The New Year is right around the corner – meaning it’s time to start thinking about your financial plans and resolutions for 2020. If this is the year for making big moves like purchasing your first home, I have a few tips that will help you get on the right track. 

Take your credit score to the gym.

A typical list of resolutions almost always includes getting fit or going to the gym. If your goal is to purchase a home in 2020, that means you may need to improve your credit score. The better your credit score, the better chance you have of landing a nice loan and a better price on your potential mortgage. To keep things on the up and up, start practicing good habits such as recording your spending, keeping up with your loan payments and steering clear of making any large purchases for a while. 

Cut back on spending.

A huge part of purchasing a home is having enough money for the down payment. In the same vein of not making any large purchases, making small adjustments to your daily budget will actually help you save more in the long run. Start putting money back now! 

If you aren’t sure where to start, there are a few easy ways you can save by simply tweaking your daily routine. Make your coffee at home instead of visiting a coffee shop, invite friends over for dinner instead of going out, cancel or pause one of your subscriptions and start making grocery lists so you don’t go overboard buying unnecessary items at the store. 

Kickstart the process. 

The homebuying process can be a long, arduous process without the right help or knowledge of what to do first. If you’re not quite ready to make an offer and sign on a house, you can still go ahead and get some of the leg work out of the way by applying and getting pre-approved for a loan. 

Pre-approval is an essential step in the mortgage application process. A lender will pre-approve you for a loan based on official proof of your current credit score, income, tax returns, job and outstanding debts. This process gives you a stronger understanding of what you can afford and shows sellers that you’re serious about purchasing.

Make a wish list for your home.

What are some of the most important factors you’re looking for in your home? Now is the time to start thinking of what is an absolute must, and what you’re willing to reconsider. How many bedrooms do you need at minimum? Maximum? If you have kids, what schools are in the area? Do your research and figure out the most crucial factors for your new home. That way, you can be sure to relay your thoughts to your Realtor, who can better help you find the perfect home.

Find a Realtor.

Your Realtor is going to be your rock throughout the homebuying process. They will help you manage your stress and try to help you find the home of your dreams. From start to finish, he or she will be in your corner helping every step of the way.

If you’re thinking of purchasing a home in the new year, have any questions about buying or selling, or need any general real estate advice, feel free to contact me at 941-225-1500 or AmyChapman@michaelsaunders.com.