Are you ready to close out 2019? With a new decade starting, it may be time to review your finances and find out what you can do to improve your financial health. Especially if your plans for 2020 include buying a new home. If you’re ready to start a financial overhaul, here are a few new year’s resolutions to help you kick off your finances for 2020.
Set your financial goals
Your financial goals are important to your financial plan for 2020. Are you looking to save for a down payment on a new home? Or are you looking to do some renovations? How about contributing more to your 401K? Once you are aware of your specific financial goals, it can be easier for you to allocate your budget.
Create a budget
Does this sound familiar: Sunday evening, peeking into your online banking app, and your bank account is back at zero? A budget can help you to better allocate your money. A budget will help you understand where your money is going, and how to control your spending. It can even help you increase the amount of money you’re saving. Just remember, use your budget as a guide you into better financial decisions, so it’s okay to reallocate as the year progresses.
Pay off or reduce your credit card debt
The average credit card debt per U.S. household was $8,398 in June 2019. (The Balance). If you want to purchase a new home, it could be beneficial to reduce your debt load. Your loan-to-debt ratio is one factor used during the mortgage process to determine rates and eligibility.
Know your credit score
We’ve shared how important your credit score and what affects it. Good credit scores range from 700 to 749, and scores of 750 and higher are classified as excellent. Turn a new leaf this decade and make sure you’re monitoring your credit score.
If you’re interested in applying for a mortgage, please contact one of our mortgage consultants to get started! Or check out our online mortgage engine application: HUNTMortgageengine.com.