Buying a home is an exciting endeavor, especially when you're buying a home at Lake of the Ozarks! However, amongst all the excitement to find and close on that new home, it's important to remain diligent to avoid common home buying mistakes. In this week's blog, your premier mortgage lender at Lake of the Ozarks is here to share a few of these common mishaps and how you can avoid them. Read on to learn more!
#1. Underestimating the Cost of Homeownership
The first and one of the largest errors many new home buyers make is underestimating the true cost of owning a home. When you pay your landlord rent, it could be including other fees that come from responsibilities the landlord also takes care of regarding the property. Responsibilities such as homeowner's insurance, real estate taxes, the cost of home maintenance and repairs, etc. When estimating your budget for homeownership, be thorough. Account for all required obligations, as well as building a reserve for the unknown factors of owning a home.
#2. Emptying Reserve Accounts
These accounts are relative to error number one, those unforeseen costs for repairs and maintenance are going to require some cash on hand. So, ensuring that you're not buying a home that is too costly, thus depleting your cash reserves, is an important step in the home buying process. While you may be able to afford the down payment and closing costs with your savings, leave a little bit left stored away for the inevitable "rainy day."
#3. Not Utilizing Local Real Estate Agents
Know the area that you are buying in, or at least familiarize yourself with it. That is easier said than done when you try to tackle the challenge yourself. However, utilizing a local real estate agent can provide you with valuable insights into the neighborhoods your shopping in, as well as being an essential partner in finding, negotiating, and recommending other professionals throughout the home buying process.
#4. Applying for Additional Credit During the Mortgage Process
Between the time you've applied for a mortgage loan, to the time that you close on your new home, it is vital that you refrain from applying for any new lines of credit. Doing so could potentially jeopardize the approval of your home loan at Lake of the Ozarks. Any adverse changes to your credit situation during the process could complicate your ability to obtain a mortgage or even disqualify you from obtaining one at all. So, leave the credit card, furniture, vehicle/boat loans on hold until after your closing.
As the best mortgage lender at Lake of the Ozarks, Team Lasson is here to help you every step of the way. It is my goal to ensure you have the utmost experience when financing a home at Lake of the Ozarks. I hope that you have found valuable information during your read, and if you have any mortgage questions, give me a call!