1. Not checking Your credit
Even if you think you are 6-12 months away from buying a home it’s crucial that you check your credit regularity. Sometimes there can be discrepancies on your credit report that need attention prior to buying a home. Everyone is entitled to one free credit report per year without an impact on your score. At annualcreditreport.com you can check your report and if there were any issues you can resolve them.
2. Not knowing what the monthly payments are for the maximum you qualify for
Just because someone is pre-approved for a certain amount doesn’t mean that they will be comfortable paying the monthly payment on a house at that price. It’s important you communicate with your realtor and let them know a monthly payment you are comfortable paying. They will be able to determine what homes fit within that monthly payment.
3. Not being available to tour homes
Homes are listed 7 days a week, so if you are available to tour only on weekends than you are limiting yourself and putting yourself at a disadvantage compared to the buyer who is available to tour all 7 days during the week. By touring a home that you are interested quickly you have the ability to put an offer on the home before other buyers have the chance to even see it.
4. Working directly with listing agents
Listing agents already have established a professional and personal relationship with the sellers. They have a legally binding fiduciary responsibility to work for the sellers best interest. A common misconception is that by working with the listing agent than you will get a better deal however that couldn’t be further than the truth. It’s important to have an agent that works for your best interests. By working with the sellers representation directly they do not have to tell you certain things about the home and they are trying to get top dollar for the seller. By getting you own representation you will have someone in your corner helping you and watching out for you best interests.
5. Obtaining credit after getting pre-approved
After getting pre-approved it’s important that you don’t take out any additional credit which could affect your score and possibly prevent you from qualifying for the loan program you were approved for. It’s important that you don’t apply for any store cards, credit cards, cars, loans, etc since it could jeopardize you being able to buy a home. If something is absolutely neccessary than speak with you loan officer before doing anything.