Steps to Prepare for a Home Purchase

The process of preparing to buy a home at the Lake of the Ozarks can be daunting. From coming up with a down payment to filling out all the paperwork, you've got a lot on your mind. Today's blog breaks down the process of preparing for a home purchase into manageable steps. As your Lake of the Ozarks mortgage lender, I'm here to help you every step of the way!

1. Improve Your Credit Score.

Your credit score has a big impact on your mortgage approval and the interest rates that you can qualify for. If you're thinking about buying a home in the near future, now's the time to take a look at your credit score and see if there's any room for improvement. Not only do you want to look at the credit score, but take a look at your credit report to check for any errors. You want to make sure that your score isn't being penalized for old, paid or settled debts. Maintain a good credit score by ensuring your pay all your bills as agreed or in full and on time. In addition, stop applying for new credit accounts one year before you apply for a mortgage, and don't make any large purchases before closing on your home.

2. Save for a Down Payment. 

One of the most difficult steps in preparing to purchase a home is saving for the down payment. While there are programs available to assist with the down payment, you will get a better interest rate if you have some money to put down. Plus, anything less than a 20% down payment will require you to pay Private Mortgage Insurance. Talk to a mortgage professional at the Lake of the Ozarks to discuss your options.

3. Get a Mortgage Pre-Approval. 

The sooner you talk with a local lender the better! Before you even start looking at homes to buy, you'll want to get a Lake of the Ozarks mortgage pre-approval. This pre-approval will help you determine how much you can afford in a home. Work with your lender to determine the best budget for your unique situation. You want to make sure that your mortgage payment is something that you can comfortably afford. Once you have a price range in mind, you'll be able to start looking at homes that fit your budget. In addition, having a mortgage pre-approval presents you as a serious, qualified buyer, which both realtors and sellers want to work with.

4. Build a Healthy Savings Account.

When preparing to become a home owner, the down payment and closing costs aren't the only expenses you need to be concerned with. It's important that you start building a healthy savings account. It is good to show that you're not living paycheck to paycheck. Having several months' worth of mortgage payments set aside also makes you a better candidate for a mortgage loan at the Lake of the Ozarks. You don't want to spend all the cash that you have on your down payment and closing costs. You need to have some extra money set aside to cover maintenance and repairs of the home.

5. Interview Real Estate Agents. 

Once you've got your finances in order, it's time to start interviewing real estate agents. Having a knowledgeable real estate agent is an important factor in purchasing a home. You want to find an agent that you can trust, knows the area and someone that has your best interests in mind. A good real estate agent is going to help you find the perfect home for your needs, will be there to help you through the negotiating process and see it through to the end of closing on your new home. Your real estate agent will work together with you and your lender to ensure a smooth buying process.

Buying your first home is an exciting process, but following these steps can help you stay organized and on track, resulting in a successful home buying experience. As your mortgage lender at the Lake of the Ozarks, I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve. Give us a call at 573-746-7211 to start discussing your Lake of the Ozarks home financing needs today!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

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.