New Year’s resolutions for your home buyers in new year

If 2020 is the year for you to buy a home, consider making these five New Year’s resolutions to help you be as prepared as possible to become a homeowner. Planning is important, and simple changes can add just enough to make it happen.

Evaluate monthly subscriptions

Each Month, there is a new subscription service out there. What starts as convenience turns into an endless list of subscriptions we often don’t use enough to justify the costs. Sit down and go through your monthly/yearly subscriptions and cancel whenever you don’t use. Think hard on each one, as sometimes we “think” we need it but really don’t.

Start building 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. Talk to your landlord to ensure they keep track of your on time payments and can give you a letter, if necessary.

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. Have you been on your current job for at least six months, or in the same line of work?

Check your credit

If you don’t know where your credit is currently, now is the 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 impacting your credit negatively, get started on a pay off plan so your score can improve in the new year. There are multiple ways to increase your credit score – speak with a loan officer and let them help you prepare.

Avoid large purchases

Your debt-to-credit ratio makes a major impact on your mortgage approval. If you buy a 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. And, speak to a Realtor, as they can advise you on further steps you can take to get ready for home ownership.