Common Home Buying Pitfalls to Avoid

Buying a home is an exciting time in the life of many, even if it is not your first home purchase. Our Lake of the Ozarks real estate agents know how important it is to find the perfect home for you and your family. As you start your home search near the Lake of the Ozarks, we want you to be aware of some common pitfalls that go hand-in-hand with buying a home.

Waiting to Get Pre-Approved

The pre-approval process does not take long, but it could lead to a homeowner missing out on making an offer on a hot property. It's best to get pre-approval BEFORE you even start looking at homes. This process helps you know exactly how much you can afford in a home and lets you and your REALTOR® know what price range to search within. Once it comes time to make an offer, a pre-approval letter can help you seem like a more serious buyer to the home seller.

Maxing Out Your Budget

When you do establish a budge for your home search, it's important to keep all of your expenses in check. Many homeowners will find a property at the top of their price range. While this is still within your price range, it can limit your budget for other life expenses.

Too Many Advice Outlets

When buying a home, family, friends, and real estate professionals all try to give their best advice for you to follow in the process. The tricky part is when all of these sources of advise start to contradict each other. Take a step back and really listen to the few sources that you fully trust, when searching for the perfect home for you and your family.

Skipping the Inspection Process

Some loans to not require a home inspection to be completed. While it may not be necessary for your financial source, it's a good idea to pay for an inspection of a property that you wish to purchase. A professional inspector can help to point out structural issues, that you may not even be aware of in a home. It's best to get an inspection to know exactly what the home you are interested in needs to be a safe place for you to live.

Getting Attached to a Home

It's great to find a home that you truly like, but getting your heart set on a certain property early in the process can be frustrating. You never know what will happen with the home - whether it doesn't pass inspection or the seller won't come off the asking price - try to stay positive during your home search and find the right home that is meant to be for you and your family.

Now that you know some of the most common pitfalls, you can work to avoid them when it comes time to search for your dream home. Steer clear of these home buying pitfalls when buying a home at the Lake of the Ozarks. If you are ready to jump into homeownership, contact Eagle's Nest Realty today. We look forward to helping you through the home buying process and help you reach your dreams of homeownership.

Call (573) 374-0769 to schedule a showing today!

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FAQs When Buying a Home

When buying a home, especially if you’re a first-time homebuyer at the Lake of the Ozarks, you probably have a lot of questions. Today’s blog from your favorite real estate team at the Lake of the Ozarks offers some insight into some of the most frequently asked questions about home buying.

1. Should I Talk to a Lender Before Looking for a House?

Answer: The answer is yes! The first step in the home buying process is to talk to a mortgage lender and get a mortgage pre-approval. Not only does a pre-approval help you determine how much you can afford in a home, but you’ll also be one step ahead of other buyers. Having a pre-approval tells both your REALTOR® and the seller that you are serious about purchasing a home at the Lake of the Ozarks.

2. Do I Really Need a REALTOR® When Buying a Home?

Answer: While many people feel they can cut costs by not hiring a Lake of the Ozarks REALTOR®, that’s usually never the case. Local real estate agents have the knowledge and expertise to find you a great deal. They know the market, they know what homes are worth and they know how to negotiate with buyers. Attempting to buy a home without a real estate professionals help can make the process quite difficult. Plus, in most cases, the seller pays the REALTOR® fees.

3. What Kind of Credit Score Do I Need to Buy a Home?

Answer: The better your credit, the better deal you’re going to be able to get. Your credit score is one of the biggest determining factors in what interest rate your mortgage lender will offer you. While there are programs out there to help those with low credit scores, having a score above 620 is going to be best. Different loan programs will have minimum requirements for credit score, so talk to your lender about what options are available to you.

4. How Much Money Do I Need for a Down Payment?

Answer: Traditionally, you were required to put down at least 20% when buying a home. Today, programs are available to help people get into homes with as little as 3-5% down. Just keep in mind that the more money you can put down, the better deal you’re likely to get and the more equity you already have built up in your house. You’ll also want to know that anything less than 20% down typically requires you to pay PMI, or private mortgage insurance. This is an insurance that protects the lender if you default on the loan.

5. How Many Homes Should I Look at Before Making an Offer?

Answer: The answer is simple; there’s no set number of homes you should look at before making an offer. Some people find their home within hours, while others search for months. When you find a home that you like, at the right price, go ahead and make an offer. Your trusted real estate agent at the Lake of the Ozarks will be able to offer you advice about making an offer on the particular home you are looking at. If someone else is interested in the same house, you’ll want to make an offer as soon as possible, not waste time looking at other homes.

