Buying a home in Orange County can be a life changing experience because, you’re moving from being a renter with no equity in the home that you’re living in, to an owner who has all of the responsibilities and privileges that come with home ownership.
In part one, of this four part series we’re going to cover the top mistakes that buyers make when buying a home just so you know what not to do during the process of buying their first homes.
Neglecting Your Credit Score
The first mistake many buyers make when trying to purchase a home is moving forward with trying to get a home loan without first examining their credit score.
Why is the credit score important? When a home buyer has a credit score under 650 they can expect to pay more for their mortgage loan over the lifetime of that loan, Compared to a home buyer who is fortunate enough to have a credit score that’s higher. If you want a decent rate, you should have a credit score of at least 680. If you want the BEST rates, shoot for a score between 780 and up.
Making A Big Ticket Purchase Before Buying A Home
There’s nothing wrong with buying a big-ticket item like a car or a boat but as a potential home buyer, you shouldn’t make that big-ticket purchase right before buying a home. Why? Every time we purchase a big item, our FICO score drops and before purchasing a home the goal is to have a high FICO score without other big items on the credit file that could lower the FICO score. Besides… why do you want to have to move more stuff like a dining table or china cabinet from your current home to your new home? Your friends won’t like you very much, and neither will your credit score.
Skipping The Home Inspection
One of the “cardinal sins” of buying a home is skipping on the home inspection to save a few bucks. This is a mistake that a potential home buyer should never make because, the home inspection will help the home buyer to find flaws in the home and save themselves thousands of dollars in costly repairs that the owner should be responsible for making.
To learn more about the top mistakes that buyers make, contact Fred Sed & Associates today by calling (949) 272-0125.