Friday, March 30, 2018

Am I Financially Ready to Buy a Home?

That time has come and you are so tired of renting. We understand some of the frustrations that can come along with renting, such as not being able to control who your neighbors are or feeling like you are throwing your money away. While those frustrations are real, it's important that you are truly financially ready before you make the decision to buy a home. Our bank at the Lake of the Ozarks is here to give you a few questions you can ask yourself in order to help you to know whether or not you are financially ready to buy a home. If you feel you are ready, call First Bank of the Lake and visit with our mortgage loan officers. We are happy to meet with you and discuss your financial needs.

Questions to Ask Yourself When Deciding If You Are Financially Ready to Buy a Home

1. Am I currently debt free?

Consider settling your debts before you choose to buy a house. A mortgage loan could be a 30-year commitment of debt, so you don't want to be struggling to afford your mortgage while juggling other debts such as car payments or credit card payments, if possible.

2. Do I have enough money saved for a down payment?

Your down payment will most likely be thousands of dollars, depending on how much the home is that you are looking to buy. If you don't already have that saved, then now may not be the best time for you to buy.

3. Do I plan to live in this area for a long time?

Buying a home is a long-term commitment, financially. If you are not looking to live in your current area for longer than just a few years, than it may not be financially smart for you to buy a home in that area right now.

4. Do I have an emergency savings set up?

Emergency savings are very good to have when buying a home. They should equate to anywhere from 3 to 6 months of your living expenses. If you buy a house, you need to still be able to afford your payments, if you lose your job and are spending time looking for a new one.

5. Can I cover the closing costs?

Sometimes, sellers will cover the closing costs, but that's not always the case. Typically closing costs will be anywhere from 2 to 5 % of your home's purchase price, so if you are looking to buy a home that costs $100,000, you should be prepared to pay anywhere from $2000-$5000 in closing costs, just in case.

Need a Mortgage Loan with a Good Interest Rate?

Come see First Bank of the Lake. Our loan officers at the Lake of the Ozarks are here to help you understand the financial workings behind mortgage loans. We will work with you face-to-face to try to meet your financial needs. If you have any questions about our mortgage loans, give us a call at 573-348-2265 or stop in and see us at 4558 Osage Beach Parkway, Suite 100 in Osage Beach between 8:30 am and 4 p.m. Monday through Friday.

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First Bank of the Lake - Striving For Excellence
Member FDIC. Equal Housing Lender.

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265

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