2023 Home Buying NY Resolution #2 - Credit Rating/Credit Clean-up

 

2. Credit Rating/Credit Clean-up

Have you checked your creditworthiness lately?

If you haven’t, do it right now, as most lenders use this score and other factors like the debt-to-income ratio to determine your mortgage worthiness. 

Remember the utility bill you failed to pay a few years back? Such histories of non-payment may come back to haunt you later in the form of a negative credit rating. Eventually, you may fail to qualify for the mortgage. Before your credit rating goes wrong, clean it up to qualify for a great mortgage.

2023 Home Buying NY Resolution #1 - Save Money For Down Payment

 

1. Saving money for the down payment

Arguably one of the most significant and daunting aspects of buying a home is arranging the down payment. 

Considering the higher average prices of homes, you need to arrange at least 20% as a down payment to avoid taking out a high-ratio mortgage.

So, it’s time to think about ways to adjust your budget and free up money. If you are planning to take a loan to buy a home, start saving immediately. But before that, get together with the reputed realtor and get an estimate of the money you need to spend for a new home.