Bad Mortgage Advice Homeowners Actually Believe

As a new homeowner, there are a lot of things you're going to have to learn. One of those things is your mortgage. Unfortunately, there are a lot of misconceptions floating around about mortgages. Today's blog from your favorite Lake of the Ozarks mortgage lender discusses some of the bad advice you might hear about getting a mortgage.

1. Don't Bother Getting a Mortgage Pre-Approval. 

You might have heard that a pre-approval isn't really important. People will say a pre-approval isn't "real" and doesn't guarantee you a mortgage. They will say that if you've only just begun looking for a home, it isn't necessary to worry about the mortgage part of things just yet. Unfortunately, that's bad advice. While a pre-approval might not be "official," it can prevent problems down the road. By getting a pre-approval, you'll know how much you can qualify for, and then you can just look at homes in that price range. A pre-approval also gives you a leg up if you find a property and are competing with other buyers that haven't even started the mortgage process yet. A pre-approval tells sellers and real estate agents that you're serious about buying a home.

2. Always Go with the Lowest Interest Rate. 

While obtaining the lowest interest rate possible may seem like great advice, the interest rate isn't the only thing you should be concerned with. You need to take into consideration other associated fees. Each mortgage lender at the Lake of the Ozarks can charge different fees for their services, and this could affect your overall payment amount. You also need to understand that while an adjustable-rate mortgage may give you the best interest rate to begin with, those rates change with the market and could go up significantly. It's important that you take everything into careful consideration instead of just focusing on the interest rate itself.

3. Borrow the Maximum Amount You're Approved For. 

Who doesn't want the biggest and best house they can qualify for? You got approved for the loan, so why not use it all, right? Wrong. It's always best to live just under your means; you never know when life will throw you a curve ball of expenses. You could experience a layoff or medical issues. If you're spending everything you have on your mortgage, there's nothing left for emergency expenses. This can easily cause you to default on your loan and could even result in foreclosure. Be sure to come up with a budget and don't purchase a house with a payment that you're not comfortable making.

If you're thinking about purchasing a home at the Lake of the Ozarks, your first step should be to talk to a mortgage professional like me. As your lender, I'll work with you every step of the way, making sure to give you the best advice for your unique situation. Give me a call at 573-746-7211 to get started on your Lake of the Ozarks home financing today!

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.