New Year’s Resolutions to Help You Become a Homeowner in 2023

Buying a home is an exciting milestone in anyone’s life. Whether it’s your first time or your fifth, the process of becoming a homeowner can be quite intimidating. Though the home-buying process may seem daunting, there are several steps you can take to make it easier. Here are five new year’s resolutions for first-time homebuyers that will help you become a homeowner in 2023.

Work on Your Credit Score

Having a good credit score is one of the most important steps you can take to become a homeowner. Many lenders use credit scores as part of their assessment for approving mortgage applications, so having a good credit score can significantly increase your chances of getting approved for a loan. If your credit score is lower than you would like, work on building it up by making all payments on time, paying down any existing debt and increasing your total available credit limit. 

Pay Down Debt: Paying off debt before applying for a mortgage is another important step in the home-buying process. Lenders often look at debt-to-income ratio when assessing prospective buyers and if this ratio is too high, they may not approve your loan application. So if you have any existing debt (like student loans or credit cards), start paying them off as soon as possible so that they don't affect your eligibility for financing.

Save for Your Downpayment

Saving for your downpayment is essential when buying a home; most lenders require borrowers to put down at least 20% of the purchase price as their downpayment. To make sure you have enough money saved up when it comes time to buy, start saving now! Open up a dedicated savings account and set aside money each month towards your downpayment fund. This will ensure that you have enough money saved up when it comes time to apply for financing and help make sure you get approved!

Avoid Large Purchases

Another important resolution for first-time homebuyers is to avoid large purchases until after closing on their mortgage loan. Making large purchases (like furniture or vacations) with cash or using credit cards can cause lenders to reconsider approving your loan application because these purchases can increase your debt-to-income ratio significantly and make it harder for them to assess whether or not you are able to afford the loan repayment amount each month.

Avoid Changing/Starting A New Job

Finally, avoid starting any new jobs until after closing on your loan application; most lenders want borrowers who have been employed in their current job role for at least two years before applying so that they can assess whether or not they are stable enough financially to pay back the loan amount each month without difficulty.

Becoming a homeowner doesn't have to be overwhelming; with some careful planning and preparation beforehand, you can successfully navigate the homebuying process with ease! By following these five New Year's resolutions - working on improving your credit score, paying down existing debts, saving money towards a downpayment fund, avoiding large purchases and avoiding starting new jobs - first-time homebuyers will be well on their way towards becoming homeowners in 2023! Good luck!  ​​​​​​