First Steps

3 New Year’s Resolutions To Help You Buy Your First Home In 2019

Published on: December 18, 2018

3 New Year’s Resolutions To Help You Buy Your First Home In 2019

Buying your first home is an excellent goal — and it may be more possible than you think! Here are 3 New Year’s resolutions to help you get closer to this wonderful life milestone this year:

1. Save for Your Down Payment1

Save money and prepare your savings fund for your home purchase. Some lenders require at least a 20% down payment to qualify for an 80% loan-to-value ratio loan. But there are also different types of mortgage programs available for new or low-income buyers that may require a lower down payment.

Follow these practical ways to save more money for your new home:2

  • Automate your savings.
  • Save any extra or unexpected income.
  • Cancel recurring subscriptions & memberships you don’t use.
  • Always ask about discounts.
  • Reduce energy costs & phone bill.
  • Borrow, don’t buy.
  • Pack lunch regularly.

2. Get Your Finances in Order for the Mortgage Process3

Check your credit score, and work to improve it if necessary:

  • Take a look at your credit report before your bank does.
  • Correct any errors as quickly as possible.
  • Pay down credit card balances.
  • Keep your credit utilization rate low.

How Does Your Score Compare? 4 Credit score Rating % of People

  • 300-579 Poor 17.0%
  • 580-669 Fair 20.2%
  • 670-739 Good 21.5%
  • 740-799 Very Good 18.2%
  • 800-850 Exceptional 19.9%

Prepare any financial documents you may need when applying for a mortgage, including:3

  • W2 statements (or 1099 income statements) for the last two years
  • Federal tax returns for the last two years
  • Bank statements for the last few months
  • Proof of investment income

3. Get Pre-Qualified for a Loan & Start Shopping for a Mortgage 3

Look into getting pre-qualified for a loan.

Start the mortgage shopping process immediately to be able to negotiate for a better mortgage rate or get a pre-approved loan.

Which Type of Loan Do Most Buyers Use? 5

Type of Mortgage % of Buyers

  • Fixed-rate mortgage 92%
  • Fixed-then-adjustable mortgage 4%
  • Adjustable rate mortgage 2%
  • Don’t Know 2%
  • Other 1%

Follow these tips and you will be well on your way to be a homeowner in 2019!

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