As 2025 has rolled in, many people set resolutions to achieve their biggest life goals—and buying a home often tops the list. If you’re planning to purchase a home in the coming year, getting your financial ducks in a row now can make the process smoother and more rewarding. Here are some key tips to help you get ready.

1. Give Your Credit Score a Check-Up

Your credit score is a big deal when it comes to getting a mortgage and securing a good interest rate. Start by checking your credit report for any mistakes that could be dragging your score down. If your score could use a boost, focus on paying down existing debt, making all payments on time, and avoiding new credit inquiries.

2. Beef Up Your Savings

Saving for a down payment and closing costs can be one of the biggest hurdles for homebuyers. Aim to save at least 5-20% of the home’s price for the down payment and an extra 2-5% for closing costs. Setting up a dedicated savings account can help you reach your goal faster.

3. Get Pre-Approved

Getting pre-approved for a mortgage gives you a clear picture of how much home you can afford and shows sellers that you mean business. A mortgage professional can guide you through the pre-approval process and help you understand your loan options.

4. Crunch the Numbers

Take a good look at your income, monthly expenses, and overall debt-to-income ratio (DTI). Lenders usually prefer a DTI below 43%, so if your debts are on the high side, consider paying down credit cards, car loans, or other obligations before applying for a mortgage.

5. Plan for the Extras

Owning a home comes with costs beyond the mortgage payment, like property taxes, insurance, maintenance, and utilities. Factor these expenses into your budget now to avoid any surprises later.

Start the Year with Confidence

By taking these steps, you’ll set yourself up for success in the home-buying process. A little financial prep work now can make all the difference in achieving your dream of homeownership in the New Year. Ready to get started? Reach out to a mortgage professional today!