If you want to buy a home in the near future, there are few lousy habits you should ditch right now.

  1. Leaning too hard on credit cards: Don’t max them out; instead, keep them around a 30% utilization rate to minimize the effect on your credit.
  2. Late payments: I hate to say it, but people still do it. Believe it or not, late payments hurt your credit score! You need to borrow a lot of money to buy a home, so what better case to make for yourself than making your payments on time to show you can handle a house payment?
  3. Opening too many lines of credit: This won’t help your case at all and will affect your credit score dramatically.

    “Stay at your job until you close on your home, no matter how bad the situation seems.”
  4. Job hopping: If you’re trying to get a mortgage and using your job as income to qualify, don’t leave that job! Stay there no matter how bad the situation feels at the time. Wait until you get the house of your dreams to get a new job if you leave.
  5. Student loans: They always seem to come up and keep people from getting a home. Start paying off those loans right now.
  6. Keeping a low bank balance: Stuff happens in life. Cars break down, dogs get sick, and all other sorts of things can pop up. Having an emergency fund will mean those emergencies won’t be emergencies anymore because you’ll have the money for them. After you buy your new home, you can use this reserve money to make updates or renovations as well.

If you have any other questions about preparing to buy a home, don’t hesitate to give me a call or send me an email. I’d love to help you!