We have two months to prepare!
Just because the year is coming to an end, does not mean it’s time to slow down. Let’s go headstrong into 2019 by getting our financial footing right. Now is the time to consolidate debt, get preapproved, build your savings and pay bills on time!
1. Refinance to consolidate debt
Refinance your mortgage, and tap into your new-found home equity by getting cash out to pay off credit card debt, student loans and medical bills! Consolidating debt is beneficial in many ways. Saving money is what we all strive to do, so why not pay off your debts and combine the payments with your mortgage to now only have one interest rate?
Paying down your debt is important before and after you buy a home. Your mortgage payment is a big financial responsibility. Having as little additional debt as possible will ensure that these new payments are not an overwhelming burden.
2. Get preapproved for a mortgage
Shopping for a new home is exciting, but before you start searching, make sure to get preapproved for a mortgage to beat the line.
To do this, you will need to shop around to see which lender can get you the best deal. Always remember to get a second opinion! Closing costs and lender fees can make a huge difference when comparing companies. At Loan Pronto, we have zero lender fees and we also give you a lender credit that will go towards your closing costs.
Once you have found the right lender for you, if you are eligible, they will provide you with a preapproval letter. You won’t have to waste your time searching for homes that are outside this limit. You’ll also be a more attractive buyer. Sellers prefer working with buyers who already have qualified for mortgages. Deals with such buyers are less likely to fall apart because of mortgage issues.
3. Build up your savings
Buying a home is one of the most important purchases you can make. Before you start, you’ll have to come up with a down payment, of course. There are other factors that go into moving that need to be considered as well: closing costs, movers and possible repairs.
Build up your savings before the new year so you can start searching for a home. This will also help you when it’s time to apply for a mortgage. You never want to get caught in a financial crisis, especially when it comes to pa
4. Start a new history of paying all your bills on time
The best way to build a strong credit score is to pay all your bills on time every month. If you pay certain bills late — credit cards, mortgage, auto loan, student loan, and other forms of installment loans — your credit score could drop by 100 points or more. A bill is considered officially late and reported to the credit bureaus if you haven’t paid it by 30 days or more past its due date.
Rebuilding your credit this way takes time. Depending on how weak your score is, it could take months or more than a year of on-time payments to increase it to a level that will qualify you for lower interest rates. The work, though, will pay off in the form of lower monthly mortgage payments.