7 Critical Home Buying Mistakes to Avoid

1. They Do not have their Credit checked early. Too Many home buyers do not know their credit scores and what their credit really looks like. It is extremely important to have a lender run a tri-merge credit report. A tri-merge is a report from all three credit reporting agencies. The majority of lenders will take the middle credit score of the three. You would be surprised what is and what isn?t on your credit report. It?s important to determine if we have credit issues early on. This will enable us to repair the credit and raise the score. A slightly lower credit score may cost you thousands of dollars in higher interest.

2. Do not use your credit to make new purchases prior to closing. As you get closer to buying your new home you will begin to picture all the new needs of that home. New furniture, appliances or maybe even how a new car will look in the driveway! Don't laugh, more than one of my past clients has done that. Be careful not to accumulate any new debt prior to closing. New debt lowers credit scores and makes qualifying more difficult.

3. Know your Mortgage Planners experience and ability. It is vital to have someone with experience handling the largest purchase of your life. Sometimes people will have a friend or relative that's in the "business". Often this is an inexperienced person trying to earn part time income. It is important to have an experienced Mortgage Planner on your side to consult, negotiate and oversee the details of your transaction. Find out what credentials they have. Are they licensed? Do they have a certification in the particular loan programs you are interested in. How long have they worked full time in the industry? Your Mortgage Planner will be responsible for your largest purchase - make sure that you have confidence in that.

4. Thinking there are only 1 or 2 Loan Options. Many buyers assume that there are only a couple loan options available to them. Perhaps they are told by a bank that they need 10% - 20% as a down payment and so assume that they must continue renting until that have that money saved. Make sure that you speak to an experienced Mortgage Planner to determine ALL your options. Today, there are dozens of home loans available. Some that require no down payment at all.

5. Not knowing what affects your Credit. Subtle changes in your credit can affect your score dramatically. Be careful not to have your credit "pulled" too many times. Each lender you speak to will want to pull your credit. As each one does your score may drop. Do not close accounts or open new ones prior to obtaining your mortgage. Closing credit card accounts actually drops your score so never do this prior to closing.

6. Don't Try To Hide Your Past Financial Difficulties. One of the important services that a good Mortgage Planner offers is helping you overcome past financial difficulties that may hinder your ability to have a loan approved. Your mortgage planner should be on your side. Be careful, to explain any possible credit issue prior to moving forward with your purchase. Supply the information that helps them provide you with the best possible rate, terms and minimizes the impact these issues can present.

7. Get a Mortgage Pre-Approval. Preapproval is a necessary ingredient in negotiating the best deal possible with the seller. A seller will want to see your approval ceritficate to know that you are negotiating in good faith. It is simple to do and free. It is done over the phone and will give you a greater sense of freedom as you shop for a home.

Article Source: ArticlesMaker.com

About the Author: If you are in the early stages to Buy a Home then check out Rob Kosbergs' Detailed FREE Report on Buying your Perfect Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog 

Next and Previous Articles

Next Article - How to Avoid the 7 most Critical Home Buying Mistakes
Previous Article - Is a Bad Credit Mortgage Still Available? How To Obtain One

Article Statistics

ArticlesMaker.com » Finance » Mortgage-refinance » 7 Critical Home Buying Mistakes to Avoid

Author: RobKosberg  |  Total views: 30  |  Word Count: 650

More Articles from: Mortgage - Refinance

1: Ownership rules and the mortgage market in Dubai
    (Author: William King | Date: Aug 21st 2008 | Words: 517 | Views: 32 times)
2: Home Mortgage Refinance - Getting the Best Deal Possible
    (Author: limalan88 | Date: Jun 12th 2008 | Words: 502 | Views: 24 times)
3: What is a Reverse Mortgage? How Can You Benefit From One?
    (Author: NeonX | Date: Jul 20th 2008 | Words: 557 | Views: 23 times)
4: Welcome to Live Mortgage Leads 4u
    (Author: felixantony | Date: Sep 26th 2008 | Words: 635 | Views: 11 times)
5: Home Mortgage Refinancing: Do It Now Before It's Too Late
    (Author: limalan88 | Date: Jan 25th 2008 | Words: 502 | Views: 116 times)

---

Popular Articles from: Mortgage - Refinance

1: Is it the right time to refinance your home?
    (Author: Admin | Date: Nov 19th 2007 | Words: 273 | Views: 825 times)
2: Bad Credit Loan On Mortgage
    (Author: creditdan | Date: Jan 23rd 2007 | Words: 595 | Views: 646 times)
3: Internet Mortgage Leads, Why Aren't They Working
    (Author: andywest | Date: Mar 22nd 2007 | Words: 614 | Views: 449 times)
4: Home Refinancing is more than Just about Interest Rates
    (Author: limalan88 | Date: Jan 18th 2008 | Words: 519 | Views: 160 times)
5: How Can A Home Loan Refinance Be Beneficial
    (Author: limalan88 | Date: Jan 29th 2008 | Words: 515 | Views: 149 times)

---

Navigation

ArticlesMaker.com » Finance » Mortgage-refinance » 7 Critical Home Buying Mistakes to Avoid

---

ThreePass.com - Cheap Directory Submission & Article Distribution Service.