We are one day away from the start of a new year! 2017 is coming and if you want to make it the year that you buy a home in Summerville, here are five bad habits you want to kick!
1.Using Credit Cards Unwisely
They are convenient, easy to use and have a lot of great rewards! What’s the harm with them? Nothing, if you use them wisely. On average, you shouldn’t use more than 30% of your available credit…If you are consistently maxing out your credit, or even using more than 30% it can hurt your credit score and make it much harder to qualify for a mortgage. This will make buying a home in Summerville that much harder.
2.Too Many Credit Cards
As tempting as 10% off your order and more coupons then you would ever want is, opening that fourth credit card can hurt your credit score. When banks are looking at you as a potential mortgage holder, they see a plethora of credit cards in a negative light. It shows a heavy shopper/spender and it can hurt your score. Even if you never use them, simply opening a card will be recorded and used against you.
3.Missing Credit Card Payments or being Late
We all do it every once in awhile. A holiday gets in the way or we’re busy with work or family, but missing a credit card payment can have a very negative impact on your credit score. Every missed credit card payment impacts your score and that lower credit score turns into a more expensive loan, or worse, a denied mortgage on your home in Summerville.
4.Not Keeping Cash in Your Bank Account
When you are renting a home, your housing costs stay much more stable, rent and utilities. Big expenses are covered by your landlord. However, when you are a home owner, you need to have what is called an “emergency fund” that is more than a few hundred dollars. Unexpected things will come up and when disaster hits, you need to be prepared so that you don’t go underwater and are unable to keep up with your mortgage.
The year before you want to buy a house is not the year to switch jobs or go at it on your own. Mortgage lenders want to see stability and consistency. That translates to a better risk for them.
Please feel free to contact me if you are interested in buying a home in Summerville, new home in Summerville , a historic home in Summerville or selling your Summerville home. Make 2017 the year you become a homeowner!