4 New Year's Resolutions That Gets You Ready To Buy A Home
Buying a home could be a goal which might take lot of money and time to reach it considering our lifestyle.
Every New Year, we take a decision to reboot our lifestyle in terms of new routine, new habit and new goals for a better us, where getting a house is one such goal which is being desired since beginning stages of our lives.
In which, following these 4 New Year Resolutions will help you buy a home pretty sooner than you expected.
1. Building A Very Good Credit History
An important factor that has to be worked upon is your credit history, since that would be the very first thing that your bank or the lender would look into.
The lenders would prefer lending money to the borrowers who has a good history of paying off credit card and all the debts that you have within the deadline. This shows that you are a reliable borrower who pays on time.
If your credit history is not looking good, then getting the home loan would be very difficult and might take long.
Having a good record of paying all your bills such as phone bills, electricity, house rent and utilities reflects your history of money management.
2. Stay in that Job
The second most important factor the lenders look into are your annual earnings and the employment history. A steady job history will make you a good deal of getting you a loan.
A new job can be good start for you personally, but it might not attract the lenders especially if you are moving to a new industry.
If you run a E-commerce business or earn by working from home, you can still qualify for the loan, if you show them the extra documentations.
But if you are working on a hourly or monthly salary basis, it will boost your application as the lenders would like to know your paycheck that you'll receive.
3. Your Credit Score Matters.
Your credit score will have impact on your ability to buy a home. As we spoke in our first point about the credit history, the outcome of a good credit history is a very good or even an excellent credit score.
If you do not have a good credit score, chances of your application getting affected negatively are high and it might also be a deciding factor for the lender about the amount to lend.
A poor credit score will lead to increase in the interest rate, which will cost you lot of thousands in addition to the loan or even drag it to your whole life.
4. Avoid Large Purchases and limit subscriptions.
Just because you have the money to buy does not mean you can buy it. It is difficult to be rich if you are not financially literate and disciplined.
Being rich is not about how much money you spend to have an object but about how much money you save and have in bank.
Avoid taking large debts or no debts, save money for your goals like buying a car or for a vacation. Do not take debt for those.
Having a minimum debt or no debt at all will make the home buying process go smoothly and it'll also decide how much money can the lender give you looking at your debt amount.
Final point would be that you might be wasting lot of money for a subscription which you have not used for a long time. this subscription will eat your savings in your account slowly and might delay your process of accumulating money for the house.
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