3 Tips for Financing Your Next Home

There is a lot to consider when buying a home at the Lake of Ozarks. We find that it's easy to get sidetracked with the excitement of buying a home that taking care of financing first sometimes gets overlooked - especially for first time home buyers. Most people do not have the cash on hand to buy a home outright, so financing is a huge piece of the puzzle when it comes to the real estate process. That's why today, our team of real estate agents at the Lake of the Ozarks from the Fran Campbell Team have some advice to consider to help make smart decisions when it comes to financing your next Lake of the Ozarks home.

1) Do Research on Mortgage Lending

Not all mortgages are the same. First of all, you need to check mortgage rates and gather a few rate quotes. You also need to interview at least a few mortgage lenders to ensure that the mortgage and services they're offering are suitable for you. Ask questions before moving forward. Some mortgage lenders may be delayed in processing due to high volumes of clients they are serving. If this is the case, processing your loan may take longer, so make sure to ask about turnaround time. Another important question to ask is who will be servicing the loan. Many lenders often sell loans to 3rd party investors making it more difficult to get personalized service when you have questions or problems. While a lot of times, this is the reason why they can offer such low rates, you may forego good service experience.

2) Get Pre-Approved

The last thing you want to do is fall in love with a home that you can't afford. That's why it's so important to know what your budget is before you start looking at homes. You can avoid a lot of wasted time and energy by getting pre-approved so you have an idea of what lenders will loan to you. This will help you and your agent pinpoint homes within your budget and get you into your new home more quickly. Don't forget that a pre-qualification is NOT the same thing as a pre-approval. Many lenders will send out pre-qualified letters to entice potential clients. However, a pre-qualification is just a precursory review of your finances. It does not take into consideration much of what lenders actually look for when processing a mortgage application. A pre-approval from a lender is based on your actual income, debt and credit history.

3) Do Your Homework on the Market

Before making an offer on a home, you need to do some research on recent sale trends on similar homes in the neighborhood. A good time frame to look back on would be about 6 months. For example, if similar homes in the neighborhood have sold recently for 5 percent less than the price the home you're looking at is listed for, you may want to consider offering 8-10 percent less than the listed price. Knowing the market and having knowledge of the neighborhood will help you with negotiating the sales price and prevent you from overpaying.

Have a Trusted Real Estate Agent to Help! 

While a real estate agent can't grant you a loan for your home they can offer up advice and referrals for mortgage lenders that they trust and have had good experiences with. When you hire Fran Campbell Team to help you buy a home at the Lake of the Ozarks we will help you every step of the way to help with a smooth buying experience. When you are ready to invest in your own piece of real estate, reach out to the best real estate agents at the Lake of the Ozarks, Fran Campbell Team! 


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