Advice for Squaring Away your Financing BEFORE Your Home Search

By Fran Campbell - June 05, 2019

It may seem logical that the most important part of buying a home at the Lake of the Ozarks is finding the home itself. However, it's important to not get ahead of yourself and secure your finances before you start looking for a home. If you don't have your finances in order before you start looking, you risk making a rushed decision on your mortgage which could cost you a higher interest or you may find your dream home and not be able to make an offer because you don't have your finances squared away. Read on to get some advice from the Fran Campbell Team for dealing with your finances for purchasing a home at the Lake of the Ozarks.

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 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.

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.

With a little pre-planning and advice from our expert real estate agents at the Lake of the Ozarks, you will be on your way to closing your Lake of the Ozarks home in no time! While we are not experts in mortgage financing, we ARE experts in looking out for our clients best interest and making sure our client's needs are met. For all of your real estate needs, contact the Fran Campbell Team!

Contact the Fran Campbell Team to get your home SOLD!