7 Critical Home Buying Mistakes to Avoid

1. Make sure that you have your credit checked prior to beginning your home search. Your credit score will be one of the primary determinants in your mortgage qualifying. You must have your tri-merge credit report "pulled" by a mortgage planner to determine your middle score. The middle score is most often used by lenders to qualify an applicant. By having your credit checked early in the process you are able to correct any mistakes or repair any items that may be harming the score. This process can take several weeks so it is important to start this early. A low credit score can cost you thousands of dollars in mortgage interest.

2. Be careful not to make any new purchases on credit. As the prospect of buying your new home comes closer you will begin to think of all the new needs you'll have. Perhaps it's larger so you'll need new furniture. Maybe new appliances or even how a new car will look in the driveway. Don't laugh, if it hadn't been done by my past clients then I wouldn't have mentioned it. Do NOT accumulate new debt before you close on your new home. New debt lowers credit scores and throughs off the deb to income ratio that you were qualified with.

3. Know the Lender's Track Record. It's important to rate your lenders reputation for speedy processing, knowledgeable loan service and meeting contract deadlines. You want to hire a mortgage planner who will treat you the way you want to be treated and has respect for your purchase. One with experience and knowledge of the Loan product that you are choosing. Be careful dealing with an inexperienced person just because they are a "friend or relative". Your lender will be dealing with your hard earned money and home purchase, so you want to be confident that you have made the correct decisions.

4. Do not think there are only 1 or 2 loan options available. Many buyers are unaware of the different loan options available to them. It is easy to see on the news the challenges in mortgage finance and assume that you will need 10% - 20% down payment to purchase a home. There are still excellent home loan programs available even with ZERO down payment. Speak to a qualified Mortgage Planner to review all your options.

5. Be aware of how subtle changes will affect your score. Show caution in having your credit checked. It is important to have it done by your Mortgage Planner for pre-approval but after that be careful. Lenders will view multiple credit checks as a sign that you are trying to obtain credit and will subsequently lower your score. Never close a credit account prior to obtaining your mortgage approval as this will lower scores also.

6. Do not Purposely leave out important credit details. Your Mortgage Planner is on your side. Past credit problems may be embarassing but they will show up somewhere down the road. Be sure to explain everything so you can have a plan of action ot overcome it. Give them the information so they can provide you with the best possible interest rate and service.

7. Not Getting Mortgage Preapproval. Pre-approval is fast, easy and free. A seller will want to see your pre-approval certificate before they begin to negotiate with you. When you have a pre-approved mortgage, you can also shop for a home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

About the Author

If you are in the market to Buy a Home then check out Rob Kosbergs' Detailed FREE Report on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog