4 Myths About Buying A House

By Fran Campbell - January 27, 2016

It's no secret that real estate is an integral part of American culture. Almost everyone will buy or sell a house at some point in their lives. Despite its incredible pervasiveness in modern society, however, there are many myths surrounding real estate. This week, our real estate agents at the Lake of the Ozarks are here to dispel some of the common myths about our industry. This week, we're going to look specifically at myths about buying a house. (See our blog next week for myths about selling a house.)

MYTH #1:
You Should Never Buy The First House You Tour
If you've ever been shopping for homes at the Lake of the Ozarks, you probably had at least one person tell you that you should not buy the first house you see. However, we have worked with several buyers who chose to purchase the first house they ever toured, and couldn't be happier. The key is to never purchase a house without looking at a few others first. There are so many different types of homes available, it may be hard to know exactly what you want until exposing yourself to a few different styles and options. If you have looked at multiple homes and decided none were as great as the very first one, however, there is no reason not to go back and buy it!

MYTH #2:
You Should Wait On Pre-Approval Until After You Find Your Dream Home
Many buyers have heard that they should talk to a lender before beginning the home search, so many take the initiative and get prequalified. Prequalification is relatively quick and easy, so it is a simple step for buyers to take. Pre-approval is a little bit more involved, as buyers have to provide copies of their tax returns, bank statements, pay stubs, and other documents that allow lenders to get a better understanding of their financial situation. As a result, many buyers are tempted to wait until they find their dream home before starting this process. However, being pre-approved gives you a lot more credibility as a buyer, and can help the negotiation process go much more quickly. If you are serious about buying a home in the near future, w.,me recommend going ahead and starting the pre-approval process now.

MYTH #3:
You Should Start With A Low Offer And Work Your Way Up From There
As the buyer, you're probably looking to secure the lowest possible price for your new home. While this is understandable, we caution our clients against submitting an initial offer with a very low price. Sellers are hoping to get good prices for their homes, and they may have emotional attachments to their properties that make them reluctant to sell for lower prices. Submitting an offer that is too low may actually offend the sellers, which can make them more reluctant to work with you (if they even choose to work with you at all). Plus, submitting a low offer at first will typically result in a longer negotiation process, which can give other buyers time to submit their own offers for the property.

MYTH#4:
You Have To Have A 20% Down Payment
Most conventional loans require a 20% down payment, and it used to be incredibly hard (if not impossible) for buyers to purchase a house at the Lake of the Ozarks with anything less. However, there are several different loan options available to buyers now that make it possible to purchase homes with much smaller down payments, sometimes as low as 5% or 3%. In some cases, if they qualify for USDA or VA loans, buyers may even be able to purchase home for 0% down. Before jumping to assumptions, we encourage you to talk to a lender who can help you realistically evaluate your options.

Ready To Find Your Dream Home At The Lake? We Can Help!

If you've been thinking about buying a house at the Lake of the Ozarks, Fran Campbell Team is here to help you take the plunge! Our experienced buyers agents in Lake Ozark MO have the skill and the expertise required to successfully navigate the process. We look forward to helping you!

Contact the Fran Campbell Team to schedule a showing!