The dream of homeownership is common to communities throughout the world. If you have decided that 2020 is finally going to be the year that you buy a house, check out these smart new years’ resolutions that can help you get there.

Keep Your Job

When you are applying for a mortgage, potential lenders will look at a number of factors including your employment history and income. If you have just taken a new job, you will have a very short job history with that company. This can be a huge red flag for certain underwriters. Having a steady job without employment gaps over the previous two years is the best option.

Cancel Your Monthly Subscriptions

There are a few reasons for this. First, you should keep your costs down as low as possible before buying a home. This will give you more money for a down payment and more money in the bank. Second, monthly subscription services can add up – even if it just seems like a few bucks here and there. If you have them charged to a credit card and your card issuer reports your usage mid-cycle, it could appear to lenders that you have high utilization even though you pay it off every month.

Look at Your Credit Report

Yes, you know you need good credit to buy a home but we find that many potential buyers are so nervous that they just don’t want to look. You should. Know what your lender is going to see. If you do not have a credit history, then you should take steps to build one. If you have a negative credit history then you should take steps to improve it before buying a home. This will save you tens of thousands of dollars in the long run.

Do Not Take on Debt

The last thing you want to do right before applying for a loan is to take on debt. Whether you are considering purchasing a car, going on a vacation that will be put on your credit card, or upgrading something, you should wait until you have secured financing and closed on your home. Remember that even after you’ve been approved, your lender is likely to re-check your credit score in the days leading up to the closing. If they see new debt they may pull funding.

At Berkshire Hathaway HomeServices we can help you find the perfect home. Whether it’s your first home or an investment property, we have you covered. Call us now at (310) 373-0021 and let us get started today.