Avoiding Common First Time Buyer Mistakes

Many first time home buyers are taking advantage of historically low interest rates and low home prices and buying a home this year. But there is a lot that goes into such a major decision, and many first time buyers fall victim to some common home buying problems. These pitfalls can easily be avoided with some knowledge and research, and the real estate pros at the Equifax Finance blog get you started off right foot in their recent article, “First-Time Homebuyers: The Four Mistakes You Need to Avoid.”    

• Know your credit score: Knowing your credit score will let you know whether or not you’ll be able to get financing and favorable financing terms/interest rates. If your score is too low, you may not be able to get financing at all. Even if you think you should have good credit, you should check it to confirm that and look for any errors in your report. You may find reporting errors or signs of identity theft; so check your credit as early as possible in your home buying process, so that you know where you stand and have plenty of time to correct errors (if you find any).
• Get prequalified: Get prequalified to find out just how much you’ll be able to afford. Taking this step will save you time down the road, and lets your agent know that you are a serious buyer. It also lets sellers know that you are a serious buyer, which could give you a leg up against other buyers, if it comes down to a bidding war.
• Know home prices: Do research on home values and home prices in your area. This will help you know how much you can expect to spend on certain properties, and can help you get a better deal, if you find a home that is overpriced for your area. You can find sales prices of homes listed online, but you should also ask your agent to give you recent sales figures on homes in your area. He or she can also help put home prices into perspective for you. 
• Get the right team in place: Finding an agent that you trust and work well with is critical. This is a major purchase, so you need someone that you trust to give you the information you need to make good decisions. Find an agent by asking for recommendations from friends, coworkers, family and neighbors for agents that work in your area, are knowledgeable about homes in your area, experienced and trustworthy.

Get the full article and more real estate tips on the Equifax Finance blog and get financial tips on topics like taxes, credit, preventing identity theft and more, all on the Equifax Finance blog!