Embarking on the journey to homeownership begins with setting your intentions! Whether it’s purchasing your first home, upgrading to a larger space or buying an investment property, these five new year resolutions will set you up for success!
Improve Your Credit Score
Your credit score is a crucial factor in the mortgage approval process. In the new year, commit to enhancing your creditworthiness by reviewing your credit report, addressing any discrepancies and implement strategies to boost your score. Timely payments, responsible credit use and reducing your balances will contribute to a healthier credit score in no time!
Curtail Unnecessary Purchases
No matter how you slice it, buying a home is a significant financial commitment. For many, trimming unnecessary expenses from your budget is unavoidable. Take some time to monitor your spending and identify where you can redirect some funds to your homeownership goal.
Pay Down Your Largest Debts
Reducing your existing debt will enhance your financial stability and increase your buying power. Prioritize paying down any high-interest debt, such as credit cards or personal loans. With a lower debt-to-income ratio, you’ll be more likely to qualify for a home.
Build a Home Fund
Dedicate a savings account for all homebuying-related expenses. Aside from a down-payment, you’ll need to factor in closing costs, property taxes and potential home improvements. Remember, even the smallest contributions add up over time!
Stay Current on Local Housing Market
Empower yourself as a homebuyer by staying informed on the housing market. Dedicate some time to understanding current housing trends, interest rates and local real estate. By having a better understanding of the industry, you’ll be better suited to make the best decisions when it comes time to purchase your home.
By adopting these resolutions, you’re not only setting yourself up for success as a homebuyer, but you’re creating healthy financial habits that will benefit you long after you’ve secured the keys to your new home!
To learn more about the homebuying process, continue to explore our blog!
