Whether or not you can afford a monthly mortgage payment isn't the only expense to consider. Along with homeownership comes added expenses you don't have as a renter. Expenses you'll need to consider include: property insurance, taxes, homeowner's association dues, maintenance and higher electric and water bills. By adding the costs onto the initial monthly mortgage payment, you'll better be able to understand the true cost of homeownership and see if it makes sense for you.
2. Choosing Not to Enlist Professional Help.
While searching for a new home may seem like something you can do on your own, you really should consider consulting the experts. Especially if you're new to homebuying, you'll need a reputable real estate agent, a good loan officer and possibly a lawyer. When choosing who to work with, be sure to get references. As a first-time homebuyer, you may have difficulty knowing who you can trust with such a big investment. Make sure to do some research first, and if you have a mortgage lender you know you can trust, ask him or her for recommendations on a real estate agent and vice versa.
The journey of purchasing a home is exciting. However, it's easy to get caught up in the whirlwind of excitement that goes along with finding your dream home. Before you start searching for a home, talk with your Lake of the Ozarks mortgage lender about getting a pre-approval. This not only helps you understand what you qualify for, but also what price range you can afford. By starting with a pre-approval, you'll avoid making an emotional decision over a financial one.
4. Draining Your Savings to Make a Downpayment.
One of the biggest mistakes first-time homebuyers make is draining their savings account to come up with the downpayment and closing costs. While putting down 20% so you don't have to pay private mortgage insurance may seem like a great idea, depleting your entire savings is risky. Keep in mind those expenses from before, as well as the possibility of an emergency situation arising, and you'll want to make sure you have some cash in savings to cover those types of things.
Now that you know what NOT to do when purchasing your first home, it's time to get started. As mentioned above, the first step is to meet with a trusted mortgage professional at the Lake of the Ozarks. I'm here to work with you every step of the way. I'll discuss financing options, offer competitive rates and back it up with the first class service you deserve. Call 573-746-7211 to start the pre-approval process today!
For Lake area news, resources and tips on financial services, please
Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
Cell: (573) 216-7258
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.