5 Mistakes Most New Home Buyers Make

Posted by:
Dennis Nottingham
July 25, 2019
3 minutes, 49 seconds

You’re setting out to buy a home and it’s likely one of the most exciting, and stressful, times of your life. And while it can be tempting to jump on a home search site that rhymes with pillow and go for it, you can now avoid the common pitfalls of first time homebuyers by naking sure you don’t commit any of these 5 mistakes that others have already made for you!

1) Not Figuring Out How Much House You Can Afford

Like we said above, it can be tempting to get online and GO FOR IT! But then, you find it, the house of your dreams! BUT! By the time you find a realtor and try to set up a showing, someone else submitted an offer and it was accepted. But how? How were they so quick? They were Pre-Approved!

Getting Pre-Approved is the first, and arguably most important, step in the home buying process. Getting Pre-Approved is as simple as contacting a Mortgage Lender, filling out a form, and then seeing how much house you can afford based on things like your income, debt, savings, etc.!

2) Not Looking For First Time Home Buyer Programs

Depending on where you are buying your home, your personal background, and various loan options; you could qualify for a first time home buyer program! This could mean a significantly lower down payment than the once standard 20%, lower monthly payments, and other saved costs!

3) Not Considering a New Construction Home

Most new home buyers start their home search by looking at existing homes, and don’t ever consider building a new home because they think it’s too expensive. This is no longer the case these days! Companies like M/I homes offer SMART Options, meaning a brand new home in a community like Fisher’s can be yours for less than you think!

4) Not Checking and Correcting Your Credit Report

Checking your credit report to make sure it’s accurate. Lenders will go over your credit report with a fine tuned comb, so making sure everything on your report is correct is essential in getting the best loan rate and option for you. Pull your report from one of the major 3 companies, or use another credible site. Take it up with one of the 3 major companies if there is something on there you find incorrect.

5) Applying For Credit Before Your Home Purchase is Final

Before your mortgage is final, do not mess with your credit! This means no applying for a new credit card, no booking that European vacation via credit, or anything else credit related. Applying for or adding new credit has the potential to lower your credit score, and this could in turn have an impact on your loan.

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