Bobby Otwell Mortgage Lender

Want to avoid paying interest on your credit card? Here’s a simple tip: Pay your statement balance in full before the due date.

Here's how it works:

Check Your Statement: Find your statement balance and the due date.
Pay in Full: Make sure you pay the full statement balance before the due date.
Avoid Interest: By doing this, you’ll avoid paying interest on your purchases.

Paying off your balance on time not only saves you money but also keeps your credit score healthy. Need more credit tips? I'm here to help!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Buying a home while managing student loan debt can seem overwhelming, but it’s definitely doable! Did you know that nearly 45 million Americans are juggling student loans? You’re not alone, and with some smart strategies, you can achieve your dream of homeownership. Here are some real-life tips to help you balance both:

Check Your Debt-to-Income Ratio: Lenders look at your debt-to-income ratio to see if you can handle a mortgage. Aim to keep it below 43%. Paying down your student loans a bit more can help improve this ratio.

Explore Income-Driven Repayment Plans: If your student loan payments are high, consider switching to an income-driven repayment plan. This can lower your monthly payments, making it easier to qualify for a mortgage.

Boost Your Credit Score: A higher credit score can get you better mortgage rates. Make sure to pay your student loans on time and reduce any credit card debt to boost your score.

Balancing student loans and buying a home is all about smart planning and making informed decisions. If you have any questions or need personalized advice, I'm here to help you every step of the way!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Thinking of becoming a real estate investor? As of June 2023, 27% of all single family home purchases were made by investors. Let’s dive into some pros and cons to help you decide if you’re ready to join the ride!

Pros:

Passive income: Sit back, relax, and let the rent checks roll in!
Appreciation: Over time, your property value may increase, making you wealthier without lifting a finger.
Tax benefits: Uncle Sam loves landlords! Enjoy some tax deductions on your property expenses and mortgage interest.
Cons:

Maintenance & repairs: Leaky faucet? Broken window? Get ready to roll up your sleeves or hire someone to tackle those pesky property issues.
Vacancy risks: No tenants, no income.
Tenant troubles: Not all tenants are a dream come true. Be prepared for late payments or property damage that might test your patience.
With a positive mindset and the willingness to take calculated risks, you’ll be well on your way to building a successful real estate portfolio.

Are you ready to take the plunge into the world of rental property investment?

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Keeping your home in top shape can help make sure that the home inspection process goes smoothly!

Here are the best ways to maintain your home for a squeaky clean report:

Regular Roof Inspections: Check for missing shingles, leaks, and damage to prevent costly repairs.
Maintain Your HVAC System: Change filters regularly and schedule annual professional servicing to keep your system running efficiently.
Check Plumbing: Inspect for leaks, drips, and water stains. Fixing minor issues can prevent bigger problems down the line.
Clean Gutters and Downspouts: Remove debris to prevent water damage and ensure proper drainage.
Test Smoke and Carbon Monoxide Detectors: Ensure these safety devices are working properly by testing them monthly and replacing batteries as needed.

Regular maintenance can make all the difference. Keep your home in tip-top condition and ace that inspection!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Under contract and preparing for a home inspection? It’s an important step in the home buying or selling process. Different from a home appraisal that deals with defining the home's value, a home inspection allows you to get a good idea of the condition that the home is in, and what repairs may be needed.

✔️ Heres what to expect: A home inspector will examine the home’s exterior, interior, and systems, including the roof, foundation, plumbing, electrical, HVAC, and appliances. The inspector will also look for any safety hazards or code violations. A home inspection typically takes between two and four hours.
✔️ Things you can do to prepare: Before the inspection, ensure the home is accessible and ready to be inspected. Remove any stored items that might obstruct the inspector’s view. Make sure the utilities are working and all systems are turned on.

The home inspection report will be completed within a few days after the inspection. The report will include a summary of the inspector’s findings and any recommendations for repairs.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Independence Day is extra special when you have a home to celebrate in. 🇺🇸 Hosting a BBQ in our own backyard and feeling thankful for the freedom and opportunity to own a piece of the American dream. What are your 4th of July plans?

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Got a 30-year mortgage? Ever considered switching to a quicker payoff plan? One strategy we’re discussing with homeowners waiting for rates to drop is refinancing into a shorter loan term, like a 15-year loan, which can have your mortgage wrapped up faster than you can say ‘home sweet home’!

The beauty of shorter mortgage terms? Lower interest rates! That means more savings for you. In mortgage terms, sometimes you need to spend a little to save a lot.

