Our Blog

If your New Year’s resolution is to buy a new home in 2018, there are steps you can take now to be sure you are fully ready when you contact a quality home builder in Allen, TX. Getting your financial “house” in order is not easy, but as with any worthwhile goal, some self-discipline now can pay off in a big way later in the year. Take these steps now to make 2018 the year you purchase your dream home!

1. Pay down existing debt. Lenders will want to see that your debt payments–including the prospective mortgage payments–are less than about 30% of your monthly income. Cut back on unnecessary spending, sell extra items and perhaps take on a side gig to beef up your finances while you prepare to make your new home dreams come true.
2. Save for a down payment. Ideally you should be able to put 20% down on your home purchase in order to avoid PMI, or private mortgage insurance. You might also receive a better interest rate if you make at least a 20% down payment. Consider putting any financial windfalls, such as large monetary gifts or tax refunds, toward your down payment.
3. Get your credit in shape. Check your credit reports now. This will give you time to clear up any issues before you apply for a mortgage. Boost your score by paying all bills on time and reducing your overall debt in relation to your income and available credit. A higher credit score generally results in lower interest rates because you’ve shown yourself to be reliable in making payments.
4. Don’t take on new debt. Hold off on purchasing a new car, opening a new credit account or maxing out your credit cards. Keep your debt-to-income ratio low.
5. Find out how much house you can afford. Talk to several mortgage lenders to find out how much house you can afford. Then, get preapproved for your loan. To do this, you’ll need tax returns for the past few years, pay stubs, w-2’s, lists of debts and assets and other paperwork, so give yourself plenty of time to get everything organized.
6. Stay at your current job. Lenders want to see that you have been at the same job for at least two years. If you change jobs now it will most likely hinder your ability to get a loan.

While you’re preparing to buy a home, the key is to stay focused on your goal and improve your financial situation. When these steps are complete, you should be ready to build your new home. Landon Homes is a premier home builder in Allen, TX that can make your dreams of the perfect home come true.

This post was written by Landon Homes.