more answers to questions and learn more about insuring your loan through the Federal Housing Administration.
For our expertise and customer service, please contact us with any questions you have or to get started on a loan application!
Springfield Branch - 417.882.5544
909 E. Republic Rd. ste. F-200
Springfield, Missouri 65807
Joplin Branch - 417.626-0271
1840 N. Range Line Suite 3
Joplin, Missouri 64801
homeloans@mcozarks.com
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BFR Studios - Recording Studio catering to songwriters in JoplinDixie Printing - Joplin's #1 corporate printing company for over 40 years
Gary Price Insurance - serving Joplin and Webb City auto, home and life insurance needs
Herbs For Life - helping Joplin obtain a healthier lifestyle through herbs and vitamins
Inner Chi Salon - Joplin's only Aveda concept beauty salon
Worden's Meat - Joplin's only USDA inspected daily butcher
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