✔️ Contrary to popular myth, a 15-year loan’s monthly payments aren’t double those of a 30-year loan, thanks to those lovely lower interest rates!
✔️ If you’re looking for a Goldilocks situation, there’s a sweet spot right in the middle. Have you ever thought about a 20-year loan? It’s a great balance – manageable monthly payments, lower interest rates, and a faster route to full homeownership!

Curious about discovering more strategies to become mortgage-free sooner? Comment below!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Don't obsess over trying to time the market or figuring out the best time to buy. Anticipating the housing market is impossible. The best time to buy is when you find your perfect home and can afford it. Real estate is cyclical—it goes up, it goes down, and it goes back up again. If you wait for the perfect time, you’ll likely miss out.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

To buy or to rent, that is the question, especially right now with living costs through the roof. If you’re on the fence about whether to buy or rent a home, you’re not alone. It’s a big decision, and there are many factors to consider.

Let’s break it down and figure out if it’s time for you to take the plunge into homeownership:

🏡 Affordability: Can you afford the upfront costs of buying, such as a down payment and closing costs?
🏡 Monthly expenses: Do the monthly costs of owning a home, including mortgage payments, insurance, property taxes, and maintenance, cost less than your current rent?
🏡 Location: Is the area you want to live in appreciating in value, or are home values expected to decline?
🏡 Lifestyle: Do you want the stability and long-term benefits of owning a home, or do you prefer the flexibility of renting?
🏡 Length of stay: Do you plan to stay in the same location for several years, or are you likely to move in the near future?

Evaluate these factors to determine if buying or renting is the best option for your current situation. Remember, home is where the heart is, so make it a place you love.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Wishing all the wonderful dads a day filled with golf, grilling and appreciation. Your hard work and dedication do not go unnoticed. Happy Father’s Day!

Closing costs can be overwhelming when buying a home, but don’t fret! Here’s what you need to know:

🔸 Appraisal fees: Required by most lenders to ensure the home is worth the loan amount.
🔸 Inspection fees: Uncover potential costly repairs before closing.
🔸 Legal fees: Cover title searches, insurance, and representation.
🔸 Lender/Agent fees: This covers all fees associated with doing the loan, and commission paid to the agent (if applicable)

Remember, many closing costs are negotiable. Don’t be afraid to shop around and compare fees from different lenders or service providers. You might be able to negotiate lower fees or find a provider who offers discounts or incentives.
Keep these tips in mind to reduce costs and have a smoother closing process.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Are you tired of cleaning rooms you never use, tripping over clutter, and feeling like you’re rattling around in an oversized home? It might be time to downsize! While it may seem daunting to go from a large home to a smaller one, there are many benefits to this lifestyle change.

🔸 Think of all the money you’ll save on utilities and maintenance!
🔸 More cash in your pocket for hobbies, travel, or whatever else strikes your fancy.
🔸 Declutter and get rid of things you no longer need or use (say goodbye to that ugly vase from Aunt Mildred and hello to a streamlined, clutter-free living space 😉).

But downsizing isn’t just about saving money and getting rid of clutter. It’s also about simplifying your life and focusing on the things that matter most to you.

So, if you’re ready to say goodbye to the excess and hello to a cozier, more manageable lifestyle, it might be time to consider downsizing to a smaller home.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

As we enjoy the freedoms of this great nation this weekend and every day, we remember those who have fought and fallen for our liberty. Thank you for your service and sacrifice. Have a great and safe Memorial Day Weekend!

Helping clients navigate their journey while saving them money and earning their trust is what makes my job so rewarding. Thank you for letting me be a part of your story!

I just got off the phone with a potential borrower and we were chatting about the costs involved with getting a home loan. We immediately jumped to the topic of inspections vs. appraisals and which is needed.

While I'll typically ALWAYS recommend a home inspection, it's not required. However, a property appraisal is required to receive a home loan (exceptions can be made for certain conventional loans where an appraisal waiver is involved.)

A property appraisal is an expert assessment of a home's value conducted by a licensed appraiser. Here’s why it's crucial during the mortgage process:

1️⃣ Loan Approval: Lenders use the appraised value to determine how much they can safely lend you. If the appraisal comes in lower than the purchase price, you might need to renegotiate the deal or increase your down payment.

2️⃣ Fair Pricing: It ensures you’re paying a fair price for your home based on current market conditions.

3️⃣ Refinancing: For those looking to refinance, an appraisal helps the lender decide on the new loan amount.

Understanding the role of appraisals can help you understand the home buying or refinancing process more effectively. Have any questions about how this could affect your next move? Let’s chat!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Here's to the women who raised us, cherished us, and taught us everything we know. Happy Mother's Day!

