ArticleZones.com » Finance » Mortgages » How to Avoid the 7 most Critical Home Buying Mistakes
View PDF | Print View
Article By: RobKosberg
Total views: 13
Word Count: 639
How to Avoid the 7 most Critical Home Buying Mistakes
2. Do not Accumulate new Debt. Many people begin to get very excited at the prospect of buying their dream home. They begin to think about all the items they will need in their new home. New appliances, furniture or even how a new car will look in the driveway. Don?t laugh, I see it all the time. Do NOT accumulate any new debt prior to closing on your new home or it will through off the qualifying ratios and could cause you to lose the home.
3. Know the Lender's Track Record. It's important to rate your lenders reputation for speedy processing, knowledgeable loan service and meeting contract deadlines. You want to hire a mortgage planner who will treat you the way you want to be treated and has respect for your purchase. One with experience and knowledge of the Loan product that you are choosing. Be careful dealing with an inexperienced person just because they are a "friend or relative". Your lender will be dealing with your hard earned money and home purchase, so you want to be confident that you have made the correct decisions.
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. 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: ArticleZones.com
About the Author
If you are looking to Buy a Home then Visit Rob Kosbergs' Detailed FREE Report on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog
Comments
No comments posted.Add Comment
You do not have permission to comment. If you log in, you will be able to comment.More articles in this Category
1. How to Avoid the 7 most Critical Home Buying Mistakes2. Types of Reverse Mortgage Available
3. Using a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years
4. HUD Reverse Mortgage
5. FHA Guidelines: HUD May Stop Your Loan From Closing