As the summer heats up, so do our spending habits! Whether it’s planning a beach getaway, hosting backyard BBQs, or keeping the kids entertained during their break, summer expenses can really add up. What you might not realize is that these seasonal expenses can affect your loan approval! So, let’s dive in and see how you can stay on track to make buying a home this year a reality with the Potempa Team.
Keep a Close Eye on Your DTI
Debt-to-income ratio (DTI) is one factor that lenders consider during the loan approval process. In the summer, it’s easy to get caught up in the fun and let those expenses pile up. But all that extra spending can sneakily impact your DTI by pushing up your credit card balances. Be mindful of those swipes and ensure you’re maintaining your current DTI. Better yet, enjoy some low-cost or free activities and continue chipping away at any existing debt!
Maintain a Healthy Credit Score
Summer can be a whirlwind of family vacations and kids’ camps, but forgetting to make payments or letting debts pile up can put a damper on your credit rating faster than a surprise rainstorm on a beach day. If you don’t normally automate your credit card payments, do so over the summer when it’s easy to forget a date due to travel or extra activities. Be sure to tackle any new credit card debt promptly. Consistent, on-time payments show lenders you’re a reliable borrower.
Set a Budget for Fun and Stick to It
“Budget” and “fun” don’t usually belong in the same sentence, but setting a summer fun budget is crucial to ensure you don’t need to dip into the money you’ve already saved up for your down payment, closing costs, and that all-important emergency fund. Think of your budget as your summer game plan—it helps you enjoy the season without losing sight of your financial goals. Allocate your spending wisely and track it regularly to avoid any surprises. That way, you can have fun in the sun while keeping your savings intact and your homebuying dreams on track!
Make Time to Get Pre-Approved
While you’re soaking up the best of summer, don’t forget to carve out some time to take the next steps toward getting pre-approved for your loan. Getting pre-approved now means you’ll be ready to make your move when the fall homebuying season arrives. Gather your documents and reach out to us at the Potempa Team to get the ball rolling. As the #1 FHA lender in America for the second year in a row, we love working with first-time home buyers. Let us help make the loan approval process easy and seamless so you can get back to enjoying your summer!
A little proactive preparation goes a long way and summer isn’t over yet! Use these tips to keep yourself on track and you can have lots of fun without letting seasonal expenses affect your loan approval.
