What do wellness and homeownership journeys have in common? A lot more that you might think! Read on for some financial fitness tips that will help put you at the top of your game and increase your readiness to make an offer on a home when the right opportunity presents itself.
Preparation is a vital aspect of physical activity. From adequate hydration and nutrition to a proper warm-up routine, there are various ways to set yourself up for success to achieve your goals. It also helps to prepare yourself (financially) for the home buying process.
What does that look like? Consider putting away funds that will go towards your down payment and closing costs. Setting aside tax refunds or work bonuses and raises will help build up savings. You can also set up automatic transfers into your savings accounts to make saving even easier.
Consistency, consistency, consistency. That might be a phrase you’re familiar with from an athletic coach or personal trainer. Maintaining a fitness routine is beneficial for seeing results. This concept translates to purchasing a home, too.
When you apply for financing, an underwriter will review your loan package to identify your credibility as a borrower. There are consistent patterns they like to identify including: on-time payments for credit accounts, employment without gaps in the past two years, and deposits into your bank accounts. These are just a few items to keep in mind and there may be flexibility with them.
Keep track of numbers.
Whether your workouts involve strength training exercises with multiple repetitions, cardiovascular exercises that cover a specific amount of mileage, or another activity, tracking statistics can help you monitor progress. And with the home loan process, there are lots of numbers to be aware of to see where you shape up.
It’s particularly helpful to stay on top of your credit profile. Reviewing your credit report and score prior to starting the home buying process is a good idea, to see if there’s anything you can (or need to) work on. For instance, is there an error on your report that needs to be resolved or a debt that could be paid down?
Also, you might want to take advantage of different calculators that exist to assist you with your financial goals. A rent versus own calculator can compare the estimated costs of buying a home to renting. Or, a payment/amortization calculator could calculate your potential monthly payment. A variety of other tools are available as well.
As you can see, financial fitness is an important aspect of buying a home. To fully understand your personal situation and how it may impact your financing options, it’s important to work with a trusted lender and experienced loan officer. Contact us to get started.