Biggest Mistakes Of First Time Home Buyers

There are several potential blunders you’ll want to side step as a first time homeowner. Three of the biggest mistakes that many first timers make are:

1. Purchasing the wrong home – Make sure the home you want is one that you can realistically afford, is located in a good area, and has all of the features and benefits that are the most important to you. It is highly unlikely that you will find a home that will have absolutely everything you want and fit in your price range, so be prepared to make compromises. It’s the difference between knowing what you must have/need and what you can live without. Things to think about include, but are not limited to:
• The number of rooms and bathrooms you require for a comfortable and manageable living space.
• The safety of the neighborhood.
• How busy are the streets?
• Etc.
Don’t make a fast decision. Even if you fall in love with a home and everything seems to fit, view it from every angle with a critical eye. Some homes really are too good to be true.


2. Altering your credit score prior to closing – Once you have completed your loan application, do not make the huge mistake of making purchases on credit or with a credit card. Although it may be tempting to make big purchases for your new home, such as buying furniture, appliances, or other equipment, you need to put buying on hold until after closing.
   
   
   Making purchases with credit can alter your credit score and lead to an underwriter cancelling your loan. On the other hand, in the event your loan contingency has been removed or expired, in addition to losing your home, you could forfeit your earnest money deposit. The bottom line is: don’t buy on credit before closing and keep your credit score the same, and, if possible, work on improving it.


3. Not being upfront and honest with your real estate advisor – Your advisor, whether it is a real estate agent or a real estate lawyer, has a fiduciary obligation to represent your best interests. Real estate professionals work for you and with you, to help you obtain the home that is the most ideal for you. However, they can’t help you if you withhold information from them. You need to trust your agent and be open and honest with them about what you are thinking and your feelings about buying. Even if you have thoughts about backing out of a deal bring this to your agent’s attention. If you do not like your advisor or do not have confidence in them, find another one to represent you who you like better.

The bottom line is that there are lots of factors you need to consider, professionals you need to consult, and plenty of research to be done if you want to avoid making big mistakes that could cost you money and even your home.

Anthony Myers is a seasoned entrepreneur and mortgage industry veteran with over 15 years experience in managing and loan consulting. Prided in establishing successful Mortgage Consulting teams that create and foster long-term relationships with clients. Contact www.peakhomeloan.com.