As we usher in the promise of a new year, many of us contemplate resolutions that bring positive change into our lives. If buying a new home is on your list of goals for 2024, we've got you covered. In this guide, we'll walk you through five crucial steps to ensure you're in the best financial shape to embark on the exciting journey of homeownership.
Step 1: Start Saving for a Down Payment (Boost Your Savings)
The hurdle of saving for a down payment is a common concern for prospective homebuyers However, here's the good news: 3% down payment options are now common! The key is to kickstart your savings early. Check out our website or give us a call at 888-616-9885 to explore tailored loan options that suit your financial goals.
Need some quick saving tips? We've compiled a list of 10 easy ways to help you get started.
- Save your raises, bonuses, and tax returns
- Transfer a fixed amount into a special savings account every month or even every paycheck
- Consider a one-year vacation hiatus
- Negotiate a raise
- Trim unnecessary expenses
- Liquidate investments
- Explore part-time work opportunities
- Seek financial assistance from relatives
- Get a financial gift
- Inquire about down payment assistance programs
Remember, the earlier you start saving, the better.
2. Check and Improve Your Credit Rating
Your credit score is the foundation of your mortgage application. Strengthening it can unlock better mortgage options. Learn the ropes of good credit practices, from tracking your spending to using credit cards wisely. No matter what your current score is, there's always room for improvement. Foster good credit habits by:
- Recording your spending
- Staying current on debt payments
- Avoiding exceeding your credit limit
- Using credit cards judiciously
- Postponing significant purchases (e.g., a new car or furniture)
3. Tame Your Debt
Manage your debts strategically to positively impact both your credit score and debt-to-income ratio. Prioritize paying down debts to enhance your financial profile and afford more home. Bottom line, the less debt you have, the more home you will be able to afford.
4. Find Your Dream Home:
With your finances in order, it's time to identify your dream home's key features. Consider factors such as:
- Number of bedrooms
- Number of bathrooms
- Square footage
- Location
- Neighborhood
- Schools
- Local traffic/public transportation
5. Get Pre-Approved for a Loan:
Before embarking on your home search, secure a pre-approval. This involves a comprehensive assessment of:
- Credit score
- Income and finances
- Tax returns
- Employment status
- Current debts
A pre-approval not only clarifies your budget but also signals to sellers that you're a serious and prepared buyer.
Bottom Line:
Ready to turn your homeownership dreams into reality? Click below to start the pre-approval process or call our expert loan officers at 888-616-9885 for personalized assistance.
With these steps, you're well on your way to making your dream home a reality in 2024. Happy house hunting!
