Encouragement for Homebuyers: Your Path to Mortgage Readiness

Buying a home might seem out of reach right now, but that doesn’t mean it will always be. Many people struggle to qualify for a mortgage due to credit challenges, debt-to-income ratios, or lack of savings, but with a solid plan, discipline, and time, you can become mortgage-ready! Renting might feel like the only option, but remember: every month you pay rent, you’re building equity for your landlord, not for yourself. The average rent is $2,000 per month, which means over two years, you’ve paid $48,000—and at the end of it, you still don’t own a home. If you commit to a mortgage-readiness plan, you can break that cycle and start building equity for yourself instead. Whether you’re close to qualifying or need a longer runway, here’s a plan to help you reach your goal.

1 Year Plan: For Those Who Are Close to Qualifying

If you’re not too far off, these steps will help you become mortgage-ready within a year:

Step 1: Check Your Credit & Improve It (Months 1-3)

Get a free credit report from AnnualCreditReport.com (I can analyze your
credit report if you want me to)
Dispute any inaccurate information
Pay down credit card balances to below 30% of the limit
Make sure all payments are on time every month

Step 2: Lower Your Debt-to-Income Ratio (Months 4-6)

Pay off small debts (credit cards, personal loans, or car loans if possible)
Avoid taking on new debt-especially big ticket items like a vehicle if you can help it.
Increase income if possible (side gigs, promotions, job changes), even though secondary income needs two year seasoning to be counted as qualifying income, the money you make can help you to pay down debt and/or be used for down payment and/or closing costs.

Step 3: Save for Down Payment & Closing Costs (Months 7-12)

Aim to save at least 3-5% of the home price
Cut unnecessary expenses and put that money into a high-yield savings account
Explore down payment assistance programs or USDA 0% down payment eligible areas (income guidelines and strict DTI ratios will apply with USDA)

Final Steps: Get Pre-Approved & Start Shopping!

Work with me to get pre-approved
Start researching homes within your budget
Continue building good financial habits

2-Year Plan: For Those Who Need More Time

If your credit is low, your debt is high, or you don’t have savings, a two-year plan will give you time to make meaningful changes.

Year 1: Fix Your Credit & Build a Stable Financial Foundation

Months 1-6:

Check your credit score and dispute errors
Pay down debts, focusing on the highest interest rates first
Open a secured credit card if needed to build positive credit
Make all payments on time

Months 7-12:

Continue improving credit (goal: 640+ score)
Save for down payment and/or closing costs
Start budgeting to ensure you can afford future home expenses

Year 2: Boost Income, Continue to Save for a Down Payment & Strengthen Credit

Months 13-18:

Increase your income (ask for a raise or start a side business), even though secondary income needs two year seasoning to be counted as qualifying income, the money you make can help you to pay down debt and/or be used for down payment and/or closing costs.
Continue paying off debts aggressively
Maintain low credit card balances and no late payments!!!

Months 19-24:

Continue to Save aggressively for a down payment & closing costs and/or paying down debt.
Talk to me to see where you stand
If credit and savings look good, start the pre-approval process
Get you in touch with a good real estate agent and start shopping!

Why Waiting Too Long Could Possibly Cost You

If you delay homeownership, you’ll continue paying rent with nothing to show for it.

Let’s put this in perspective:

Renting at $2,000 per month for two years = $48,000 spent on rent
After two years, if you still aren’t mortgage-ready, you’ll keep repeating the cycle
The longer you wait, home prices and interest rates may rise, making it even harder to buy

Instead of waiting, take control of your finances and follow a clear roadmap to homeownership. The sooner you start, the sooner you’ll own your future instead of paying for someone else’s.

I understand that some may need even more time because of possible income restraints. I would encourage you to continue to save and maintain and manage low creditor debt. Keep in mind that big ticket items like automobiles have a huge affect on DTI ratios and having too high DTI ratios will hinder you from qualifying.

I am here whenever you are ready to start your journey? Let’s build a plan together!