Monday, May 3, 2010

Five Biggest Mistakes Homebuyers Make

1. Not knowing your credit score - The lower your credit score, the chances decrease to negotiate a lower rate an lower fee. Know your FICO score. If your score needs improvement, you can pay down revolving credit balances which can increase your score considerably.

2. Buying a car before a house - Any time customers open a new credit account, auto loan, credit card, etc... their credit score could drop. If there is a new credit in between the approval and the closing, the lender could disqualify the loan.

3. Skimping on a home inspection - Buying a pig in a polk can have serious negative effects at a later date. Many homes purchased in today's market are distressed properties and should be contingent upon an inspection.

4. Not having proper representation - Everyone involved in the transaction (agent, bankers, brokers) have a vested interest in your transaction. You should make sure you have someone that represents just you.

5. No budgeting for insurance - Most homebuyers just don't understand insurance, what it covers, or the various types of coverage. Standard policies cover theft, wind, fire, lightning, and hail. There is no coverage for earthquakes, flooding, or neglect in maintenance. You should also explore a rider for additional insurance.

If you are looking for a home in today's market, we can help. Give us a call at 763-784-3400 or visit our website at