5 Questions To Ask Yourself Before Buying Your First Home
Are you thinking about buying your first home at the Lake of the Ozarks? Congratulations! Buying your first home is a big step, and it's incredibly exciting. As experienced real estate agents at the Lake, we have learned a few tricks that can make the process of buying your first home much easier. If you're getting ready to buy your first home, ask yourself these questions.
Where do you see yourself in five years?
This isn't just an interview question. Before you can find your perfect first home at the Lake, you have to understand what your long term homeownership goals are. Will you raise children in that house? Do you plan on moving again in a few years? The length of time you plan to spend in your first home will determine how big of a house you need and what type of mortgage loan you may want to try for, to just name a few factors.
What factors are non-negotiable?
The odds of finding a home that meets every single one of your desired criteria are slim, so buying a home often requires compromise. Before you can find a good compromise, though, you must first identify which factors are non-negotiable. Do you have children that need their own bedrooms? Are you willing to all share a bathroom, or does your home need to have at least two? Once you identify your future home's must-have qualities, you will be able to begin your search.
What size mortgage loan can you qualify for?
Before you begin actively searching for your first home, do yourself a favor and talk to a mortgage lender. There are two steps that must be completed before you can be fully approved for a mortgage loan: prequalification and preapproval.
Because it is more involved, being preapproved carries much more weight in the real estate market. Not only will you have a realistic idea of what price you'll be able to afford - sellers will realize that you are serious about buying and will likely be more accommodating.
Where do you see yourself in five years?
This isn't just an interview question. Before you can find your perfect first home at the Lake, you have to understand what your long term homeownership goals are. Will you raise children in that house? Do you plan on moving again in a few years? The length of time you plan to spend in your first home will determine how big of a house you need and what type of mortgage loan you may want to try for, to just name a few factors.
What factors are non-negotiable?
The odds of finding a home that meets every single one of your desired criteria are slim, so buying a home often requires compromise. Before you can find a good compromise, though, you must first identify which factors are non-negotiable. Do you have children that need their own bedrooms? Are you willing to all share a bathroom, or does your home need to have at least two? Once you identify your future home's must-have qualities, you will be able to begin your search.
What size mortgage loan can you qualify for?
Before you begin actively searching for your first home, do yourself a favor and talk to a mortgage lender. There are two steps that must be completed before you can be fully approved for a mortgage loan: prequalification and preapproval.
- Being prequalified means you have talked to a mortgage lender and he/she has provided a written statement that he/she believes you will qualify for a certain loan amount, based on the information you provided.
- Being preapproved means that you have submitted an official mortgage application, that your mortgage lender has investigated proof of your income, total financial assets, and outstanding debts, and that your lender has provided a written statement he/she they believe you will be able to receive a loan for 'x' amount.
Because it is more involved, being preapproved carries much more weight in the real estate market. Not only will you have a realistic idea of what price you'll be able to afford - sellers will realize that you are serious about buying and will likely be more accommodating.
How much house can you actually afford?
Unfortunately, the mortgage loan you qualify for and the amount of house you can actually afford to purchase are not always the same thing. In order to approve you for a loan, lenders only look at your debt-to-income ratio and how your new mortgage payment will affect it. Owning your own home comes with lots of extra expenses that your lender will not consider, however. The bigger the home, the more your monthly electricity bill will be. Home repairs come unexpectedly and can be quite costly. It's important to take a critical look at your monthly income and your anticipated (and unanticipated) expenses to see how much you will be able to truly afford.
What's the resale value of your potential home?
Even if you don't plan on selling your home for many years, it's always important to consider the resale value. You never know when your life may take an unexpected turn and you will have to sell. Even if you don't sell the home, your children may decide to sell it someday. Location has a huge impact on resale value, as does the quality of the home's interior features and its curb appeal. Will there be ways that you can increase your home's value while you live there?
Gattermeir Davidson Can Help!
Don't attempt to buy your first home alone. Having a dedicated real estate agent on your side to guide you through the process makes a world of difference. If you're ready to begin your Lake of the Ozarks home search, give us a call!
Stay connected with Gattermeir Davidson Real Estate, LLC!
Gattermeir Davidson Real Estate, LLC
Stay connected with Gattermeir Davidson Real Estate, LLC!
2011 REALTOR Salesperson of the Year
Missouri Association of Realtors
752 Bagnell Dam Blvd., Suite A
Lake Ozark, MO 65049
Office | 573.365.1555
Fax | 573.365.1766
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