Buying a home can take months and months of planning.  To achieve your goal there are some bad habits you need to kick to the curb so you can be prepared for the big day. Take a look at seven bad habits you should have stopped yesterday if you’re looking to hit the housing market.

1. Credit Cards

It is no secret. Credit cards tend to poor decisions that can significantly affect your ability to buy a home. A rule of thumb to follow is not to use more than 30% of your available credit. Consistently exceeding this amount can make qualifying for a mortgage tough.

2. Job Hopping

Thinking of switching jobs soon or going into freelance work? You might want to think twice about leaving your 9-to-5 if you’re serious about buying a home. Someone who has a steady employment translates to stability. To a lender, someone who is stable puts their mind at ease.

3. Having a Low Bank Balance

Having a financial cushion is the best option if you are looking to buy a home. We have all been on the side of ‘stuff that happened, ’ and it’s usually never cheap. Be mindful of the unexpected expenses and have a cushion to avoid running up credit cards in these events.

4. Not Having A Budget

Half of Americans have reported that they do not have a budget at all. This is not a good habit if you want to buy a home. Start your budget today and keep the 50/20/30 rule in mind. That is, 50% of your income should go to essentials (rent, groceries, utilities), 20% should go to financial necessities ( emergency, debt, retirement), and 30% or less should go to lifestyle (shopping, gym, travel).

5. Avoid Big Expenses

Buying a new car or other significant expenses might be great and easily affordable but resist the feeling. The new spending can hold up a mortgage application. Wait it out until you have your house keys in your hand.

6. Keep Paper trail of income

Your lender is going to want to see your recent bank statements. If you fluctuate too much money around it does not look good in the eyes of a lender so be prepared to have a paper trail that can account for new income or transfer of income.

7. Don’t Closeout Credit Lines

You might be thinking it’s a smart move to close out a credit card and transfer your balance to a zero interest account. This is a significant step in the direction to taking control of your finances, but hold off because a closed account can tank your credit score. A sudden drop in credit can derail your lenders from approving a loan.

This is your year to get into the home of your dreams. Get away from these bad habits and start counting down the days till you’re in your home. For the best home buying experience let The Lockwood Team help you get into the home you have always wanted.