How to increase your odds of becoming a homeowner.
Improve your credit score. The lowest interest rates are typically offered to borrowers with the most impressive credit histories. If mortgage rates climb, you'll need to put in more work to find a lower rate. Check your credit score and see where it falls on the poor-good-great spectrum. Then, see what you can do to improve it before you reach out to lenders.
Generate more cash. Cobbling together a down payment is one of the biggest challenges you’ll face as a first-time buyer, so drive income anywhere you can. In today's tight labor market, there’s a chance you might find a higher-paying job. Or, you might try a low-stakes way to chase returns in the white-hot stock market, by using a popular app that lets you invest "spare change" from your everyday purchases.
Destroy your debt. If you’re trying to save up to purchase a home, carrying multiple high-interest debts — like credit card balances — won't help. Consider rolling those expensive debts into a single, lower-interest debt consolidation loan. You'll pay less in interest and wipe out your debt sooner, to create a little more room in your budget.
And you're probably going to need that, based on how things are looking for homebuyers.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.