4 Myths About the Home Buying Process

By Fran Campbell - September 14, 2018

Buying a home at the Lake of the Ozarks is a big step, especially if it's your first time. If you have conducted any research at all, including reading articles and what family and friends have told you, you have probably received a lot of advice for buying a home. Even if it isn't your first time, as soon as you say you are ready to buy a home, you will start hear a lot of advice and often there are some discrepancies in the real estate industry. This week, our team of real estate agents at the Lake of the Ozarks are here to clear the air and debunk four myths about buying a home.

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, we 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 long 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 a home for 0% down. Before jumping to assumptions, we encourage you to talk to a lender who can help you realistically evaluate your options.

The process of buying real estate at the of the Ozarks can be tricky. You shouldn't go at it alone and that's where we come in! You want an experienced real estate agent at the Lake of the Ozarks by your side to help navigate and give advice for your next real estate transaction. Fran Campbell has 29 years of experience as a Lake a Lake area Realtor® and offers the skills and expertise to successfully complete your real estate transaction! We can't wait to help you find your dream property at the Lake of the Ozarks!

Contact the Fran Campbell Team to schedule a showing!