I FINALLY went to that First-Time Home/Condo Buyers course last night, and got some information. Since I had no prior knowledge on any of this, someone with more mortgage/finance experience could probably critique it, but for me it was a start.
Forgive me in advance for the lengthy post, I'm merely re-typing a few key points from the handout. The class was taught by a mortgage consultant and a real estate consultant and pretty much gave us the top 9 mistakes when trying to purchase, the breakdown of credit scores, biggest financing mistakes, the difference between pre-approval and pre-qualification and info needed for pre-approval.
*Whew* Here goes...
9 Costly Mistakes Many Home Buyers Make:
#1: Not using an Experienced Buyer's Agent
#2: Relying on Inaccurate Sources for Information
#3: Missing the Red Flags when House Hunting
#4: Making An Offer without a C.M.A.
#5: Not Protecting Yourself Legally
#6: Not fully Understanding the Purchase Contract
#7: Not Performing a House, Termite, and Radon Inspection
#8: Not getting a one-year home warranty
#9: Closing on the last business day of the month
(If you want the explanations to any of these, PM me. Or maybe I'll post them again if you guys want that too)
Biggest Financing Mistakes:
1. Not having a plan
2. Falling for the bait and switch advertising or choosing a lender solely on interest rate
3. Using an out-of-town internet company
They also stressed the importance of getting everything in writing, including closing costs, downpayments and personal vs. real property. And giving the seller no more than 24 hours to accept your offer.
Another stressed point was credit. 35% of your credit score is how you pay your bills, 30% is your ratio of balance to limit, 15% is the length of time you've had credit, 10% is the type of credit (a mix is desired) and last 10 is based on inquiries. If your credit score is 720 +, you're golden...
Something I never knew was that auto and mortgage inquiries are different from other types. You can have 20 inquiries from auto or mortgage within a 14 day period and it'll only count as one inquiry since it's evident you're merely being a 'smart consumer'.
So, that's pretty much the cliff notes of the class. They gave a website to learn more information, www. freehomebuyercourse.com.
My fingers will mutiny if I continue on...
Hope some of this helps someone!