Charlotte Home Buyers: 3 First-Time Home Buyer Mistakes and How to Avoid Them
There are a few mistakes that many first-time home buyers make. Here are three of the most common mistakes and how you can avoid them when purchasing your first Charlotte home.
Mistake #1: Assuming that your credit is good. The information in your credit report determines whether you can get a loan — and how much interest you will have to pay – so it pays to be certain your credit reports are accurate. Check your credit reports for free from all three credit reporting companies — Equifax, Experian, and TransUnion — to make sure everything is correct. If you find errors, contact both the credit reporting company and the information provider (the person, company or organization that provided information about you to a credit reporting company) involved in the errors and ask them to fix the credit report errors. A qualified lender can also assist you with the repairs and should not charge you anything to do this.
Mistake #2: Getting pre-qualified, not pre-approved, for a loan. It's far better to be pre-approved for a loan than to be pre-qualified. Here’s why… With pre-qualification, your lender does a preliminary evaluation of your ability to pay for a home and gives an estimate of the mortgage amount they’ll give you. The lender does not verify the information you provide. With a pre-approval, your lender verifies your income, assets, debts and credit history. They provide you with written confirmation of the mortgage amount for which you’re approved. That written confirmation demonstrates to the seller that you are committed to buying; this can give you an advantage over other buyers.
Mistake #3: Allowing emotions to influence your decisions. Buying a home is an investment. It needs to be treated as any other investment. You don't buy stocks because they are pretty and you shouldn't pick your Charlotte home that way either. Make sure the home you buy fits your needs and allows you room to grow over the next few years. As with any sound investment, time is the key to a good return.
If you are a first-time home buyer, I would be happy to help you find (and get the best price for) your first Charlotte home. Give me a call or email me today.
Originally posted at http://www.icharlotterealestate.com/charlotte-home-buyers-3-first-time-home-buyer-mistakes-and-how-to-avoid-them/
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Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
Debe - Excellent advice for first time home buyers. I can't tell you how many buyers I've talked to on the phone about contacting a lender to get pre-approved who tell me that they won't have a problem getting a mortgage because their credit is good and want to look at homes first. I went down that path once and learned never to do it again.
These are excellent tips for first-time home buyers, Debe. Simple but necessary.
Debe --- As Realtors, it is our job to explain, and often times explain again, the ins and outs of purchasing a home. It's a lot more than just getting in the car and looking at houses.
Debe, it is so important to start the financing process first! Great advice and post....
Debe - All of the first time home buyers I know would never make these mistakes, because they know everything. I'm usually just someone to let them in the door of my listings, they don't need a buyers agent because they do all their own research on the internet. I have a lot of fun with these guys. I suspect it's the same feeling a cat has when playing with a mouse.
Debe,
Larry's comment #5 made me laugh out loud! Good post!
Mike in Tucson
Good morning Debe,
Excellent post! Great job in pin pointing the obvious but most necessary. These three are excellent points and need to be heeded by all first time home buyers :).
Same here, Mike! Too funny! Thanks everyone for your comments! I love first time home buyers and do find that these three things are the first things that I have to really get my point across about their new home purchase. It's always good to start with a clean slate and do it right from the beginning. You'd hate for Larry-the-cat to get ahold of you!
Keeping the emotion out of Real Estate is tricky for everyone!