If 2020 is the year for you to buy a home, consider making these 5 New Year’s resolutions right now so you can be as prepared as possible to become a homeowner.
1. Cut down on Monthly Subscriptions.
With each month, there is a new subscription service out there. What starts as convenience turns into an endless list of subscriptions that we often don’t use enough to justify the costs. Sit down and go through your monthly/yearly subscriptions and cancel whatever you don’t use. Set aside that extra money with the rest of your savings so your down payment can continue to grow.
2. Build a Better Credit History.
Paying bills on time and paying off debts will help create a solid credit history. Make sure you have some utilities or rent in your name so that you can pay them on time and continue to build a solid credit history.
3. Avoid Changing Careers.
Alongside income, your employment history will be a major factor during your mortgage application evaluation. While a new job could be a good career move, most evaluators are looking for a steady job history with little to no gaps in your employment over the last few years.
4. Check Your Credit.
If you don’t know where your credit is currently, now is the best time to check. Most credit sites will tell you what is impacting your credit, and you can use those tips to change your choices heading into the new year. If large debts are negatively impacting your credit, get started on a payoff plan so your score can improve in the new year. Get in touch with a great lender today who can also advise you.
5. Avoid Large Purchases.
Your debt-to-credit ratio makes a major impact on your mortgage approval. If you buy a brand-new car or fund a large vacation, that ratio could sway in the wrong direction. If you want your lender to be willing to give you the maximum amount possible, make sure you aren’t making any large purchases heading into the new year.
If you need more tips to help you prepare for buying a new home this year, reach out to [email protected] anytime.
