If you're thinking about relocating to the Lake of the Ozarks, there's no better time than now to do just that! I've got the perfect home for the relocating family located right in the heart of the
Tips For First Time Home Buyers
Buying a house is a big decision that should never be taken lightly. The home buying process is extremely overwhelming but also very exciting, especially when it's your first home. There are many factors that go into buying a home, so it’s crucial to do your research before you begin looking at houses for sale at the Lake of the Ozarks. If you are in the market to buy your first home, keep these helpful tips in mind! Not sure where to start? Give Dianne Stewart eXp Realty a call. I can help you every step of the way.
1. Know Your Credit Score
Your credit score is one of the most important factors when it comes to qualifying for a home loan. When checking your score, it is important to look over the report for any mistakes, unpaid accounts or collection accounts, as these all affect the score. While you won’t know your EXACT score until it is ran for your loan, it’s good to have an idea of where your score stands.
Just because you pay everything on time each month doesn’t mean you are going to have the best score. There are many factors that make up your credit score. Your usage percentage, payment history, and length of accounts are all factors. If you do have a poor score, repairing it will take time. If you need to work on your credit score, you should start at least 6 months before you begin your house hunting.
2. Track and Evaluate Your Spending Habits
Do you know how you are spending your money each month? If not, now is a great time to start tracking your spending habits. First-time buyers should incorporate a budget sheet. Buying a home is one of the biggest expenses you will have in your life, so the more prepared you are, the better. Each month, you should track how much money is coming in, but more importantly, how much you are spending. Set up budgets for different categories in your life. For example entertainment budget, food budget, car and gas budget, etc. Track your spending for a few months and change your habits if necessary.
3. Organization is Key
When applying for mortgages, homebuyers must document income and taxes. They will typically request2 recent pay stubs, the past 2 years' W-2s, tax returns and the last 2 months of bank statements. Buying a home can take a long time, however, knowing what you need and where to find it can save time when you're ready to apply for a mortgage. Organization is key. When starting the home buying process, you should create a specific binder where you can organize and keep all necessary documents. This will hopefully save you a lot of time and a lot of frustration.
4. Get Qualified for a Loan Before House Hunting
Before you start looking for your first home, you should have a good understanding of how much money you qualify for. The last thing you want is to fall in love with a home you can’t afford. There are many factors that go into determining how much you qualify for, such as your monthly income, how much debt you have, and how long you've been at your current job. It is best to know your loan amount ahead of time so you know what types of homes you should be looking at.
5. Know How Much You Can ACTUALLY Afford
This is crucial. Knowing how much you can actually afford is completely different than how much money you are eligible for with a loan. When it comes to buying a house, you’ll want to keep in mind the total costs that are associated with it, not just the monthly mortgage payment. This is when you need to look at the whole picture. Take a look at how much down payment you can afford, how high the property taxes are, how much insurance will cost, how much you plan to spend on maintenance and how much closing costs will be. All of these are important factors to keep in mind when creating your budget.
Contact the Best Real Estate Agent at the Lake of the Ozarks
There are many factors that go into buying a house. Luckily, with the help of the best real estate agent at the Lake of the Ozarks, the buying process can go smoothly. If you are thinking about relocating to the Lake of the Ozarks, let Dianne Stewart eXp Realty help you find your dream home. I know the Lake area well and can help you find the perfect home!
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