5 New Year's Resolutions That Will Aid Your Home Purchase

A new house for the new year? You can improve your chances of purchasing a home by giving your financial history a thorough makeover.   
Have you given any thought to purchasing a home this year? We have developed a list of five New Year's resolutions that can assist you in maintaining a financial profile that is in excellent form.   
1. Avoid job hopping   
When reviewing a mortgage application, the applicant's income and employment history are two of the most critical aspects for lenders. It's possible that starting a new job would benefit your career. Still, if you want to buy a house in the new year, you should know that job hopping is seen as a red flag by certain mortgage underwriters, particularly if you're switching to a different field.   
It is good to have a consistent employment history with either few or no pauses in your career over the past two years since this allows lenders to more easily project your future income.   
Notify your lender as soon as possible if you get a new job while you are in the process of looking for a new property. It does not necessarily indicate that you will not be eligible for a mortgage; nonetheless, you should be prepared to produce further evidence.   
It could benefit your application if you transition from a job that pays you on a commission or hourly basis to a salaried position that pays the same or more. The ability to demonstrate consistent and reliable income is often seen favorably by lending institutions.   
2. Place restrictions on services available via monthly subscription   
The convenience of monthly benefits is undeniable, but the associated costs can pile up. Even if you pay off your credit card balance in full every month, if your credit report is pulled in the middle of the cycle, you could be penalized for having a high credit use ratio.   
If you are considering purchasing a home this year, you should consider reducing the number of monthly subscription services to save money.   
3. Establish an excellent credit history for yourself.   
Your credit history is one of the first things a lender will look at when deciding whether or not to lend you money. Because it indicates that you are a responsible borrower and less of a risk, lenders favor borrowers with a history of paying off credit cards and other bills on time. This is especially true for student borrowers.   
If you do not have a credit history, obtaining a mortgage loan may be much more complex and time-consuming, but it is not impossible. The ability to demonstrate to a potential lender that you have a history of successfully managing monthly payments, such as by paying your rent and utilities on time, as well as your student loan debt or cell phone bill, is essential.   
4. Make sure you check your credit.   
Your ability to buy a home may significantly influence your credit score. A low credit score can harm the amount of money a lender is willing to lend you and the interest rate they will charge you for that loan.   
A difference of even a few percentage points in an interest rate can result in a difference of thousands of dollars over the life of a loan. Keep a tight eye on your credit, especially for signs of fraudulent activity, to avoid any unpleasant shocks that can slow down the process of applying for a loan.   
If you are unclear of your credit score, you can monitor it at one of the many financial websites that offer this service, or you can get a full report on your credit once a year.   
5. Refrain from making big purchases.   
Before purchasing a home, you should avoid incurring significant debt by buying a car or planning an extravagant vacation. Even if you have already been preapproved, you should still do this.   
How much money you make compared to how much debt you have is referred to as your debt-to-income ratio, and it can have a big impact on how much money a lender is willing to give you as a loan. Having a manageable amount of debt can assist make the process of purchasing a home go much more quickly and easily.   
Cleaning up your financial CV can enhance your chances of purchasing a home, similar to how editing your resume before applying for a job can help improve your odds of getting hired.   
Make use of the various tools and resources available online, such as our affordability calculator, which may assist you in determining the price range of the home that is within your financial means. The down payment you will need to make can be estimated using our mortgage calculator, depending on the price of the home and the interest rate. Check out our thorough lender and agent reviews while looking for your future home. These reviews can assist you in finding the most qualified real estate partners to meet your requirements.