First Time Home Buyer Mistakes To Avoid
Purchasing your first home is a special and exciting time in anyone’s life.
It can be both a financial and emotional rollercoaster, and can feel even more intimidating without support. With LeapFrog Mortgage, you won’t have to worry about that. Our team of experts is on hand to keep you from making any first time home buyer mistakes.
Managing Your Credit Cards
One of the best supports working in your favor when it comes to first time home buyer mistakes is your credit. There are an infinite number of factors involving your credit that can influence your chances of securing a good mortgage rate.
One factor is the age of your credit history. The less of one you have, the harder it will be for you. Try keeping any existing accounts open and in good standing. This goes a long way in satisfying lenders and securing favorable rates.
Staying On Top Of Your Finances
Another way to keep your chances of a good mortgage up is to stay on top of your current bills. Be sure to pay on time, and limit any late payments to none. Even one derogatory mark on your credit report can lead to a considerable amount of stress and headache for years to come. These are thefirst time home buyer mistakes you really want to avoid.
Try using convenient, automated features to keep your payments on time. Auto pay is a great feature to guarantee that your funds are sent by their noted due date. Be careful when using these features, though. If you don’t have enough in your account to cover the charge it could result in fees from overdraft, insufficient funds, and more. On top of this, you’ve missed your payment deadline and may be subject to further penalties.
Only Help When You Are In The Position To.
It may be tempting to want to help a friend or family member in need as a guarantor.
And if your credit score is in the position to take the hit, by all means do what you feel is necessary. But do keep in mind that regardless of whether or not you’re actually paying into it, your credit is still held accountable.
For most first time home buyers, it’s not advised to co-sign for someone else. It’s basically the same as absorbing that person’s debt; that’s exactly how it will be assessed when it comes time to apply. This has an overall impact on your chances of getting the mortgage rate you want, and may even set your plans back.
Always Be Skeptical With Mortgage offers
This may sound like a pessimistic view of things, but it’s not a bad tip. Of course, it’s always good to approach all endeavors with a positive outlook. But never be trusting, and never hesitate to subject any offer to the utmost scrutiny to ensure you’re getting your best deal. In fact, any good lender should welcome it.
Ready to get the conversation started on your next mortgage? Contact us today to learn more.