3 Fatal Mistakes Home Buyers Make

How can you make sure your clients won't fall into the common pitfalls when buying a home? In the latest article credit.com published featured some of the biggest home buying mistakes buyers usually commit. Here are the top three mistakes in their list.

1. Fixing credit score before buying a home

Home buyers can make the situation even worst than good if they don't consult their mortgage loan officer first before fixing their credit. Gerri Detweiler, credit.com's personal finance expert says ",Even paying down credit card balances, which is a good thing as far as your credit scores and debt ratios are concerned, could be a problem if it leaves you short the cash you need to qualify to get the loan."

2. Not considering the future when buying a home

Some home buyers are just thinking of today and not looking ahead of the future when purchasing a home. When buying a home you must think what you want out of a house not just today but five or 10 years down the road. If you are planning to have big family and want to take your kids into top schools, then you should consider buying a bigger home near the city. Also, you should think of how long you will probably staying on the home, which can help you determine the right type of mortgage for you.

3. Not enough research on financing

Shopping for a home before the mortgage? Not in the current market. This is the common fatal mistake buyers make. Before you start your home shopping make it sure that you should get prequalified for a mortgage so that you can know your limits and what you can only afford. "The time to make decisions about your mortgage needs is not during this 10-day window; at most, this is time to shop for rates and fees and such. Evaluating your credit, deciding on a product you prefer, how much down payment you feel comfortable making, whether you want to pay fees/points (and/or how much) and even shopping for a lender (getting pre-approved) should happen well in advance of even wandering through the market looking at houses," Gumbinger says.

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