As the new year begins, it’s the perfect time for first-time homebuyers to set financial resolutions that bring them closer to their dream home. Here are 5 practical resolutions to help you achieve homeownership in 2025:
1. Boost Your Credit Score
Your credit score plays a major role in determining your mortgage eligibility and interest rate. A higher score can save you thousands over the life of your loan.
How to Improve Your Score:
Pay bills on time every month.
Reduce credit card balances to below 30% of your credit limit.
Avoid applying for new credit unless necessary.
2. Create a Down Payment Savings Plan
Saving for a down payment can feel overwhelming, but breaking it into manageable steps makes it achievable.
Tips:
Set a monthly savings goal and automate contributions.
Cut unnecessary expenses and redirect that money to your savings.
Take advantage of programs like the First-Time Home Buyer Incentive or tax-free First Home Savings Account (FHSA) in Canada.
3. Reduce Debt
Lenders consider your debt-to-income (DTI) ratio when approving mortgages. Lowering your debt increases your borrowing power.
Steps to Take:
Focus on paying off high-interest debt first.
Consolidate debts into a lower-interest loan if possible.
Avoid taking on new debts until after you’ve purchased your home.
4. Get Pre-Approved Early
A mortgage pre-approval gives you a clear picture of your budget and strengthens your position as a serious buyer.
What You Need for Pre-Approval:
Proof of income and employment.
Recent tax returns.
A summary of your assets and liabilities.
5. Research the Housing Market
Understanding the market where you want to buy can help you make smarter decisions and avoid overpaying.
How to Stay Informed:
Monitor real estate trends in your desired area.
Use online tools and attend open houses to get a feel for pricing.
Work with a knowledgeable mortgage broker and real estate agent.
Partner with Arise Mortgage for Your Homeownership Journey
At Arise Mortgage, we specialize in helping first-time homebuyers navigate the complexities of the mortgage process. Let us help you turn these financial resolutions into a clear plan for success. Contact us today and make 2025 the year you step into your first home!
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