How to Avoid the 7 most Critical Home Buying Mistakes

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. Assuming that your options are very limited. Too many people think that their options are now limited because of the strain in the mortgage arena. Maybe they spoke to a bank and found that the bank requires 10% - 20% as a down payment to qualify so they decide to continue renting until they have enough saved. There are still many excellent loan programs available some with ZERO down payment. Speak to your Mortgage Planner about the option that best suits you.

5. Being unaware of how changes affect your credit score. It's important to know what will affect your credit score. Often people think that what they've done will improve their score when in fact it drops it. For instance, never close your credit accounts prior to buying your home. Closing a credit account will cause your score to drop, at least temporarily. Be careful how many people check your credit as well. Lenders will view this as you trying to obtain new credit and lower your score also.

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. Not Getting Mortgage Preapproval. Pre-approval is fast, easy and free. A seller will want to see your pre-approval certificate before they begin to negotiate with you. When you have a pre-approved mortgage, you can also shop for a home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

Article Source: ArticlesMaker.com

About the Author: If you are in the market to Buy a Home then check out Rob Kosbergs' Complete FREE Guide on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog 

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