10 Credit Mistakes to Avoid as a First Time Home Buyer
You are very happy and interested in owning your home through credit facilities, and then you decide to rush into the transaction without considering the important issues surrounding the mortgage and financial situation. This might be dangerous because there are several credit mistakes to avoid as a first time home buyer. As you prepare to buy your first home, you should remain focused and analytical to avoid the following credit mistakes.
1) Not Checking Your Credit
This is one of the frequent credit mistakes to avoid as a first time home buyer. It is through your credit position that you will get the best mortgage terms and interest rates.
2) Getting a New Credit when You Get Your Mortgage
Acquiring a new line of credit, especially when you get the mortgage could be risky because it affects your credit score.
3) Ignoring the Overall House Payment
Another common credit mistake the first time home buyer will want to avoid. In fact, one should realize that paying rent for a longer time will eventually become expensive than actually buying a home.
4) Avoiding the Pre-Approval
Although many first time home buyers put off the mortgage pre-approval until after they found their dream home, it is significant because it helps you evaluate whether you actually meet the financing of the mortgage.
5) Failing to Prepare Your Assets
This is one of the common credit mistakes to avoid first time home buyer. Here, most first home buyers do not show their liquid assets to the potential lenders.
6) Job Hopping
As one of the credit mistakes to avoid for the first time home buyer, job shifting could affect your income consistency and stability, thus could make you lose the credit facility.
7) Inadequate Shopping for Mortgage Facilities
Most first time home buyers will do don’t spend more time to shop around for reliable and ideal credit facilities. Mostly, you might make the wrong choice for your mortgage facility.
8) Exotic Mortgage Plans
Often, shopping for foreign mortgage plan is one of the credit mistakes to avoid first time home buyer. This is because the mortgage might not be workable for you.
9) Ignoring to Lock your Rate
This really affects the first home buyer because you may think you have enough money and strong credit for making down payment.
10) Not Reading the Mortgage Document
This is also one of the credit mistakes to avoid first time home buyer because the mortgage document spells out the terms of agreement.
Download "The Road to Mortgage-Ready Credit" at the button below to get yourself and your credit ready for buying that first home. The free guide covers explanations of credit, tips on how to improve your FICO score and more.
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