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 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 level of experience of your Mortgage Planner. Many people have a friend or relative that's "in the business". Typically this is a licensed but inexperienced person earning some money part time. Your home is the largest investment you will ever have so it is vital to deal with an experienced person. Ask your Mortgage Planner about their credentials. How many families have they served? How long in the business? What is their experience level with the products or programs that you need. Your Mortgage Planner will be handling your hard earned money - be sure that you have confidence in their ability.
4. Do not think there are only 1 or 2 loan options available. Many buyers are unaware of the different loan options available to them. It is easy to see on the news the challenges in mortgage finance and assume that you will need 10% - 20% down payment to purchase a home. There are still excellent home loan programs available even with ZERO down payment. Speak to a qualified Mortgage Planner to review all your options.
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. Do not hide past credit difficulties. One of the most important functions that a good Mortgage Planner provides is helping you obtain your mortgage by overcoming past credit problems. Your Mortgage Planner is on your side and while past credit problems may be embarassing it will often be found out somewhere down the line. Be sure to explain everything to them so they can provide you with the best possible service.
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.
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 level of experience of your Mortgage Planner. Many people have a friend or relative that's "in the business". Typically this is a licensed but inexperienced person earning some money part time. Your home is the largest investment you will ever have so it is vital to deal with an experienced person. Ask your Mortgage Planner about their credentials. How many families have they served? How long in the business? What is their experience level with the products or programs that you need. Your Mortgage Planner will be handling your hard earned money - be sure that you have confidence in their ability.
4. Do not think there are only 1 or 2 loan options available. Many buyers are unaware of the different loan options available to them. It is easy to see on the news the challenges in mortgage finance and assume that you will need 10% - 20% down payment to purchase a home. There are still excellent home loan programs available even with ZERO down payment. Speak to a qualified Mortgage Planner to review all your options.
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. Do not hide past credit difficulties. One of the most important functions that a good Mortgage Planner provides is helping you obtain your mortgage by overcoming past credit problems. Your Mortgage Planner is on your side and while past credit problems may be embarassing it will often be found out somewhere down the line. Be sure to explain everything to them so they can provide you with the best possible service.
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.
About the Author:
If you are looking to Buy a Home then Visit Rob Kosbergs' Detailed FREE Guide on Buying your Perfect Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog
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