Is Your Goal to Buy a Home in 2019?
Here are 5 Resolutions to Keep.
It’s that time of year again, time to set goals to ensure the upcoming year is a success. If buying a home is on your list for 2019, here are 5 resolutions you will want to keep.
Make Saving a Priority
If you are planning on buying a home within the next 12 months, first determine how much you will need to save for a down payment.
Are you overwhelmed at the thought of saving the traditional 20%? There are several loan programs available that only require 3% or 3.5%. There are also zero down loans and down payment assistance programs available. So don’t let the idea of saving 20% discourage you from your goal.
Read: Step Forward Down Payment Assistance is Available for Michigan First Time Buyers
Even if you choose 100% financing or a down payment assistance loan, still make saving a top priority. As a homebuyer, you may encounter unexpected repairs and expenses. It’s just an overall good idea to leave yourself some financial wiggle room. So in 2019, avoid large purchases and try to tuck away as much savings as possible.
Read: Money Saving Tips for Your Down Payment
Check Your Credit, Make Adjustments if Needed
Your credit score will have a huge impact on your approval for a loan and will affect your interest rate. First you will want to see where your score is at and then make improvements if needed. You can have a Michigan Mortgage lender run your report or there are several free apps and online services.
Checking your credit should be one of the first things you do because if there are any derogatory marks, they may take some time to resolve.
Read: Improving and Maintaining Your Credit Score for a Michigan Home Loan
Avoid Changing Jobs
Employment history and income are two major factors lenders consider when determining loan eligibility. Clearly some career changes are unavoidable, such as a lay off or other situation. However, if you are contemplating a career move, you may want to hold off until after you purchase your home if possible.
A steady income and employment history makes it easier for lenders to forecast your future income whereas gaps in employment may throw a red flag.
Avoid New Subscriptions, Instead Pay Down Debt
Not only will committing to new monthly payments keep you further away from your savings goals, they will also count as new debt, which is something you will want to avoid when buying a new home.
Debt-to-Income ratio is another consideration when determining your approval. So instead of acquiring new debt, paying off any existing debt should be another priority. If you have any credit cards with large balances, try to pay those down as well because credit card utilization will have a huge impact on your credit score.
Consult with a Michigan Mortgage Lender
Buying a home on your own is no easy task, especially if you are a first time buyer. Consult with an experienced Michigan mortgage lender to help you navigate through the process and guide you through all of the resolutions above. For example, if you have any debt, a professional will be able to determine which items to pay off first, in order to make the most impact on your credit score.
Julie Krumholz has over 30 years experience in the mortgage industry. She has worked in underwriting, quality control, processing, closing and loan origination. Her comprehensive background allows her to advise clients with unusual expertise.
Contact Julie Krumholz Today: 586-382-5482
