The holidays are around the corner, which means most of our budgets will go out the window no matter how hard we try. However, if you are planning to purchase a home in 2022, it’s probably a good idea to keep a closer eye on your spending so you’re not overdoing it. To help you stay on budget this holiday season, check out these three tips to keep you on track for homeownership in the new year.

Create a realistic budget plan

Be strategic about your spending and create a realistic budget that you can stick to over the holidays. Aside from your regular monthly expenses, you’ll want to budget and set clear spending limits for any gifts you’re buying, holiday outings and dinners and even the groceries needed to host dinner parties. This will give you a clear picture of where your money is going over the month and identify where you need to allocate any savings toward your new home – whether it’s your down payment, closing costs or home decor. After you’ve made your list of expenses, consider where you can cut down spending. Creating a realistic budget will help you clearly visualize what you’re spending over the holiday, what you can actually afford as well as how much you need to set aside for your home purchase.

Cut down spending on credit cards

It’s no secret that our credit card bills take a big hit during the holidays. With all of the social activities, it’s easy for people to overboard when it’s as simple as a tap, swipe or click. If you’re in the market to buy in the new year, it’s important to keep an eye on credit to ensure you’re not putting yourself in a financial hole this holiday.

Your credit score is a key factor that lenders use to determine whether or not you’re eligible for a mortgage. High credit card debt can impact the strength of your mortgage application and your chances of approval. For this reason, it’s wise to avoid making big purchases on your credit card this holiday if you plan on buying a home early in 2022.

Shop around for deals

We always say it’s a good idea to shop around different lenders to find the best mortgage option available, and we believe that goes for any purchase you make! As you get your holiday shopping done, take the time to really do your research and look for deals to help you reduce spending and stay on budget. Oftentimes, many retailers will price match, offer discount codes or share special offers during the holidays– so why not take advantage! Shopping around can definitely save you money, whether that’s for your mortgage or your gift shopping list.

Use this holiday season as an opportunity to budget better and get ready for the new year ahead so you can buy your home with ease. Your 2022 self will thank you for it!

If you’re ready to begin the home buying process, apply for a mortgage online with us in just five minutes and one of our dedicated Mortgage Advisors will help you get started.