4 New Year's Resolutions for Home Buyers

With a new year comes new milestones to reach, and creating new year’s resolutions are 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.

For many people, 2021 may be the year that you finally purchase the home of your dreams. This is an excellent goal, and something that you should carefully consider before you take the first step. If your goal is to purchase a home in 2021, there are a few things you can do in the interim before you start the home buying process to help ensure the process goes smooth and to set yourself up for success. If you are planning on entering the housing market this year, here are some practical resolutions for you to consider before you take the leap!

1. Work on Your Credit Score

Your credit score plays such an integral role in the home buying process, and if your credit score 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.

A step to get started would be to pull your credit score and see where it’s at. You can pull your credit report at www.annualcreditreport.com, to get an idea of where your score is. Once you know, then you can make a game plan on how to improve it. Do you need to make a few extra payments? Do you need to pause credit card spending for a little bit? By focusing on your credit score, you will be able to feel at ease going into the home buying experience.

2. Avoid Large Purchases

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

If you can, hold off making any large purchases and avoid taking on large amounts of debt until after the closing of a new home. That way, there will not be 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, starting a new job in the middle of the home buying process can dramatically affect the process. While you may not be able to predict when you will be offered a new job, you should try to avoid starting a new job until after closing. So, if you are thinking about switching jobs, consider waiting on that 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 effects this will have on your bank account. Even though a subscription might be a few dollars a month, that can quickly add up. However, if you plan on buying a home in 2021, 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 even want to thoroughly review your current monthly subscriptions. Many times, folks 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.

Preparing to Buy a Home in 2021

Here at Blackhawk Bank, we want you to be able to hit some great milestones in 2021, including buying the home of your dreams! Are you ready to learn more about the home buying process? Contact us today!

Tammy Zurfluh
SVP Mortgage Banking