Check Your Credit Early
Review and maintain your score with a free service like Credit Score by SavvyMoney at least 6–12 months before you plan to buy. If you spot any errors, don’t worry—just dispute them promptly.
If your score is above 740, you’ll be in a great position for the best rates, but remember, improvement is possible at any stage.
Lower Your Debt-to-Income (DTI) Ratio
If possible, avoid taking on new debts, like credit cards or car loans, before you buy—these can affect your eligibility for a mortgage. Every little step you take now brings you closer to your new home!
Save Beyond the Down Payment
While programs like FHA (3.5% down) or VA/USDA (0% down) can help, setting aside a little extra gives you peace of mind and a reassuring cushion for your homebuying journey:
- Down Payment: 3% to 20% of the price
- Closing Costs: Typically 2% to 6% of the loan amount.
- Cash Buffer: 3–6 months of living expenses for unexpected
Account for "Hidden" Costs
Remember to include property taxes, homeowners’ insurance, and ongoing maintenance (usually about 1%–4% of your home’s value each year) along with HOA fees, if applicable. Planning ahead for these expenses brings peace of mind and prevents surprises.