The New Year is right around the corner! If you are considering buying a home next year, here are a few resolutions that can help you prepare:
Know your credit.
Make all bill payments by the due date. Apply for credit in moderation and take on new credit only when you absolutely need it. Get a free credit report at www.annualcreditreport.com
Save for a down payment.
Although it is possible to get a mortgage with a small percentage down, you can usually get
a better interest rate if you put more down – shoot for 20%.
Pay yourself first.
On a regular basis,set aside an amount you want to save towards your down payment and put it in a special savings account so that you don't spend it impulsively.
Reduce your debt.
Generally, lenders look for a total debt load of no more than 36% of income. Increase your income. If necessary, take on a second, part-time job to get your income at a high enough level to qualify for the home you want.
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