It’s the start of a new year and you may have aspirations of buying a new home in Wokingham but are you ready to make some changes to improve your home-buying situation? The crucial area that you need to get into tiptop shape is your finances.
Stability
Stability is attractive to lenders, so if you’re considering a new job or a change in a career it could be wise to postpone it until you have moved home. A steady employment record with no gaps over the last two years is preferable, as this helps your lender to forecast future income. Ideally, you want to be in a secure position for at least 3-6 months before applying. If an opportunity too good to miss presents itself whilst you are looking for a new home let your lender know.
Do you really need it?
We all have subscriptions to one thing or another. Do an audit and make some decisions about which subscriptions you need. You could use the extra funds to lower any debt, putting your finances in a stronger position.
Make your credit report your friend
Some of us are obsessed with checking our credit report, others haven’t given it a second look. When it comes to buying a home, one of the first things a lender will do is check your credit history. Before you start to look for a home, make your credit report your friend and see what changes you can make to increase your score. Many credit score websites offer advice on how to improve your credit rating, so don’t delay – start to make some positive changes as soon as possible.
Are you registered?
With the recent election still ringing in our ears we can’t imagine any of you aren’t listed on the electoral roll. If not you can increase your credit score by making this change.
Do your sums
Being on top of your finances from the start will not only place you in a good position for applying for your mortgage but also set you up for the future. You know your lifestyle and what you enjoy doing on a weekly or monthly basis, as well as your financial commitments. Before you apply for your mortgage set out a budget to work out the maximum monthly sum you can comfortably pay.
Do your homework
There are a variety of products available from a wide range of lenders, and you want to ensure you get the best deal for you and your current circumstances. Mortgage brokers can often find deals that are not available direct with some lenders.
Get into shape
Just as many of us have made a new year’s resolution to get healthy and in shape, why not add your financial health to your list of goals?
If you’re looking to move in 2020, getting yourself into good buying shape will help put you in a strong position for when you find your dream home in Wokingham.
