How To Keep Your Finances Mortgage-Ready During a National Crisis

Everyone is in the same boat, but dealing with different storms. I think it’s safe to say that all of us are revisiting finances and making sure things are streamlined and carefully watched. Here are some tips on how to take care of your credit and future, whether you are buying or keeping your home, this is great information.

We are in an unprecedented time with economic uncertainty. We have seen many shifts over the last couple of months that change business as usual. For many, this has changed their personal finances and people are needing to reevaluate their financial and real estate plans. However, throughout this uncharted territory, people do not need to give up on these goals. They just need to approach things differently. Here are some ways to keep your finances together during economic changes.

Make a Plan

Set aside the time to really look your finances. Assess what financial obligations you currently have versus where your income is. See where things can be trimmed back and set up a budget to get you through the next few months to keep you buyer-ready.

Understand What Mortgage Lenders Are Looking For

Keep in mind what mortgage lenders consider on mortgage applications. Mortgage lenders want to see applicants that have some money saved in reserves, a solid credit score and a low debt to income ratio. This means the best way to get yourself financially ready is to keep your debt low and save as much money as you can.

 Maintain your Credit Score

There are several factors that attribute to your credit score. The chart below indicates the biggest factors to your credit rating. The best ways to protect your credit score is to continue making your payments on time and avoid accruing new debt.

 Seek Help During Hardships

If you are one of the millions of people who have faced layoffs or decreased working hours, don’t be afraid to reach out for help. Call your creditors and explain your situation. Many are willing to work with you on different forbearance and deferment options. This will allow you to protect your credit rating during a difficult time.

These times are challenging for many, however, they do not need to postpone your homeownership goals indefinitely. Gather knowledge, look deeply at your situation and make a plan to forge through. In time this will pass and life will return to our new normal. Perhaps, this can leave you even stronger economically in the long term.