We are all familiar with the typical New Year’s resolutions – eat healthy, exercise, save more money, etc… but when it comes to home ownership, having goals in place are just as important.

Home Buyers

If you are thinking of purchasing a home in the upcoming year, check out this list of home buyer resolutions to ensure you are on the right path to home ownership.

• Fix your credit – Your credit is used as a reference to decision a home loan application. Your credit score may also impact your interest rate and loan payments. Clean up derogatory credit, collections and work to pay down any revolving balances if you are able.
• Catch up on any outstanding bills or late payments – Late payments can be reflected on your credit. Be diligent in making timely payments. Set up auto or ACH payments if this will help ensure payments are made on or before they are due.
• Do not apply for new credit – Thinking of purchasing? It is suggested to not take on any additional debt as this can impact approval of a mortgage or the amount you may qualify for.
• Save, save, save – No matter how great your credit score, you will likely need to have funds available for a down payment or closing costs on a home purchase. It is also important to have reserves for expenses that come along with home ownership as well; maintenance on your new home, finance a furnace that may go out, purchase a lawn mower, etc…
• Get preapproved – Stop in and chat with one of our Mortgage Loan Officers to get preapproved for a home loan. Preapproval will allow you to act quickly if a home comes up that you are interested in purchasing. A preapproval also allows you to understand your budget and at what price you may feel comfortable purchasing.

Home Owners

No plans to purchase in the New Year? Take a look at the list of resolutions below that will benefit you as a home owner.

• Make larger mortgage payments – Consider applying additional contributions towards your mortgage. Big or small, applying additional funds can make a big impact.  Try cutting back on other amenities – daily coffee, going out to eat, etc. and apply these funds toward your mortgage.
• Consider a refinance – A refinance may help lower a payment or shorten your mortgage loan term. Need cash out for a home remodel or home updates? Consider a refinance or second mortgage using the equity in your home to finance these projects.
• Review your home owner’s insurance – Many home owner’s plans roll over from year to year to make it easier for home owners, but this does not always prompt a review of your policy. Review your policy from year to year to determine if there are cost savings options and if the coverage satisfies any recent improvements to your home.
• Clean out the clutter – Clean out the clutter to increase your productivity and relaxation. No need to do it all at once; start with one room at a time. Why wait until spring, start off the year organizing your home and refresh.
• Maintain your home – It’s important to do routine maintenance checks on your home to ensure its longevity. If you catch an issue early on, it will likely lead to cost savings down the road. Check the foundation, inspect your A/C unit and furnace, and check your windows for temperature efficiencies. Test your carbon monoxide and smoke detectors around the home.