Overview
Keep close tabs on your credit by checking it at least once a year. One thing you should do when buying a home for the first time is to find a lender who you’re comfortable dealing with.
Getting a mortgage before you shop for a home will save you lots of time and will make sellers that much more likely to accept your offer over others.
Buying a home can be a confusing and complicated process, especially for a first-time home buyer. But if you follow these tips, you can make sure things go as smoothly as possible.
- Mistake #1: Not finding the right person to guide you through the home buying process
- Mistake #2: Not checking your credit report and score
- Mistake #3: Not making your offer look good enough to sellers
Mistake #1: Not finding the right person to guide you through the home buying process
Many people forget that it’s just as important to shop around for the right real estate agent and lender as it is to shop for the right home. A wrong person leading you through this extensive process can lead to hassles and headaches. Having someone help you through the home buying process can match your needs and goals with the right mortgage possibilities.
Solution:
To find both the right real estate agent and lender, get referrals from family and friends. Do research online. Ask your potential real estate agents and lenders lots of questions! They should seem willing and able to answer any and all questions you may have. The more you ask, the more educated you can be to make the right decisions.
A good real estate agent should show you many houses that fall within your price range so that you know what’s on the market and can compare each one to how well they suit your needs. A good mortgage banker should be willing to guide you through the entire mortgage process. Make sure you feel at ease with each person. They should be friendly and accommodating to your needs, you don’t want them to pressure you into doing something you’re not comfortable doing.
Mistake #2: Not checking your credit report and score
You wouldn’t go into a car dealership and buy a car without knowing how much it costs. So why would you go to a lender without knowing what kind of mortgage you could get?
Solution:
Knowing what kind of mortgage you can qualify for depends on a number of different variables including your credit score. According to Federal law, you can now get a free copy of your credit report once every 12 months. Generally speaking, the higher your credit score, the better interest rate and loan you can get.
If your credit score is low due to mistakes on your credit report, you can dispute those errors to have them corrected. This could help raise your credit score. If it’s low due to things like late or missed payments, then you can take action to improve your buying habits and eventually raise your score.
Get more tips on improving your credit score.
Mistake #3: Not making your offer look good enough to sellers
If you make an offer on a house, it’s important to make it enticing to the seller. And if your offer isn’t attractive enough, you could lose the home of your dreams to another buyer.
Solution:
To make an attractive offer on your dream home, you need to understand the difference between a pre-qualification and a pre-approval.
A pre-qualification only gives you an idea of how much you might be able to borrow. But you haven’t applied for anything and your financial information has not been verified by the lender. .
A firm pre-approval is a much better way to go. The Canto Team offers a Fast Trac Buyer pre-approval* while you shop for a home. Because much of your information has been verified, you’ll have an edge over other buyers. You’ll have a very good idea how much you can spend on a home and sellers will know you’re serious about your offer. Learn more about our Fast Trac Buyer approval by calling us at (888) 724-7402..
If you do your research and educate yourself by asking a lot of questions, you can avoid these common mistakes and make your first-time home buying experience a positive one.
