As the new year begins, goal-setting and resolutions are top of mind. For many, homeownership is a major long-term dream. If that sounds like you, why not make 2025 the year you take concrete steps toward achieving it?
At Habitat Wake, we work closely with homebuyers every day. Here are some essential first steps we'd recommend to any prospective homebuyers:
1. Understand Your Credit
Your credit score plays a key role in determining your eligibility for a mortgage and the interest rates you’ll pay. Start by checking your credit score. You’re entitled to one free credit report each year. Our homeowner services team recommends Annual Credit Report.com. One check per year of this kind will not impact your score.
Many Habitat Wake homeowners have shared that understanding their credit was a game-changer. Knowing your score gives you a clear starting point for improvement if needed. And for others, understanding their credit score opened up new possibilities, such as qualifying for better loan terms or discovering they could afford more than they initially expected with the right loan provider.
2. Build a Personal Budget
If you haven’t already, it’s time to get serious about budgeting. Our mortgage lending experts emphasize the importance of knowing exactly where your money goes each month.
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A clear budget will help you understand what you can afford.
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It provides the foundation for saving toward a down payment and closing costs.
Start by tracking your income and expenses to identify areas where you can cut back and save more intentionally.
“Financial literacy is the number one thing. Once you’re financially stable, you can figure everything else out.” Chris Minor, Habitat Wake Mortgage processor
3. Create a Home Wish List
Think about what you need and want in a home. Ask yourself:
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What county do I need to be in for work or family support?
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How far am I willing to commute?
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Where are my children currently in school?
When working with Habitat Wake to purchase a home, your household's needs for location and home size will be taken into account during the process. Having a sense of these factors ahead of time to share with our team is great.
4. Explore Habitat Wake Homeownership
Do you dream of owning your own home? Habitat homeowners live in safe, affordable, well-built, energy efficient homes. Our homebuyers pay a 30-year affordable mortgage, requiring a reasonable down payment and low monthly payments. At Habitat Wake, we understand how critical homeownership is for building generational wealth, stability, and health.
If you live in Wake or Johnston county and are interested in learning more about how to purchase a home with Habitat Wake, learn more here.