Advice for Dealing with Financing BEFORE Buying a Home

One of the most important things to consider when buying a home at the Lake of the Ozarks is the financing aspect. Your home buying process literally depends on this. If you don't have your financial ducks in a row and don't understand the many aspects of financing, you may not be able to buy a home at the Lake of the Ozarks. OR, you may end up paying more than you would have had you proactively educated yourself prior to purchasing. The Fran Campbell Team has some stellar advice on how you can protect yourself and make smart decisions when dealing with financing for purchasing a home at the Lake of the Ozarks - take a look!

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.

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 is 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.

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 sales price and prevent you from overpaying.

With this helpful advice and the best real estate team at the Lake of the Ozarks to guide you through the home buying process, you'll be on your way to closing on the home of your dreams in no time. While much of this financing stuff can be overwhelming, our team of experts can help to guide you in the right direction for getting the answers you need for your financing questions. While we are not experts in mortgage financing, we ARE experts in looking out for our clients best interest and making sure our clients needs are met. For all of your Lake of the Ozarks real estate needs contact the Fran Campbell Team today - lets get you in your new home!


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