FACTS VS FICTION - Buying A Home

By Fran Campbell - August 18, 2015

Buying a house - whether it's your first time or your tenth time, attending to all the little details can feel a little overwhelming. People are always quick to offer lots of advice about buying real estate at the Lake of the Ozarks, but how can you distinguish which messages are ones you should pay attention to and which ones you can ignore? In this blog post, Fran Campbell Team is here to help you make the distinction.

FICTION: Buying A House Should Be A Purely Intellectual Process.
FACT: Reasoning Through Things Is Important, But You Should Not Discount Your Emotions.
Choosing which home you wish to purchase is a big decision. It's a major financial investment, for one thing, and moving to a new home can be a lot of work. Before you decide which home to buy, you'll want to be confident that you are choosing the right one. It is important to step back and evaluate the home from a logical, objective perspective, but your emotions will also offer valuable insight. Can you imagine waking up there every day? How do you feel when you picture yourself driving to that home after a long day at work? A house could make perfect sense logically, but if it doesn't feel right, you should keep looking.

FICTION: The Seller's Asking Price Is How Much You Will Pay For The Home.
FACT: The Amount You Will Pay For The Home Depends On Your Negotiation Process.
The seller's asking price is just a starting point; the actual amount you will pay for the home can vary greatly depending on several different factors. If there are not any other buyers interested in the property, the seller may accept an offer with a lower price in order to get the home off of their hands. If there are multiple buyers who want the home, however, the buyers may engage in a bidding war and drive the sale price higher than the original asking price. Your Lake of the Ozarks real estate agent will be able to coach you on what price you should offer to begin the negotiation process.

FICTION: I Don't Need To Shop Mortgage Loans - I know A 30-Year Fixed Loans Are The Best.
FACT: There Is No "Best" Type Of Mortgage Loan.
There are tons of different types of mortgage loans available. Some loans have a fixed rate, which means that the interest rate will be consistent throughout the duration of the loan. Others have an adjustable rate, which means the interest rate may be consistent for the first few years and then it will adjust to match the current market. Some loans last for fifteen years, some last for twenty, and some for thirty. Some loans offer special incentives or perks for people who meet specific criteria. Automatically assuming you know which type of loan will be best for you is flawed thinking - you should speak with a mortgage loan professional to determine which type of loan will be best for your current situation.

FICTION: I Have To Have A 20% Down Payment.
FACT: Different Types Of Loans Require Different Down Payments.
A 20% down payment is historically typical (and can still be a great option for home buyers who can afford it), but it is certainly not set in stone. Fannie Mae & Freddie Mac are advertising loans with down payment options as low as 5% and 3%, and some types of mortgage loans (such as VA loans and USDA loans) even offer a 0% down option for buyers who meet specific criteria. While low down payment options may seem like the best choice upfront, it is important to remember that money you don't put down now is money you will have to pay back later (with interest). Your mortgage lender will be able to help you strategize what will be smart down payment for your specific situation.

FICTION: I Can Save Money By Renting Now And Waiting To Buy.
FACT: Owning A Home Is Actually CHEAPER Than Renting.
Many first-time buyers assume that they should wait to buy because they can save money by renting, but studies are consistently showing that it is actually cheaper to own a home than it is to rent one. Your monthly rent payment could increase every time you renew your lease, and the money you pay to your landlord is money you'll never see again. If you have a fixed-rate mortgage, on the other hand, your monthly payment will be consistent throughout the duration of your loan. Not only that, but when you make a mortgage payment, a portion of that payment goes towards building equity - money you will be able to get back at a later date.

Contact Fran Campbell Team For Help Buying A Home
Buying a house at the Lake of the Ozarks could be easier than you think! Our team of experienced real estate agents at the Lake of the Ozarks would be happy to answer any questions you may have about real estate and the home buying process.

Contact the Fran Campbell Team to schedule a showing!