With 2016 in the rear-view mirror, it’s time to look ahead to what 2017 can bring. If that includes a new home, you want to start getting ready now if you aren’t already. Here are three tips to help you become a homeowner in 2017!
Build Your Credit History and Repair Any Damage
Pull a copy of your credit report and really look at it. If there are mistakes, ask find out who reported them and request that they are removed. If there are issues with your report, including late payments or missed payments, it’s time to roll up your sleeves and make them right. Make every payment on-time. Cut down on your debt-to-income ratio (keep it under 30% if you can). Pay off bad debt like Credit Cards, but keep some good, lower interest-rate debt to show that you can and will make payments on-time.
Make Saving a Priority With a Budget
You will probably pay more for your mortgage than you are for rent. You’re building equity, which is a huge perk of owning a home, but it will cost you more money. When you own a home, you are also responsible for more than you are as a renter, and will have to pay for a lot more things. Repairs are on you. Appliances are yours, but you have to buy them and repair them. You have to be prepared for things to go wrong. Start living on a budget now, and put the money that you save away for your down payment. Make it automatic and save it in a separate account from your main money to keep you from spending it. This can help you prepare for home ownership.
Ask People How To Fix Things
One of the main challenges of home ownership is repairing things that break. Everything breaks, and as a renter you no longer have the landlord to help. Roll up your sleeves and learn how to repair the things that you own. You can save hundreds of dollars on repairs by learning how to fix your own messes. YouTube and your Dad are invaluable resources for fixing anything. If you’re bound and determined not to learn, you can also invest in a home warranty, but those can carry their own costs. Just learn to fix small stuff.
If you feel that these tips have gotten you ready to buy a home, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 and Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?