subject: My Mortgage Series Three Common Home Buying Mistakes to Avoid [print this page] My Mortgage Series Three Common Home Buying Mistakes to Avoid
By Greg Parrish
The purchase of a home may be the biggest purchase you'll ever make. If you avoid these three common mistakes, you'll save yourself a lot of time, money and effort.
Mistake #1 NOT Getting Your Mortgage Pre-Approval
Unless you're paying cash, you'll need to secure mortgage financing for the purchase of your home. By having your mortgage loan pre-approval and in place BEFORE you start shopping, you'll gain the freedom to relax and keep your center of attention on finding the right house. You'll also avoid the rush to get your financing in place once you find your home. Consider these points:
A pre-approved mortgage loan will help you identify your target market, and avoid the frustration of looking at homes that are not in your price range, helping you stay focused on homes you can afford.
Real estate agents and sellers consider the pre-approved buyer a more serious buyer. Therefore, the offer you place on a home that is accompanied by a pre-approval letter from your lender will carry greater weight than that of a not-yet-approved buyer.
Mistake #2 Choosing the Wrong Real Estate Agent
The wrong real estate agent can be a very costly mistake. However, finding the right agent will save you time and money and greatly reduce the stress associated with a home purchase. What determines the "right" real estate agent? Here are some important questions to ask yourself about the agent you're considering:
Trust Will they do what they say they will do? Will they respect and honor your time? Are they dependable? Are you able to put your confidence in them that they will work in your best interest?
Professionalism Do they have a keen understanding of the market you are buying in? Do they understand what amenities you want in your next home? Can they locate them in your price range?
Personality - You're going to be spending a lot of time with this person so you must be able to get along with them. The agent you select must have a personality that works with yours.
Experience You need an agent who is proficient in negotiation. This person should be able to take the time to offer advice on the home buying process stemming from their years of experience selling real estate.
Mistake #3 Mismanaging Your Credit
Let me say that managing your credit profile at all times is very important. While you're in the home buying process it's vital. New debt of any kind may prove disastrous for your loan approval. Review your credit report with your loan officer. Your pre-approval is based on the financial profile presented at the time of your mortgage application, so don't make any major credit changes. All large credit purchase are discouraged. These would include, but, are not limited to, cars, major appliances, computers, new home furniture, etc. Avoid the "one year same as cash" programs as this will negatively affect your credit profile as well.
Avoiding these mistakes during your home buying process will help you navigate to a successful home purchase and many years of happy home ownership.
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