Exciting News for First-Time Homebuyers! 🌟 Fannie Mae and Freddie Mac are now offering a $2,500 credit through their HomeReady® and Home Possible® programs to assist very low-income buyers. This financial boost can make a significant difference in covering your down payment and closing costs.

Interested in learning how this could bring you closer to homeownership? Contact me today! This offer is available for loans closed between March 1, 2024, and February 28, 2025.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Closing out the blueprint to buying your first home, and this one is a important one!

You've got your pre-approval, you've researched loan programs and know which route you're taking, and you've connected with a Realtor who is going to help you find that dream home. My biggest piece of advice is to build a strong relationship with your real estate agent. A great agent is more than just a door opener; they're your advocate, advisor, and confidant throughout the home buying process. They understand your needs, negotiate on your behalf, and can spot potential issues with properties that you might miss. Find someone who truly gets you and your home dreams. This partnership can make all the difference in finding your perfect first home.

When you're ready to follow the homebuying steps and take a leap, I'm here to help!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Picking back up after last week's post, this week I want to share insights about home loans!

Knowledge really is power, especially when it comes to finding the right loan for you. Explore government and first-time homebuyer programs! Once you find a good fit, take the time to soak in all the knowledge from your LO (loan officer)- they are your advocate and partner throughout this experience, so lean on them! This is a great time to talk about funds needed to actually close the home loan - I’d try to begin saving for more than just the down payment. Closing costs, moving expenses, and immediate home repairs can sneak up on you, and you want to be prepared! When homebuying becomes your top priority, you'd be surprised how much money you can save by cutting back on un-needed expenses. Finally, if you've made it this far, it's time to find a real estate agent who understand your goals. I work with some great Realtors who I would be happy to recommend!

Together, we can make your dream home a reality - reach out if you have any questions about this next tip!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

What does the blueprint to your first home look like? If you're scratching your head, that's ok - I'm here to help!

Over the next 3 weeks, I'm going to be providing my favorite tips (things I would actually do) to buying your first home.

If I were buying my first home, step one would be getting my financial ducks in a row. I'd start by checking my credit score because it’s like a golden ticket in the world of mortgages. I'd sit down and create a budget that includes not just the mortgage, but insurance, taxes, and those little surprises homeownership loves to throw at you. I can't stress to you enough how important it it so have a budget - I love seeing stuff on paper and this was truly a game changer when I was going to purchase my first home. The last piece of this first step is to get pre-approved. It puts you in the driver's seat - telling you exactly how much you can borrow and it shows sellers you mean business when the time comes to making an offer.

Ready to dive in? Let's map out your path to homeownership together!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Whew, we made it through April Fools’ Day! It's a great reminder not to take life too seriously and to embrace the unexpected. Now that we've had our laughs and maybe fell for a prank or two, it's back to reality.

A new month is here and I'm ready to help you reach your homeownership goals! Remember, if you have any home buying, selling, or financing questions, today is definitely no joke – I'm here to help, no pranks attached!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Since we've talking a bit about credit scores, I thought it would be good to address ways to improve your credit score for a better mortgage rate!

Here are some tips to improve your credit score for a better mortgage rate:

1. Pay Bills on Time: Make all your payments, including credit cards, loans, and utilities, on time to establish a positive payment history.
2. Reduce Credit Card Balances: Keep your credit card balances low compared to their limits to lower your credit utilization ratio, which can positively impact your score.
3. Minimize New Credit Applications: Limit new credit applications as multiple inquiries can temporarily lower your score. Apply for new credit only when necessary.
4. Maintain Long-Term Credit Accounts: Lengthy credit history demonstrates responsible credit management. Keep older, well-managed accounts open to boost your credit age.
5. Monitor Credit Reports: Regularly review your credit reports to identify errors or fraudulent activity. Dispute inaccuracies promptly to ensure accurate reporting.
6. Diversify Credit Mix: Maintain a mix of credit types (e.g., credit cards, loans) to show your ability to handle different types of debt responsibly.
7. Avoid Closing Credit Accounts: Closing accounts can affect your credit utilization and average credit age negatively. Keep accounts open unless necessary.
8. Work with Creditors: If you face financial difficulties, contact your creditors to explore payment arrangements or debt consolidation options. Responsible credit management can help rebuild your score.

Remember, improving your credit score takes time and discipline. Consult with a financial advisor or credit counseling service for personalized guidance based on your situation!

Reach out for any credit questions or help!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

The average American has a credit card balance of $6,501, an all-time high, according to Experian, up from $5,221 in 2022. Partially caused by high inflation and high interest rates on credit cards themselves.

I know we've talked about credit in the past, but I wanted to make sure I touched on some of the basics again for those who need a refresher. One of the biggest things to keep in mind is what exactly makes up your credit score. Let's break it down.

