5 Things No One Told You About Buying Your First Home
Buying your first home is a huge step. It will likely be the biggest financial commitment you have yet to make in your lifetime, and the decisions you make during the buying process will likely impact your life for years to come. Considering the lasting impact this process will have, it's important that you at least have a general idea of what to expect. The team at Arrowhead Title, Inc. is here to help you prepare. In today's blog post, we're delving into a few of the lesser-known aspects of buying a house at the Lake of the Ozarks.
1. You Have To Pay More Than The Purchase Price.
When you take out a mortgage loan to buy a home, you aren't technically the one buying the house. Your lender is making the initial purchase for you, with the agreement that you will spend the next thirty years (or fifteen or twenty, depending on the terms of your loan) paying them back. The lender accepts payment for their service in the form of interest. Thus, the total cost for you to buy the home will be the purchase price plus the interest and any applicable fees your lender charges. You should also be prepared to cover the initial costs of the home inspection, home appraisal, closing fees, etc.
2. It Takes Time To Be A Smart Financial Move.
Real estate professionals like to emphasize the incredible investment opportunity that homeownership provides. It is true - homeownership does provide a phenomenal opportunity to increase your family's net worth - but the financial gain does not happen immediately. It takes time for the investment to outweigh the initial costs of buying a home. If you want to see a return on your investment, you may want to plan on only buying a home if you see yourself living there for a minimum of 3-4 years.
3. Your Lender Is Going To Thoroughly Investigate Your Financial History.
Before making such a big investment, your lender will want to make sure that they can trust you to pay them back. You will be asked to provide multiple documents so your lender can get an accurate depiction of your financial position, such as your tax returns, bank statements, W-2s, and pay stubs. Your lender will also pull a full copy of your credit report.
4. You Shouldn't Start The Process By House Hunting.
Browsing homes online and touring them with a real estate agent is arguably the most fun process of buying a home, but it shouldn't be your first step. Your first step should be to talk with a lender to get pre-approved. If you want the sellers of your chosen home to take your offer seriously, you'll need to be pre-approved - or, at the very least, prequalified. As an added benefit, doing this step first will help you realistically identify your price range.
5. Buying A Home Takes A Lot Of Time.
Finding and purchasing your dream home won't happen overnight. In fact, it will probably take a minimum of one month from start to finish (and potentially much longer). It takes time to scour the local listings, tour the properties with the most potential, negotiate the terms of the sale, secure a mortgage loan, and attend to all the other steps along the way. Try to remain patient throughout the process; rushing through things will likely only complicate them.
When You Are Ready To Buy, Remember Arrowhead Title!
If you are buying a house in the Lake Area, we hope you'll remember us when it comes time to close on your home. Our Lake of the Ozarks title experts can help facilitate the closing process to ensure that all parties work together smoothly. We can also conduct a thorough title search to uncover any potential issues prior to your closing date, and we can issue the title policies to protect both your and the lender's interests. For more information about our title services at the Lake of the Ozarks, check us out at www.ArrowheadTitle.com.
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
1. You Have To Pay More Than The Purchase Price.
When you take out a mortgage loan to buy a home, you aren't technically the one buying the house. Your lender is making the initial purchase for you, with the agreement that you will spend the next thirty years (or fifteen or twenty, depending on the terms of your loan) paying them back. The lender accepts payment for their service in the form of interest. Thus, the total cost for you to buy the home will be the purchase price plus the interest and any applicable fees your lender charges. You should also be prepared to cover the initial costs of the home inspection, home appraisal, closing fees, etc.
2. It Takes Time To Be A Smart Financial Move.
Real estate professionals like to emphasize the incredible investment opportunity that homeownership provides. It is true - homeownership does provide a phenomenal opportunity to increase your family's net worth - but the financial gain does not happen immediately. It takes time for the investment to outweigh the initial costs of buying a home. If you want to see a return on your investment, you may want to plan on only buying a home if you see yourself living there for a minimum of 3-4 years.
Before making such a big investment, your lender will want to make sure that they can trust you to pay them back. You will be asked to provide multiple documents so your lender can get an accurate depiction of your financial position, such as your tax returns, bank statements, W-2s, and pay stubs. Your lender will also pull a full copy of your credit report.
4. You Shouldn't Start The Process By House Hunting.
Browsing homes online and touring them with a real estate agent is arguably the most fun process of buying a home, but it shouldn't be your first step. Your first step should be to talk with a lender to get pre-approved. If you want the sellers of your chosen home to take your offer seriously, you'll need to be pre-approved - or, at the very least, prequalified. As an added benefit, doing this step first will help you realistically identify your price range.
Finding and purchasing your dream home won't happen overnight. In fact, it will probably take a minimum of one month from start to finish (and potentially much longer). It takes time to scour the local listings, tour the properties with the most potential, negotiate the terms of the sale, secure a mortgage loan, and attend to all the other steps along the way. Try to remain patient throughout the process; rushing through things will likely only complicate them.
When You Are Ready To Buy, Remember Arrowhead Title!
If you are buying a house in the Lake Area, we hope you'll remember us when it comes time to close on your home. Our Lake of the Ozarks title experts can help facilitate the closing process to ensure that all parties work together smoothly. We can also conduct a thorough title search to uncover any potential issues prior to your closing date, and we can issue the title policies to protect both your and the lender's interests. For more information about our title services at the Lake of the Ozarks, check us out at www.ArrowheadTitle.com.
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
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