Three Mistakes New Homebuyers Make

Three Mistakes New Homebuyers Make

Although the list of mistakes new homebuyers tend to make could fill up this entire page, there are three that seem to stand out among all as being the most frequent mistakes made.

The first mistake people often make is to purchase a new vehicle right before they start looking for a home.  Borrowers looking to purchase a home in the near future, (within the next 6 months to a year), should wait until their home loan has closed before purchasing an automobile.  You'd be shocked to learn that buying a new car can lower your FICO score by 40 to 100 points!

Second, many buyers wait until their lease is getting ready to expire before they begin their home search.  By working with your mortgage consultant well in advance of a move, buyers will be much better informed about the mortgage process and the steps they need to take to secure the best financing.

Third, be careful about letting too many companies pull your credit, since inquiries generally remain on your credit report for two years from the date reported.  It's also a good idea for home buyers who are planning to purchase a home in the near future to discuss their plans with a mortgage consultant who can provide a free credit analysis and help them prepare for homeownership. 

The "Mistake List" could go on and on, but these three stand out, and we see these mistakes made more often than any other.  So if you're going to soon be in the market for a new home, keep these mistakes in mind, and don't let making these mistakes cost you that new home you're hoping for.