If you are looking to buy a home, you need to make sure that you are not only mentally ready, but financially ready as well.
Sometimes we wait until the last minute to break a bad habit—until something really inspires us to do so. For example, you may not decide to start eating better until after you have a health scare. Or, you may not slow down until after you get a speeding ticket.
When it comes to purchasing a home, you simply cannot wait until after the fact to break your bad financial habits. To secure your dream home, you need to establish smart financial practices long before the day that you offer a down payment.
Here are five bad financial habits to break before you buy a home:
- Relying too much on your credit cards. This one is obvious, but one that still leads to many people falling into a financial hole. Try using your credit card only for purchases that you will pay for in full at the next billing cycle.
- Making late credit card payments. Missing payments or paying your payments late can affect your credit score, which means a more expensive loan when it comes to obtaining a mortgage. It could also cause your mortgage application to be denied altogether.
- Opening multiple credit cards. Even if you do not use them, multiple credit cards can hurt your credit score. It can hint that you have a proclivity toward excessive spending.
- Keeping your bank balance close to zero. If you can, you should always have a financial cushion in your checking or savings account. This can save you in the event of unforeseen, costly circumstances, which are not uncommon when you own a home.
- Frequent job changes. Some jobs require a probation period in which you are not able to obtain a mortgage. Also, a steady job looks better to lenders, as it is more indicative of financial stability than job hopping.
In general, if you are looking to purchase a home this year, getting your financial affairs in order ahead of time will ultimately benefit you when it comes time to attain a mortgage! Be proactive when it comes to your financial state.
For your home buying and selling needs in the Auburn-Opelika area, contact Realtor Ryan Roberts today at 334-750-9872! Or, you can email [email protected]!
