Dear Future Homeowner,
I’m excited to share this 6 month Homebuying Preparation Guide to help you feel confident, organized, and financially prepared to purchase a home this year. Buying a home is a journey, and with the right plan, it becomes much more manageable and empowering.
Review my HomeBuyers workshop:
https://www.tianamyrealtor.com/home-buyer-workshop
Below is a 6-month breakdown outlining what to focus on each month, how to save strategically, and what lenders look for when qualifying you for a mortgage. (Plus a bonus 7th month)
Focus: Financial awareness & credit health
Review your credit report and dispute any errors
Avoid opening new credit lines or making large purchases
Create a realistic monthly budget (Follow the 50-30-20 rule. 50% or your take home income goes to needs: housing, meals, transportation. 30% goes to wards wants: shopping, nails, spa, travel, etc. 20% go to savings: 1st to build your 3-6 months emergency fund. Then to paying down high interest debt (like credit cards), and then to your home buying fund.
Start tracking spending and identify areas to cut back
Goal: Know where you stand financially
Focus: Down payment, closing costs & emergency fund
Open a dedicated savings account for homebuying
Begin saving for:
Down payment (which is typically 0%, 3.5%, or 5+% of the purchase price)
Closing costs (2% - 4% of the purchase price) - These are the cost you have to pay to purchase the property and transfer it to your name
Emergency fund (3–6 months of expenses)
Automate savings if possible into a different account outside of your primary spending account
Goal: Build consistency with saving
Focus: Education & lender conversations
Speak with 1–2 lenders to discuss loan programs. Here are some that I have worked with in the past:
https://www.tianamyrealtor.com/home-buyer-workshop/preferred-lenders
Learn which loan type best fits your situation: FHA, Conventional, Veterans Loan, USDA rural land loan, etc.
https://www.tianamyrealtor.com/loan-options
Ask about down payment and closing cost assistance
Begin gathering required financial documents (Last 60 days of paystubs, last 60 days of bank statements including checking, savings, stock brokerage accounts, and retirement accounts, last 2 years of W-2s, Last 2 years of tax returns…)
** Don’t let them pull your credit until you are within 60-90 days of wanting to buy a house
Goal: Understand your buying power
Focus: Financial readiness
Submit documents to your lender. This is also the time when your lender runs your credit.
Obtain a mortgage pre-approval
Refine your price range and monthly payment comfort level
Documents Lenders Typically Require:
Last 60 days of pay stubs
Last 60 days of bank statements
Last 2 years of tax returns
W-2s or 1099s (if applicable)
Photo ID
Goal: Be fully pre-approved and market-ready
Focus: Clarity & priorities
Decide your must-haves vs. nice-to-haves
Consider:
Location & commute
School districts
Property taxes & HOA fees
Long-term resale value
Begin monitoring neighborhoods and home prices. Send me a list of what you want in a house and I will set you up with daily emails to send you homes that match your criteria. Include things like the area, # of bedrooms and bathrooms, preference for a garage, preference for a basement, fixed upper or already renovated, etc.
Goal: Know exactly what you’re looking for
Focus: Research & readiness
Visit neighborhoods at different times of day to make sure its areas you like in the day time and at night time
Research crime stats, future development, and amenities
Attend open houses (even casually)
Stay disciplined with savings and credit
Goal: Feel confident about where you want to live
Focus: Action
Begin touring homes seriously with your realtor
Make competitive offers with confidence
Stay responsive during negotiations and inspections. Be ready to pay out of pocket for your Earnest Money deposit which is about 1% of the purchase price, your home inspection which ranges from $400-$600+, and your appraisal which also ranges from $400-$600+. These are your upfront costs when purchasing a home.
Goal: Secure the right home, not just any home
Maryland Programs: Link to more info -
https://www.tianamyrealtor.com/all-things-md-real-estate/maryland-downpayment-assistance-programs
Maryland Mortgage Program (MMP)
Maryland SmartBuy
1st Time Advantage
Local county grants (varies by location)
Washington, DC Programs: Link to more info -
https://www.tianamyrealtor.com/all-things-dc-real-estate/dc-downpayment-assistance-programs
DC Open Doors
HPAP (Home Purchase Assistance Program)
EAHP (Employer-Assisted Housing Program)
Eligibility varies by income, location, and loan type.
Buying a home takes preparation, patience, and discipline. It is absolutely achievable with the right plan and guidance. My role is to make sure you’re educated, protected, and confident every step of the way.
Please don’t hesitate to reach out with questions or when you’re ready to take the next step. I’m here to help you turn preparation into ownership.
