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New Year's Resolutions That Can Help You Become a Homeowner

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This is the year! The year you stop paying rent and become a homeowner. To help you achieve that goal, keep these New Year’s resolutions and you’ll be on the track to homeownership.

  • Save Regularly – Buying a home can be costly when you start factoring in an appraisal, home inspection, down payment and closing costs. Consider setting up a bank account specifically for purchasing a home and make consistent deposits. Not only will you accumulate the necessary funds for home buying, you’ll be able to show a lender you can afford homeownership.
  • Check Your Credit – Don’t wait until you apply for a mortgage to find out that you have unpaid medical debt, use Credit Karma for free and review your credit score and history. Doing this early-on in the process will give you time to take care of any incorrect information or payoff some debt.
  • Job Hopping – It’s important to have steady employment for at least the last 2 years when applying for a mortgage. A lender will likely find it to be  acceptable if you did change jobs but remained in the same field with a reasonable explanation for changing employers.
  • Avoid Large Purchases – Taking on a large vehicle payment could increase your monthly debt and disqualify you for a mortgage. Be on the safe side and wait to replace vehicles after you close on your new home.
  • Reduce Debt – When you see your credit report you may be surprised at how those low monthly payments add up.  Lenders compare your monthly debt to your income to determine how much home you can afford. Pay down credit cards and any other revolving accounts, this will help to reduce your monthly debt as well as to increase your credit score.

These hit the biggest barriers to homeownership so if you can keep these resolutions you’ll be a homeowner in no time.