Whether you are moving down the street or relocating to the Lake of the Ozarks, Eagles Nest Realty has the expertise and resources to help you find the perfect home! We work closely with our clients to understand your real estate needs, and to answer all your questions about the home buying process. Our goal is to help you find the best home at the best possible price. Give us a call at 877-452-5338 to get started today!

Call (573) 374-0769 to schedule a showing today!

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Preparing to Apply for a Home Loan

If you’re looking to buy a home at the Lake of the Ozarks, chances are you are going to need to finance the purchase. Applying for a home loan requires some preparation, and there are several documents that you will want to gather before starting the home loan process. Keep reading to learn how you can start preparing now. As your Lake of the Ozarks real estate agent, I'm here to help you every step of the way!

Income & Employment Verification 

In order to be approved for a home loan, you will need to provide information on your employment and income. If you collect a paycheck, you will be required to show your W-2 forms from the previous two years. In addition, you’ll be asked to show your most recent pay stub to show that you are still employed and are making at least the same, if not more, amount of money. If you own your own business, you will need to provide a profit and loss statement or 1099 forms. You will also be asked to provide your most recent federal tax return, and possibly the last two years’ tax returns. The lender needs to make sure you can afford your monthly mortgage payments.

Debt Information 

Another important factor in the loan approval process is the amount of debt you have. A mortgage lender will use your current debt information to determine the risk involved with lending you money. You will be asked to provide a complete list of your debts, such as credit cards, student loans, car loans and child support payments, along with minimum monthly payments and balances. Your debt-to-income ratio, as well as your credit history will be evaluated. These factors will be used to determine not only your risk level, but also what interest rates are available to you personally. The better your credit score, the better your rates will be.

Depending on your unique financial situation, additional documentation may be required for your loan application. Talk to a professional mortgage lender to learn more. As your premier real estate agent at the Lake of the Ozarks, I can recommended lenders that I've worked with in the past. For all your home buying needs, trust Eagle's Nest Realty!

Call (573) 374-0769 to schedule a showing today!

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5 Solid Reasons Why You Shouldn't FSBO

When it comes time to sell your home at the Lake of the Ozarks, you’ll need to decide if you’re going to hire a real estate agent to help you. Some homeowners believe that they can make more money off the sale of their home by selling it on their own. By avoiding the real estate agent’s commission, you’ll be able to keep more money right? Not necessarily. Keep reading for some solid reasons why you shouldn’t FSBO, or “For Sale By Owner.”

1. FSBOs Generally Sell for Less. 

On average, homes sold by a real estate agent sell for more than the FSBOs do. The right agent will be able to price your property to get the most money in the shortest time. That can get you 10-30% more net profit, and you’re only paying the selling agent 3% commission. Therefore, you’re not really getting more money out of the deal by opting out of hiring a professional real estate agent at the Lake of the Ozarks.

2. Marketing Opportunities are Limited for FSBOs. 

As an individual seller, you’re going to have more limited avenues of marketing. Sure, you can put a sign in your yard and post some pictures on Craigslist and Facebook, but that’s about it. FSBOs don’t get added to the MLS, which is where most buyers go to find a home, and other real estate agents go to find their buyers a home. They also don’t get printed in real estate magazines.

3. FSBOs Typically Sit On The Market Longer. 

Due to the lack of marketing, FSBOs will likely sit on the market longer. Sellers often don’t have the knowledge to price their home properly either, which can result in longer time on the market. Pricing it too high will keep buyers at bay, but pricing it too low conveys that there’s something wrong with the property. In addition, the longer it sits on the market, the less money you’ll get upon final sale.

4. Time Costs the Seller Money. 

Selling a home is a lot of work. Those that choose not to hire a real estate agent need to be prepared to sacrifice a lot of time. From staging and marketing to showing the home and negotiating terms, FSBOs require hard work if you actually want to get it sold. Leave it up to the professionals to do that work and you’ll save time and be a lot less stressed.

5. Sellers Don’t Have the Market Knowledge.  

Real estate agents sell homes for a living; they went to school for it. They are constantly involved in the market and keep up on new trends, etc. When you sell your home without an agent, you’re risking liability issues. Any mistakes you make can cost you greatly. Agents have something called E&O (Errors & Omissions) Insurance that protects them when mistakes are made in contracts.

Avoiding the hassle and hiring an agent to help you is the best route to go! If you’re in need of a qualified Lake of the Ozarks real estate agent to sell your home, trust none other than Eagle’s Nest Realty! We have served the Lake of the Ozarks area for 15+ years, and have the experience needed to get your home sold at a great price! Give us a call at 573-374-0769 to discuss selling your home today.

Call (573) 374-0769 to schedule a showing today!

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