The New Year is a time for us to implement the New Year’s resolutions that we have been planning. Whether it’s quitting a bad habit or learning a new skill, the New Year is a time for us to wipe the slate clean and start anew. For many, preparing to buy a new home is their ultimate goal for 2017. To start the year on the right foot, we have put together a few tips or resolutions to help renters who are transitioning into homeownership get into their dream house.
Resolution 1: Raise Your Credit
Securing financing all starts with a good credit score. Your credit score is the key that unlocks the door to your dream home. A solid score affects your ability to lock down a reasonable interest rate for your mortgage and other financing. It is one of the most important factors that banks consider when it comes to approving your financing and mortgage options. A good credit score that most banks accept is in the 700 range. If you know that your credit score is not within this range, then take this year to understand your credit history and raise your score.
Tip: Paying bills on time and eliminating credit card balances are great for helping you raise your score.
Resolution 2: Visualize Your Perfect Space
The biggest mistake many renters and prospective homeowners make is rushing to find a new place to live because they don’t like where they currently reside. They let the desire to move overtake the need for practicality. In order to find a perfect home or rental, you have to imagine what life would be like in that location. You can’t treat your requirements for a home the same way you treat the requirements for a rental space. The amount of time you spend and the nature of your life in both varies.
Tip: Visualize how you plan to utilize every aspect of the space and how feasible it is in the long run.
Resolution 3: Continue to Save
Finding the perfect Folly Beach rental, Sullivan Island home, or any other dream location you can imagine is not complete without making sure you have the proper financing in place. Credit fixing and space visualizing aside, you need to have access to cash, and savings your savings is your first step. What you save has great bearing on what your initial down payment on the home or rental space will be. Even if your initial down payment is calculated at $0, there is a possibility that you still need to show cash reserves and responsibility spending habits.
Tip: Resolve to save a little more each month to help build up your savings.
The New Year is an exciting time to get started on new tasks and achieve great things. As renters and prospective home buyers, consider these helpful resolutions to take make 2017 your best year yet.