3 New Year's Resolutions to Help You Buy a Home
As we ring in a new year, many of us have new goals and resolutions. If one of your goals for 2023 is to buy a home, it is important to start preparing. These three resolutions will help you reach your goal and get into a new home this year.
New years resolutions are a great way to stay motivated throughout the year and prioritize what’s important. Here is a list of three practical resolutions to set yourself up for success when buying a home.
If you are a busy family with young kids, it might be a no-brainer for you. However, if you prefer a quiet, slow-paced neighbourhood, you may want to reconsider. Here are five things to consider before you buy a home close to a school.
1. Start Saving for A Down Payment
This can be a challenging part for most homebuyers. Down payments are typically a minimum of 5% of the home’s purchase price. If you aren’t sure what price range you will be shopping in, contact me for a pre-approval to find out what you will likely qualify for. It’s important to plan how you will come up with the funds for a down payment. If you will be saving some money each month, the sooner you start the better. You should also determine how much you need to be putting away each month to reach your goal. Otherwise, down payments can come from RRSPs, the first-time Home Buyers’ Plan, gifts, or other sources.
2. Avoid Any Large Purchases
Many factors come into play when applying for a mortgage loan. Purchasing things like a new car or furniture can impact your ability to qualify for a loan. Even if you make a large purchase after getting a pre-approval, it can still affect your eligibility up to the final closing. Try to hold off on making these significant purchases or taking on any new monthly payments until after the closing of your new home.
3. Work on Your Credit Score
Another important factor when applying for a mortgage loan is your credit score. This is a number between 300-900 that rates your past credit and creditworthiness. Lenders consider this number with other factors to determine your mortgage eligibility. If you have a low credit score, you can make an effort to improve it. This could mean making extra payments, pausing credit card spending, or always making your payments on time.
If you stick to these new years’ resolutions, it will make your home-buying process much easier. Another way to proactively get ready to buy a home is to contact me to go through all of the requirements, ensuring the process goes as smoothly as possible and you are fully prepared.
– Duane Springsteel