5 Big Mistakes Homebuyers Make

1. Waiting to Sell Your Home

With our current market conditions, it is now very important to sell your existing home prior to purchasing a new one. With the large inventory of homes for sale, the rise in interest rates, and the tighter lending standards, it is taking longer to find qualified buyers. By getting an offer on your home with a qualified buyer prior to purchasing a new one, you are reducing the costly risk of carrying two mortgages for an extended period of time.

2. Not Knowing Your Credit Score

If you are thinking of purchasing a home, it is important to know your FICO score.

Why is this important?

The lower your FICO score, the higher your costs of borrowing. Meaning, lower scores equals higher interest rates and higher insurance premiums.

Remember, if you do have a lower FICO score, there are great mortgage products available to you at low interest rates.

Contact us for more information on these products.

3. Making a Large Purchase on Credit

When a consumer opens new credit accounts--store credit, auto loan, credit card, etc.--their FICO score could drop, according to Craig Watts, a spokesman for Fair Isaac, the creator of FICO scores.

Do not open new accounts while in the process of purchasing a home. Lenders periodically check your credit score during the process to make sure that there has not been a drop in your credit.

4. Not Having a Home Inspection

Some homebuyers, short on money, choose not to have a home inspection. This is a big mistake. The home inspector can find problems that otherwise would not be seen, such as foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning. The cost of the inspection could save you much time, money, and headaches down the road.

5. Not Hiring a Great Real Estate Agent

When buying a home, keep in mind that this will most likely be the largest purchase you will ever make. This makes it extremely important to hire a real estate agent that it very knowledgeable and experienced. A great real estate agent will provide you with up to date information on the market and help you determine the current market value of the home you are interested in. A great agent will also posses skill in negotiating on your behalf and will look out for your best interest throughout the entire process.

If you are looking for a great real estate agent or would like more information please contact the ACTION SALE GROUP.

Some Information Provided By CNNMoney.com