New Year’s Resolutions to Buy a Franklin Home in 2020
Welcome to 2020! Every New Year, you might make a resolution to eat healthier, exercise more or start a budget. Have you ever considered of making some New Year’s resolutions to become a homeowner? Here are a few wise New Year’s resolutions to make this year to in order to buy your Franklin home in 2020!
Rethink incurring new debt.
Whether it’s that dream vacation or a new car, there are always going to be spending temptations that will arise this year. Resisting the urge to create new debt is crucial if you’re going to be buying a home in Franklin this year. Lenders want to see that you have a healthy debt-to-income ratio, which is essentially how your debt compares to how much money your paycheck shows. So instead of jetting away on that trip to Europe, consider how this will affect your debt-to-income ratio and how lenders will perceive you when you’re ready to apply for a loan.
Get on a budget, ASAP.
If you’re not on a budget, now’s the time to make this one of your New Year’s resolutions, especially if your goal is to be a first-time homeowner. You don’t want to be surprised with all of the new expenses that arise from owning a home including maintenance to insurance and more. There are many helpful budgeting apps, such as Mint and EveryDollar, that can help you get started if you’re new to budgeting. This will alleviate a lot of stress later down the road when you accrue new expenses as a homeowner.
Keep your job.
While starting a new job might look like an appealing option right now, it won’t exactly appear that way to lenders. Lenders want to see that you have a steady job with a predictable income so that they can rest assured that you’ll be able to make your payments. However, not all new job opportunities are frowned upon. If you’re going from hourly to salaried, for example, this job change is seen as a benefit to your application. Either way, always notify your lender right away if you do change jobs.
Stay on top of your credit.
It’s crucial that you stay on top of your credit card payments as you embark on the process to buying your Franklin home. Lenders want to see that you have been responsible with your debts and know how to manage your finances. If you don’t have a history of credit card payments because you do not have credit cards, including a history of paying your utility bills, rent, student loans and other similar payments in your loan application will suffice.