It’s 2020! Time to get on those resolutions, amiright? If you’ve resolved to become a homeowner this year, embrace the fact that you might have let your financial self go this past year, do a quick warmup, and get ready because we’re getting into the four things you need to do to get in shape… to buy that house. #GetSwole
Get preapproved. A lot of people think that Step Number 1 is finding a house. NO. First, you MUST get pre-approved so you know exactly what you can afford and how much you need for a downpayment. Your Loan Officer can tell you exactly how much you’ll need to put down. Once you have this magic number, you can set some goals and put a plan in place to reach those goals.
Get out of debt. Debt, man, you’ve got to pay it down, if not for your own peace of mind, but so you can improve your credit score and raise what you qualify for. You also don’t want to take on new debt during the home buying process because that will definitely cause setbacks. Ideally, you would have paid off your debt before beginning this process, but if not, just make sure you’re in a good financial place debt-wise when you buy your home so that you can enjoy your home when you finally move in.
Clean up your credit. So you’re paying down debt, which improves your Debt-to-Income ratio. That’s amazing. But you’ll also need to check to see if there are any negative marks on your credit report that could get in the way. And remember, just because you forgot about your Columbia House CD subscription from the 90s, doesn’t mean the credit bureaus did… so really take a good look at what’s on your report, and resolve any issues.
Save for a downpayment. So now, you save. You get a second job, you stop eating out (so much), you get a generous gift from old Aunt Sally. Whatever you need to do, keep that magic downpayment number in mind and make it happen. The more you put down, the lower your monthly payments will be.
I don’t know about you, but I’m ready for my cool down and a trip to the smoothie bar. If you are ready to get on those 2020 resolutions, we can help. Think of us as your personal trainer who will kick your butt into home buying shape.