First-time homebuyers are entering a buyer’s market. With the lowest interest rates in many years and property values ​​at an all time low, if you can afford to buy, now is the time! But, even in a buyer’s market, there are many mistakes first-time buyers make that can be easily avoided.

They don’t check your credit. The three big names in credit reporting are Equifax, TransUnion, and Experian. These three companies allow you to check your credit for free once every 12 months, and also provide you with the full spectrum of information that home lenders will see. Be sure to check your credit report and make sure all information is accurate and up-to-date. Also, if your credit is in bad shape, know that you can add a few lines of explanation to your credit report, which may make lenders a little more willing to give you a mortgage. Explanations like “I was in the hospital for a month and fell behind on my car loan in February” or “I was unemployed for two months and missed a credit card payment” can go a long way in helping lenders to know your situation during the credit period. flashes

It doesn’t improve your credit. Improving your credit is not difficult, but it does take a lot of time. Since property values ​​are forecast to drop over the next two years, you can use that time to raise your credit score to get a better rate. Make sure you pay all your bills on time and pay more than the minimum on debts like student loans, credit cards, and car loans. Don’t take out any new loans at that time; Improving your debt-to-income ratio can also improve your chances of getting a loan. Keep your debt-to-income ratio below 36% for the best chance of getting a loan.

Not getting pre-approved before buying. Getting pre-approved for a loan is a great idea. Be sure to find out what rate you will get, which will allow you to estimate very accurately what your monthly payments will be. Getting pre-approved for a mortgage will also save you from wasting time; Imagine the frustration if you find a home you love, start the paperwork, only to find out you can’t get approved for that home.

Not researching first-time homebuyer programs. First-time homebuyer programs are state, local, or nationally sponsored programs to help first-time homebuyers obtain a home. These programs can help you get a better interest rate, even if your credit has taken a bit of a nosedive.

Don’t go shopping. Be sure to look for a reliable real estate agent and a good interest rate. Not all banks and lenders are the same! Be sure to check with your banks, online creditors, and a broker to find the best interest rate. Just a few points can make a big problem in the next thirty years! Also, a good real estate agent can make a big difference. Be sure to check with the Texas Association of Realtors for a trustworthy and ethical real estate agent. Also consult the fees of each real estate agent before deciding.

Buying a home for the first time can be stressful and chaotic. Don’t forget the most important rule; ask for advice! Almost everyone you know has been through the home buying process. Be sure to ask your friends and family for advice.