Buying a home is usually the biggest purchase most people will ever make, however many people go into it completely blind. Below are 4 common mistakes made and how to avoid them.

Not Knowing your FICO Score

Before you do anything else, you must find out exactly what your FICO score is. If you find it is less than ideal, it's time to initiate a campaign to raise it. Many borrowers ignore this step and end up with very large interest rate quotes.

Your next step is to pay down revolving debt balances to no more than 30% usage. That will help raise your score significantly.

Buying a Car Before a House

According to Craig Watts, a spokesman for Fair Isaac, the creator of FICO scores, anytime consumers open new credit accounts -- credit card, auto loan, etc. -- their FICO score could drop,

"Hence the admonition to not open other new accounts while your mortgage application is in process,"" he said.

A big purchase would use up a considerable proportion of a borrower's total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing.

""The lender will likely slam on the brakes if the applicant's credit scores have suddenly dropped below the minimum required for the requested loan rate,"" Watts said.

Bypassing the Home Inspection

It's vital to find all the costly flaws before you buy. Many homes on the market today are distressed properties, which means foreclosures and short sales. That only increases the importance of good inspections. ""The owners usually didn't have the money to keep up these homes,"" he said. ""There's a

Often homebuyers, who might be low on cash, skimp on the inspections and look for the cheapest way to go. That can lead to disaster. ""The cost of repairs far exceeds the cost of inspection,"" said Tamny.

Not Budgeting for Insurance

Don't underestimate insurance costs and fail to budget for them.

Many homebuyers don't understand what is and what is no covered. Standard policies pay for theft and wind, fire, lightning, hail and explosion damage. Not covered is flooding, earthquake damage or problems caused by neglect of routine maintenance.

""The most important thing is before you buy a home, find out what it will cost to insure it,"" says Jeanne Salvatore, spokeswoman for the Insurance Information Institue, ""Insurance needs to be calculated into the cost of owning a home. Unlike a mortgage, which you can pay off, you'll be responsible for the insurance costs forever.""

For flood insurance, most buyers use the National Flood Insurance Program. Earthquake coverage may be available through a state authority or some private companies.

Find some great homes in The Woodlands." Posted by Tamborrel Bulox Team on

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