The housing market is supercharged right now due to a shortage of homes for sale and crazy competition (bidding wars galore) between home buyers. Home prices are skyrocketing as a result.
If you want a shot at a home in this lifetime, there are four things you should start doing to get closer to your goal.
Raise your credit score
The higher your score is, the better deal you can snag on a loan. An excellent credit score could save you tens of thousands of dollars over the span of a mortgage.
Credit cards have higher interest rates than other debt, so make sure you’re paying the balances down each month. Your credit utilization ratio, which is the percentage of open credit you’re using, drops when you pay down those debts. Credit utilization accounts for 30 percent of your score, so this is a very important factor.
If you’re doing a good job keeping up with your payments, request a limit increase with your card issuer. A limit increase bumps your score up since the amount of open credit you have increased. Your credit utilization will drop, and your score will increase.
Stop paying your credit card company
Credit card debt is the most expensive kind of debt there is.
High-interest rates make credit card debt tough to get out of. The side effects of the pandemic and its shutdowns mean more people started charging essential purchases just to get by. In 2021, we’re paying for that (literally).
Take advantage of a debt automation app like Unbury.Me or Tally to automate your repayment and lower your credit card interest rate. If you’re eligible for a credit line through one of these debt automation apps, your high-interest debt will be consolidated. You can start making one minimum payment each month, which is way less overwhelming to most people.
Save money for the down payment
Automate your direct deposit so a portion of your paycheck goes straight into your savings without you having to pull the trigger.
Set up some time to sit down and subtract all your bills from your income and allocate the rest of your money to various spending categories. Live within your means by sticking to a budget. Unsure how to start? Check out our tips, here.
Fintech isn’t going anywhere. New wealth management tools, budgeting platforms and investment vehicles are popping up like daisies. And micro-investing? It makes owning stock possible for everyone.
If you aren’t already investing, now’s the time to start. If you already have kicked that journey off, now’s the time to raise the stakes a bit.