The new year is here and you may have started mapping out your plans for 2017— whether they are as small as changing your schedule or spending habits or as big as moving to a new home in Chetek WI. However, if you’re planning to buy a home this year, there are a few steps you will need to take to get there and a few obstacles you will want to navigate around to be successful.
As your real estate experts in the Chetek area, you can count on Six Lakes Realty to walk you through the process of buying a home, steering clear of any road blocks that can pop up along the way. Below are five things to avoid if you plan to buy a Chetek WI home in 2017:
Relying on credit cards
Credit card debt can be a major source of problems for those wishing to buy a home. If you already have significant balances on credit cards, you might like to take the time to pay them down before starting your home search or mortgage pre-approval as high balances can have a negative effect on your ability to qualify for a mortgage— or lessen your approval amount.
Making late payments
Now is not the time to fall behind on credit card or loan payments! While you may think missing a payment is no big deal, the exact opposite is true. Missed payments can cause your credit score to drop and as a result, mean a home loan with a higher interest rate for you or worse, a rejected application.
Opening new lines of credit
Just as I stated above, relying too heavily on credit cards or other lines of credit is not something you will want to get in the habit of if you’re planning to buy a Chetek WI home this year. The same goes for opening new lines of credit during your homebuying timeline. Every inquiry you make—whether opening a new card or taking out a line—is a hit on your credit score and you may not want to chance bringing it down even a few points.
Keeping a low bank balance
Lenders and banks will want to see that you are able to carry a mortgage loan and make the payments each month. By keeping a low or close-to-zero balance in your account every month, you may raise a red flag to them and cause them to pause on your application.
It is important to have a steady job history when applying for a mortgage on a new Northwestern Wisconsin home. Again, lenders want to see consistency and a demonstration that you are able to make payments with a steady income. By changing jobs frequently or just before a home purchase, you may raise concerns.
We’re here to help!
Six Lakes Realty
Office: (715) 924-4806