Get Financially Prepared to Purchase a Home

Often times, people who are considering buying their first home can be overwhelmed by the myriad of financing options available. Fortunately, by taking the time to research financing options, homeowners can save a significant amount of time and money. Buyers should also take a look at their own finances to ensure they are getting the mortgage that best suits their needs. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.


Get Pre-Approved
Without knowing roughly how much you're eligible to qualify for a mortgage loan, you’ll probably be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses outside of your price range. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose Your Mortgage Carefully 
While getting your home loan paid off early may sound like the best way to go, it's a good idea to consider ahead if it's better for your financial situation to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time, taking the points will save you money.

Do Your Homework Before Bidding 
Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.

If you're looking to find a home mortgage for the first time, there are a few things that can be done to reduce the difficulty of sorting through all the financing options. The best approach is to put some time into deciding how much home you can actually afford and then finance accordingly. When you work with the best real estate team at the Lake of the Ozarks, Team Andy Gibson, you'll have a team of agents to recommend local mortgage lenders to speak with and to help guide you through the process of buying a home at the Lake of the Ozarks. Team Andy Gibson is excited about your decision to buy a home at the Lake of the Ozarks, and we would love to discuss what we can do to help your real estate transaction go as smoothly as possible!


Keller Williams Lake of the Ozarks Realty
858 Hwy 42
Osage Beach, MO 65065 
573-286-5907 Cell
573-348-9898 Office
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