4 Homeownership Goals for the New Year

December 20, 2018 By , ,

Goals that can get you closer to Homeownership in 2019

Is your big goal for 2019 to buy a home, but you don’t know where to start? You can start with a few smaller goals to get you closer, faster. Here are some steps you should take to make sure you are in the best state financially to make a home purchase.

Improve Your Credit Score

One of the main factors that indicate your financial wellness is your credit score. A credit score helps the lender know if you are a reliable investment and helps in determining how much loan you are eligible for.

To make sure you get your best possible rate and loan type, it is never too early to start improving your credit! Make it a goal in the New Year to increase your credit score as much as possible by:

  • Keeping your credit card balances low or eliminating them altogether.
  • Pay your bills on time.
  • Avoid opening new lines of credit.

Click here to find out for more credit score improvement tips.

Make Saving Your Priority

Instead of just thinking about saving, why not start the New Year off right with a resolution to jump-start your savings? Start putting away more for your down payment on your first home.

There are many tools available to help get you there, like our mortgage payment calculator that can help you decide how much you should put away. But the best way to truly know how much you can afford, and how much to put away, is to talk with one of our helpful mortgage bankers.

We offer complimentary consultations to help you understand your financial situation and what steps you’ll need to take to get into your dream home. Contact us today to set up an appointment.

Pay Down Your Debt

While improving your credit score and having a larger down payment can help you secure a better rate, your debt-to-income ratio (DTI) is still an essential factor for lenders.

This new year, commit to paying more toward credit card debt, medical debt, and other debt streams, not only for your DTI but for your overall financial health. With fewer dollars owed, you will be in a better position to afford a mortgage once you buy a home!

Avoid Job Hopping

Employment history is not something everyone expects to have a part in evaluating a mortgage application, but it does carry weight.

A new job may be a good career move for you at the moment, but if you plan to buy a home this coming year, you should understand that it can become a “red flag” to some underwriters.

Steady job history and few or no gaps in employment over the past two years are ideal. This helps to forecast your future income and ability to repay a mortgage.

If you do get a new job while shopping for a home, tell your lender as soon as possible. It doesn’t mean you won’t qualify for a mortgage, but you will want to be prepared to show extra documentation.

What Now?

No two mortgages are the same, because no two people are the same. The best way to be sure about reaching your goal of homeownership is to contact one of PRM’s knowledgeable mortgage bankers and allow them to help you asses your current situation and what steps to take to reach your goals.

Contact us or fill out the form below and we will contact you about making your 2019 goals happen.

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