If you are buying a Central Ohio home during 2016, you’ll want to pay extra attention to your budget this holiday season! The financial moves you make in December could impact your mortgage application in the upcoming year. Protect your home buying plans by following these tips!
Say “no” to new credit cards. Many chain stores offer a transaction discount or incentive for you to open a charge account, right at the register. You can have a new account in seconds! Unfortunately, it can take months to pay off the balance, and you could be tempted to spend more. Further, newly opened accounts can and will negatively impact your credit score.
Another tactic by retail stores is the “deferred interest” option on major purchases. Zero-percent interest for 12 or 18 months sounds like a terrific deal, but if you do not pay the balance in full by the deadline, all the accrued, but “deferred” interest, will hit your balance in a lump sum. This can abruptly raise your outstanding debt, and depress your credit score as a result.
One more point: even in the case of deferred payments, the lender has to calculate the debt and the payment against your qualifying ratios, front-end and back-end. This will impact your loan approval amount, which will affects your home purchase power.
Protect your savings. The discounts look good this time of year, and that’s by design; retailers count heavily on holiday spending. They also count on impulse purchases, and purposely arrange end-cap displays and seasonal merchandise to tempt your wallet.
Before you begin, or continue, your holiday shopping, set a gift-giving budget that gives you some boundaries. An easy way to do this, is to look at the maximum dollar amount you can afford for holiday spending, then divide it by the number of people on your gift list.
Then, consider your strategies. Gift cards are easy to purchase, but they have the disadvantage of showing exactly how much you’ve spent on each person. It may take a bit more time to pick out merchandise or food gifts, but you’ll probably spend less. If you have the time and talent, homemade gifts can be among the most frugal, yet meaningful items.
Protecting savings is important for future home buyers, because you’ll need these funds for your down payment. Lenders also like to see consistent saving habits and some funds in reserve. Keep your long-term goals in mind!
Does your wish list include a new Columbus home? We can help your dreams come true! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