Dear Future Homeowner,
This month, let’s do some quick math to help you identify a realistic savings goal for purchasing your future home.
Before saving for a home, make sure you have an emergency fund set aside. This should equal 3–6 months of your living expenses, including rent, utilities, transportation, and groceries.
👉 Keep this fund in a separate savings account, not your everyday checking account.
A general rule of thumb is to save at least 20% of your paycheck. If you’re able to save more, even better—allocate the extra funds directly to your home-buying savings account.
Additionally, plan to save an extra $1,000 to cover non-refundable upfront costs, such as:
Home inspection
Appraisal
FHA Loans
Minimum down payment: 3.5%
Minimum credit score: 580+
Higher credit scores = better interest rates
(Remember, your interest rate directly impacts your monthly mortgage payment.)
Conventional Loans
Minimum down payment: 3%
Typical minimum credit score: 620+
Higher credit scores qualify for stronger rates and terms
In DC and Maryland, closing costs typically range between 2%–4% of the purchase price.
📌 When you combine down payment + closing costs, most buyers should aim to save 5%–7.5% of the purchase price, in addition to their emergency fund.
$350,000 home
5%–7.5% = $17,500–$26,250
$500,000 home
5%–7.5% = $25,000–$37,500
A simple way to estimate your goal is to take the price of homes you’re viewing online and multiply it by 5%–7.5%.
There are down payment and closing cost assistance programs available in both Maryland and DC that can significantly reduce your out-of-pocket costs.
I’ve helped clients purchase homes with less than $3,000 out of pocket by using these programs.
📍 Maryland Programs:
https://www.tianamyrealtor.com/all-things-md-real-estate/maryland-downpayment-assistance-programs
📍 DC Programs:
https://www.tianamyrealtor.com/all-things-dc-real-estate/dc-downpayment-assistance-programs
If you have questions or want help creating a personalized savings plan, feel free to reply to this email. I’m here to help you move closer to homeownership.
Dear Future Homeowner,
Let’s talk about how debt impacts how much home you can afford, also known as your Debt-to-Income Ratio (DTI).
Did you know that the amount of debt you carry directly impacts how much a lender will qualify you for?
Your monthly debt payments (car loans, credit cards, student loans, etc.) count against your buying power.
For example:
You may feel comfortable affording a $2,700/month mortgage, but if you also have a $700/month car payment, a lender may say:
“Instead of qualifying you for a $2,700 mortgage, I can only qualify you for a $2,000 mortgage.”
That difference can mean qualifying for a $450,000 home versus a $390,000 home.
And while a $390,000 home may still work for you, it’s important to make sure there are homes you actually like available within that budget.
Your DTI compares your total monthly debt payments to your gross monthly income.
A DTI below 36% is considered healthy and favorable.
Some lenders will allow DTIs up to 43% or higher, depending on the loan program and your overall financial profile.
Example:
Monthly gross income: $5,000
36% DTI = $1,800 total allowable monthly debt
If you had no other debt, your mortgage could be up to $1,800/month.
But let’s add existing debts:
Car payment: $300/month
Credit cards: $50/month
Student loans: $200/month
Total monthly debt: $550
Now your maximum mortgage payment becomes:
$1,800 – $550 = $1,250/month
That significantly impacts the price range of homes you can afford.
👉 This is why I always recommend avoiding new debt (new car, new credit cards, large purchases) until after you buy your home.
While 36% is ideal, some lenders allow higher DTIs.
Using the same $5,000 monthly income:
43% DTI = $2,150
Subtract the same $550 in monthly debt:
$2,150 – $550 = $1,600/month mortgage
That extra flexibility can make a big difference in your buying power.
The good news is: people buy homes with debt every single day.
Your lender may:
Ask you to pay off certain debts
Be okay with student loans but want credit cards paid down
Qualify you now—but explain what needs to change if you want a larger home
The key is talking to a lender early so you know where you stand.
🔗 Preferred lenders you can speak with:
https://www.tianamyrealtor.com/home-buyer-workshop/preferred-lenders
Calculate your DTI here:
https://www.calculator.net/debt-ratio-calculator.html
After calculating, ask yourself:
What is my DTI?
Is it below 36%?
Is it below 43%?
Am I comfortable with this number?
Next, redo the calculation and replace your current rent with your ideal monthly mortgage payment (you can find estimates on listing websites).
Then ask:
What is my new DTI?
Is this still affordable?
Do I want to pay off debt or increase my income to improve my DTI?
For more home-buying education and resources, visit:
https://www.tianamyrealtor.com/home-buyer-workshop
If you have questions or want help creating a strategy that fits your goals, I’m always here to help.