What is the mistake almost half of home buyers make?

Is there a way to get an edge over the competition when putting an offer in on a home?

Chief economists have made themselves clear. Now is the time to buy your next home. Their reasoning is a mixture of,

  • Low mortgage rates
  • The decelerated growth of the housing market
  • Job growth and consumer confidence are up.

If you have been putting off looking for home until a better time, now is the time you’ve been waiting for.

Before you start searching for you dream home, check out the following mortgage mistakes that you do not want to make.

3 Mortgage Mistakes to Avoid

  1. Forgetting To Check Your Credit
    Your credit score will have an effect on the interest rate of your mortgage loan. That is why it is recommended that you pull your credit score about a year to six months in advance. This will give you time to get your credit in order if you need to.

    According to Yahoo Finance, AnnualCreditReport.com is the official site for free credit scores. The score is generated from three reporting agencies - Experian, Equifax and TransUnion. Every year, you can request a free credit score.
  1. Failing to Shop Around
    The Consumer Financial Protection Bureau (CFPB) reported that 50% of home buyers do not shop around when looking for mortgages. Why is it important to shop around for mortgage? It is to make sure that you are getting the best interest rate possible

    In an article by MainStreet.com, it is pointed out that mortgage rates could vary by a half of percentage. While that may not seem like a great deal, a half of a percentage could translate into $60 per month. In the first 5 years of the loan, that half percent could translate into $3,500.

    To read more about how interest rates influence your buying power, please see, Low Mortgage Interest Rates Stats What You Need To Know.
  1. Neglecting to Get Pre-Approved
    To get pre-approved for a mortgage, the lender will verify the information that you provided to them. The lender will then offer you a pre-approved amount and interest rate. The amount is not a guaranteed and it is likely that there will be certain conditions.

    Realtor.com points out that it is much better than being pre-qualified. Getting pre-qualified is when the lender gives you an estimate on how much you can borrow.

    Having a pre-approved amount will assist you when it comes to making an offer on that home you love. It can also give you an edge over other offers.

Summary

Could this be the year you buy your first home? Or maybe you will finally sell your current home and move into a home that fits your growing family. If you are a first time home buyer, you may like to read, New Mortgage Programs Require Only 3% Down Payment In 2015.

Are you eager to search for your dream home, but don’t where to start? Please read, How to Start Your Search For Your Dream Home

If you are ready now to begin your search, we would be honored to help you find that dream house. Please call our office today at:

248-348-7200