Still a ways away from purchasing real estate, but want to be responsible in the mean time? No matter your timeline, these tips will help every aspiring homeowner get ready to buy a house.
1. Pay Bills on Time
This is the easiest way to boost your credit score. If you’re looking at taking a major loan in the future, all bills should be paid on time now.
2. Research Loan Options
Learn some Realtor lingo before your bank account relies on it. Here are some basic loan options. Here are some financing options that you may qualify for. You can also learn all the basic vocabulary with our BASICS series here on the blog.
3. Avoid Big Buys
If you’re within a couple years of applying for a mortgage, don’t make another big investment. Car payments or any other major expense will hurt your debt to income ratio, and make it look like you already have enough bills on your plate.
4. Have 3 Trade Lines
Lenders like to see that you can balance multiple payments. Again, you don’t want to add these trade lines within a year or two of applying for your loan, but a good example would be balancing a credit card, your student debt, and a car loan…
5. Save for Your Down Payment
Every month that you’re not paying a mortgage, you should act like you are. Set money aside with each paycheck to make that down payment greater. The more you save now, the easier it will be to not only acquire a loan, but to pay it off.
6. Understand Your Credit Timeline
You know not to make any major purchases a year out from your homepurchase. Six months before, stop checking your credit score. You should know by then if it looks good and too many checks will look suspicious to lenders. Two months before your big purchase, stop using credit altogether. Swap the credit card for a debit card so that nothing can set you back so close to the finish line.
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6 Tips to Get Ready to Buy a House (…someday) [Infographic]
by HouseHunt
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