4 New Year's Resolutions for Home Buyers

With the new year comes new milestones to reach, and creating resolutions is a great way to motivate you to hit important goals. Whether in your personal or professional life, setting goals for the year will help you stay focused and make sure you prioritize what’s important.

If your goal is to purchase a home in the coming year, there are a few things you can do in the interim before you start the process to help ensure everything goes smoothly, and to set yourself up for success. Here are some practical resolutions for you to consider if you’re planning on buying a home!

1. Work on Your Credit Score

Your credit score plays such an integral role in the home buying process, and if it is not where it should be, make a resolution to improve it. Creating a goal to improve your credit score, and figuring out what steps you need to take, can have a huge impact on your home buying experience.

You can start by pulling your credit report at www.annualcreditreport.com and see what your score is. Once you know, then you can make a plan on how to improve it. Do you need to make a few extra payments on your credit card? Do you need to pause credit card spending for a little bit? Determine what you need to do to improve your credit score, and then get started!  

2. Avoid Large Purchases

One common mistake that we often see with eager buyers is they will make a large purchase, such as buying a car or furniture for the new house, right before they start the home buying process. While purchasing these things is not necessarily bad, your credit score can be affected.

If you can, hold off making any large purchases and refrain from taking on large amounts of debt prior to the closing of a new home loan. This is an excellent tactic to avoid any unexpected hiccups during the process, and you can buy the home of your dreams with confidence.

3. Avoid Starting a New Job

Starting a new job is always a fun, exciting experience. However, if you start a new job in the middle of the home buying process, this can dramatically affect the process. Buyers should aim to start a new job until after closing. So, if you are thinking about switching jobs, consider waiting  until you are in your new home.

4. Avoid Signing Up for Monthly Subscriptions

There are many monthly subscription services, some of them a necessity and some of them just for fun. Because companies make signing up for these monthly subscriptions so easy, it can feel tempting to sign up for them all, without thinking about the impact it will have on your bank account.

If you plan on buying a home in the new year, make a resolution to avoid signing up for any new monthly subscriptions. This way, you keep your priorities in check, and you will have a little extra cash when it comes time to purchase a home.

Additionally, you may want to thoroughly review your current monthly subscriptions. Many times, people will sign up for subscriptions and then forget about them, or sign up for free trials and then forget to cancel. Take some time to review your bank account and credit card statement, and make sure to cancel any subscriptions that you are not using.

Your Home Buying Resolutions Will Make All the Difference

The journey to purchase a home starts with the decisions you make in your everyday life. The new year is the perfect opportunity to put effort into this goal, and it will be well worth it in the end.  

Our Mortgage Loan Officers are ready to help you purchase the home of your dreams. Whether you are just learning about what the initial steps are or are wanting to start the pre-approval application, we want to make the buying process as easy and stress-free as possible. Are you ready to learn more? Contact a Blackhawk Bank Mortgage Planner today!

Tammy Zurfluh
SVP Mortgage Banking