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It's that time of the year when most people make resolutions for the new year. If one is your resolutions is to buy a new home, there are some steps you should take to make sure you are in the best state financially to make the purchase. We’ve put together some quick tips to help you keep this New Year’s Resolution.
 
Start Saving for a Down Payment (Boost Your Savings)
An obstacle for anyone buying a home is saving for a down payment. Many people think that a 20% down payment is required. However, down payment options of 3% are now common! Visit our website here to view our loan options or give us a call at 732.832.2967 to discuss the option that’s best for YOU!
 
The sooner you start to save, the better.
Here are 10 easy ways to save for a down payment:
 
1)     Save your raises, bonuses and tax returns
2)     Transfer a fixed amount into a special savings account every month or even every paycheck
3)     Skip vacations for a year
4)     Ask for a raise
5)     Lower your expenses
6)     Sell some of your investments
7)     Get a second job
8)     Borrow from a relative
9)     Get a financial gift
10) Take advantage of special programs - ask us about Down Payment Assistance programs to see if you qualify!
 
Check your Credit Rating
This one’s important! Your credit score is one of the main foundation blocks of your mortgage application. Simply put, the stronger your credit score, the better your mortgage could potentially be. No matter what your score looks like, there is usually room for improvement. In order to maintain a good credit score, start getting in the habit of these kinds of good credit practices:
 
· Record your spending
· Keep up with your debt payments
· Don’t go over your credit limit
· Use your credit cards wisely
· Don’t make large purchases (new car, new furniture, etc)
 
Tame Your Debt
If your looking to buy a home in the near future, it’s important to get your debt in check. Debt has an impact on your credit score. Part of your credit score is about credit utilization, so if you rely too heavily on credit and only make small payments toward your balances every month, you’re considered at higher risk of overextending yourself. Paying these downs will raise your score. A big part of the mortgage approval process is also based on your debt-to-income (DTI) ratio, which measure how much your monthly income goes towards paying off debts. Bottom line, the less debt you have, the more home you will be able to afford.
 
Find Your Dream Home
Once you’ve got everything in order, it’s time to look for your dream home. First, determine the wants in needs in a new home that you’re looking for. Take into account:
 
·Number of bedrooms
· Number of bathrooms
·Square footage
· Location
·Neighborhood
·Schools
·Local traffic / Public transportation
 
Get Pre-Approved for a Loan
Remember, it’s VERY important to get pre-approved before you start looking for your dream home. A lender will pre-approve you for a loan based on official proof of items including (but not limited to):
 
·Your credit score
·Your income/finances
·Tax returns
· Job
·Current debts
 
A pre-approval gives you a stronger understanding of what you can afford for a home. It also shows the seller that you are a genuine buyer.
 
If you think you’re prepared and would like to get started, click below to get pre-approved. If you have questions and want to speak to one of our expert loan officers, give us a call today 732.832.2967.