How To Improve Your Home Buying Odds
Considering purchasing a home this year? We gathered some information to help you keep your finances in check and stay ahead of the real estate game.
1. Keep Tabs On Your Monthly Subscriptions
While monthly subscriptions services can be super convenient, they can really add up! If you’re in the process of searching for a home, consider keeping these to a minimum. Try a few months without Netflix and Hulu…it won’t hurt. We promise!
2. Avoid Changing Jobs
Income and employment are the biggest factors a lender will look at when you are applying for a mortgage. While a new job may be a great career move, it can cause some flags to the underwriters. It’s important to have a steady employment history with very little gaps over the past two years. If you do get a new job while looking for a home, keep your lender informed throughout the process. It doesn’t mean you won’t qualify for the loan, you just need to be as on top of it as possible.
3. Build Your Credit History
Lenders will take a deep dive into your credit history, so now’s the time to build it. They also prefer borrowers who pay their credit cards on time because that typically means they are less of a risk than some. If you don’t have much credit, it may be more difficult to get a home loan, as well as more time-consuming. Even paying your rent, utilities, student loans, and phone bills on time can provide proof to the lender that you are a prime candidate.
4. Steer Clear Of Large Purchases
When you’re buying a home, it’s a good idea to avoid taking on large amounts of debt. Even if it’s planning a vacation a few months from now or buying a new car. Your debt-to-income ratio can really affect how much money a lender is willing to give you. Also, keeping your debt to a minimum can make the buying process a lot smoother! Cleaning up your finances can seriously improve your odds of moving into a new home. Consider looking into some online affordability or mortgage calculators as these can be helpful resources in your journey.
5. Check Your Credit
Actually checking your credit goes right along with building your credit history especially since it can have such a huge impact on purchasing a home. A low credit score can affect how much money a lender is willing to loan you and your intended interest rate. Even a few percentage point differences can cost you thousands over the life of a home loan. Keep an eye on your credit closely and monitor it for things such as fraudulent activity because it could really cause a delay in your application process.
Need more information on improving your odds of purchasing a home? Reach out to us today to get in touch with our preferred lenders and speak with a real estate agent. Just click here.
Source: Zillow.com
