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7 Deadly Buyer Mistakes to Avoid

Author: RobKosberg
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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. Be careful not to make any new purchases on credit. As the prospect of buying your new home comes closer you will begin to think of all the new needs you'll have. Perhaps it's larger so you'll need new furniture. Maybe new appliances or even how a new car will look in the driveway. Don't laugh, if it hadn't been done by my past clients then I wouldn't have mentioned it. Do NOT accumulate new debt before you close on your new home. New debt lowers credit scores and throughs off the deb to income ratio that you were qualified with.

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. 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. 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.

About the Author

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