The new year is finally here… Goodbye 2020, hello 2021!
We all know that with the new year comes all of the resolutions. Maybe it’s your resolution to eat healthier? Maybe to learn more? Or, it could be to buy your dream home? How will you achieve these resolutions?
While we could give some great tips on exercise and eating healthy, our focus is to get you into that new home! Here are 5 New Year’s resolutions to help with that goal.
Limit Subscription Services
These days, the list goes on and on when we talk about the monthly subscriptions we have. Netflix, Hulu, Disney+, Apple Music… You get the picture. While they are convenient and nice to have, they can certainly add up. Even if you pay them off on your credit card each month, you can be at risk for credit utilization if your credit is pulled mid cycle.
Consider cutting out the subscription services you use least to help save for that home.
Check Your Credit
Keeping an eye on your credit score is something you should be doing regularly, but especially before purchasing a home. Your credit can essentially make or break you and has a HUGE impact when it comes to the home buying process.
Monitor your credit frequently and make sure you’re not seeing any fraudulent activity that could keep you from achieving your New Year’s resolution. If you’re unsure of the state of your current credit, look at websites like, Credit Karma, that offer free monitoring and reporting.
Build a Strong Credit History
Speaking of credit, you have to keep an eye on your score yes, but you also need to have a history built up. If you don’t, now is the time to start. When checking over your loan application, one of the first things we and most lenders look at is your credit history. We as lenders need to make sure that you have a good track record of paying bills in full and on time. This tells us that you’re less of a risk and are a responsible borrower.
And, if you don’t have credit, know that the lack of can make the process significantly difficult. Although, it’s not impossible.
Avoid Jumping from Job to Job
Another thing we look at is your job history and income. These two things are integral to the mortgage approval process. We need to see that you have a steady job history with little gaps in employment. This helps lenders feel more secure about your future income.
If you do happen to get a new job while searching for a home, be sure to let your lender know as soon as possible. This doesn’t mean you’ll be disqualified, it may just mean you’ll have to show extra documentation. Additionally, if you were at a job that was based off commission and switch to one that’s salaried, know that it may help your application.
Hold Off On Larger Purchases
You know that brand new car you really really want? It might not be a bad idea to wait on that. Taking on a large amount of debt when home shopping is something we recommend avoiding. This is due to your debt-to-income ratio. It can heavily affect how much money a lender is willing to let you borrow. Keeping your debts low can help make the home buying process much smoother.
Happy New Year from Mid America Mortgage!
Know that your friends at Mid America Mortgage are rooting for you and your resolutions! We’re standing by to provide any guidance and the best service if you’re in the market to purchase a home in 2021. Also, be sure to take advantage of our online tools like our mortgage loan calculator. It can provide you with an estimated payment based on your down payment, interest rate and payment period.
Here’s to buying your perfect home in 2021!