👉 Payment History (35%): The top influencer of your credit score! It reflects how punctually you've repaid debts. Any late or missed payments can hurt this portion of your score significantly.

👉 Amounts Owed (30%): Also known as your credit utilization ratio, this measures the credit you're using against your total available credit. Aim to keep your usage low; for instance, on a $1,000 limit, strive to maintain a balance under $300. High utilization suggests dependency on credit, which can lower your score over time.

👉 Length of Credit History (15%): This considers the duration you've been active with credit. A more extended history, marked by on-time payments, tends to boost your score.

👉 New Credit (10%): Focuses on the number of new accounts you've recently opened. It's wise to avoid opening new credit lines during critical financial processes like mortgage applications, as this can be viewed as risky behavior and potentially drop your score.

👉 Credit Mix (10%): Looks at the diversity of your credit accounts, including credit cards, loans, mortgages, etc. A varied credit portfolio can positively affect your score.

If you're trying to buy a home, use your credit sparingly if you know you're someone who is carrying higher balances, and try to pay down debt as often as you can! If you want some tips or advice on credit, I'm your guy.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Let's say you're pre-approved and you've got the loan estimate in your hand, but you're wondering what fees might be associated with the loan?

These fees, while they might seem small at first, could impact the total cost of owning your dream home - but don't worry! Let's talk through some of the common fees you might come across during the process

Application Fee: Think of this as the cost for the lender to kickstart your application process. It varies widely but expect anything from a couple of hundred to over a thousand dollars.

Appraisal Fee: This one's for bringing in an expert to peg the value of your home. A few hundred dollars is the norm here.

Title Insurance: This is your safety net against any legal snags with your property's title, safeguarding both you and the lender. Costs fluctuate based on the property's value.

Origination Fee: Covering the lender's back-office work—think underwriting and processing. It's a slice of your loan amount, typically between 0.5% and 1%.

Points: This shouldn't be applied to your loan cost UNLESS you've talked about it with your lender and you're OK with it. Paying points upfront can reduce your interest rate, with each point equaling 1% of your loan amount.

Closing Costs: The finale of your home purchase, including legal fees, title searches, and transfer taxes. These can be anywhere from 2% to 5% of your loan amount.

Getting a grip on these fees will not only prepare you for the journey ahead but also gives you a good idea of what to expect when you're ready to sign at closing! Don't hesitate to ask your lender for a detailed fee breakdown—it's your right to know! As always, reach out if you have any questions or want to look at numbers!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

Wondering whether to chuck a bit extra at your mortgage each month or dive into refinancing? It's a big decision that can really shake up your finances. Here’s a quick breakdown to help you figure out what's best for you.

Making Extra Payments: This one's a no-brainer if you want to cut down your loan time and save on interest without messing with your current rate. Plus, it's super flexible.

Refinancing: Going this route can snag you a lower interest rate or change up your loan term. Rates are expected to drop sometime later in the year, so if you bought recently at a higher rate, you could seriously benefit from refinancing when the time is right. It could mean lower monthly bills and less interest over time, but remember, there are usually closing costs.

What's Your Endgame? Think about what you're really after and how long you plan to stay in your home. This is key! There's no reason to spend money when you're going to sell in the near future.

So, extra payments or refinancing? It all boils down to your financial goals and situation. I'm happy to chat with you about which path lights the way to your financial freedom!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

If you've been dreaming of your perfect home, let’s talk must-haves. Making a list of your ideal home features isn’t just a fun part of the home buying process, it’s super practical. It helps you zero in on what you actually want and helps to align your vision with your budget.

So, what tops your home wishlist?

✔️ A spacious walk-in closet for your sneaker collection?
✔️ An open kitchen where you can cook and watch the game at the same time?
✔️ Or maybe a dedicated outdoor area to roast a mallow or two?

Let me know your non-negotiable features. And if you’re diving into the world of mortgages, considering refinancing, or just wondering what your dream home budget looks like send me a message and I’ll be your navigator!

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com

I was so awesome working with Jacqueline on her refinance! I hope we get to work together again in the future 👏

Are you in the process of buying your first home? Let's talk about 5 things you should know before you do! Comin' at you with my last tip!

Choosing to buy a home instead of renting might better suit your lifestyle if you're seeking stability, long-term investment, and the freedom to personalize your space. It's a fit for those ready to settle down and looking for the financial and personal benefits of homeownership.

Remember, homeownership is a journey filled with both predictable and unforeseen events, and being emotionally resilient will empower you to make sound decisions and enjoy the rewards of your investment over time.

Bobby Otwell | Loan Officer
M: 417-259-1274 | W: botwell.gershman.com