What No One Taught You About Getting Ready to Buy a Home

Buying a home is one of the biggest financial moves most people will ever make, but here’s the truth: very few people actually know what it takes to get ready for that step. Schools don’t teach it, most parents don’t explain it, and a lot of people only find out after being turned down for a loan or scrambling at the last minute.

My job as a buyer’s agent is to put you in the strongest position possible, before you start shopping, during negotiations, and all the way through the contract. So let’s walk through what you really need to know before you ever set foot in a house or sign a contract.

Financing Basics

Unless you’re one of the rare buyers paying cash, you’re probably going to finance your home purchase. That means a bank or lender is going to look very closely at your financial life before they decide whether or not they’ll lend you money.

Think about it this way: would you loan a buddy money if they didn’t have a job, already owed other people a bunch of money, and weren’t great at keeping track of their spending? Probably not. Banks work the same way. They don’t care if you’re a “nice person” they care if you can reasonably pay them back over the next 15, 20, or 30 years.

That’s why lenders have minimum requirements. These usually include:

• Credit score: You don’t need a perfect 850, but most loans require a certain baseline score to qualify. FHA loans can go lower, conventional loans typically require higher. Depending on the lender, credit score can impact your loan terms, but other lender have flat interest rates as long as you qualify.

• Down payment: No, you don’t need hundreds of thousands in the bank, but you do need something. FHA loans can start at 3.5% down, while conventional often requires 3% or more. A bigger down payment also lowers your monthly payment.

• Job history & income: Lenders want to see consistent employment, usually at least two years in the same line of work. They also want to verify that your income is stable and can support the payment.

• Debt-to-income ratio: This compares your monthly debt payments (car, student loans, credit cards, etc.) to your income. The lower, the better.

Meeting these minimums tells a lender you’re not a risky buyer. It shows you’ve managed your money well enough that they’ll feel comfortable lending you hundreds of thousands of dollars.

Naturally Ready vs. Financially Focused

Here’s something people don’t talk about: some buyers naturally manage their money in a way that makes them “suddenly” ready to buy. They’ve paid their bills on time, avoided too much debt, kept a stable job, and saved a little without even thinking much about it.

For others, buying a home takes focus and intentional work. If you’ve had credit struggles, switched jobs often, or haven’t built up savings, that doesn’t mean you’ll never qualify, it just means you’ll need to take extra steps to get yourself ready.

The good news is, you don’t need to be perfect. The bank isn’t looking for flawless credit or a 30-year history at the same job. They just want to see that you’re consistent, responsible, and stable. If you struggle knowing where to start, talk to someone like me, a real estate agent, or a lender.

Two Budgets You Need to Know

Once you’re financially in the ballpark, the next step is getting pre-approved by a lender. This is critical. Here’s why:

Almost no one knows exactly how much the bank will approve them for until they go through the pre-approval process. And there are really two budgets you need to understand:

1. What the bank will give you.

2. What you actually want to spend.

If your personal budget is lower than the bank’s number, always go with your budget.

Lenders make money on interest, so their goal is to loan you as much as possible. But just because they’re willing to give you $400,000 doesn’t mean you should take it. You need to think about how much you can comfortably afford in a monthly payment while still living your life.

If you’ve been disciplined with your money, the bank will probably offer you more than you should realistically spend. If you’ve been less disciplined, the bank might not offer you as much as you wish you could have.

Either way, knowing these numbers before you look at homes will save you a ton of stress, and get you a better chance at getting an offer in before anyone else.

Don’t Look Until You’re Pre-Approved

This is the step a lot of buyers try to skip, and it’s a mistake.

There’s no point in looking at homes with a realtor if you don’t know what price range you can buy in. Even worse, if you find a house you love and aren’t pre-approved, you could lose it while scrambling to get a lender’s letter together.

 From a seller’s perspective, an offer without a pre-approval letter isn’t really an offer at all. Why would they take their home off the market for someone who might qualify for a loan? Sellers know how quick and simple it is to talk with a lender and get pre-approved. If a buyer isn’t willing to take a few minutes to do that, it signals they’re not serious or committed about buying a home.  

The good news? Pre-approval is easy. Many lenders can do it within a few hours once you provide basic paperwork. I've got a ton of lenders who I can recommend to you to get started!

Pre-Approval vs. Final Approval

Here’s another thing no one tells you: pre-approval does not guarantee you’ll get the loan.

You don’t make the official loan application until you’re under contract. And even then, the final approval doesn’t usually happen until a week or so before closing. That means from pre-approval until closing, you have to keep your finances steady and clean, or else the underwriters will flag you and tell the lender this person is too risky to lend to!

That means:

• Don’t change jobs.

• Don’t open new credit cards.

• Don’t buy a new car or furniture or any major purchases.

• Don’t suddenly deposit large, unexplained amounts of cash.

• Don’t pay off or move around debt without talking to your lender first.

Any of those things can derail your loan, even after you’ve already gone under contract.

Don’t Forget Closing Costs

Here’s a common mistake: buyers think if they’re putting 10% down, that’s all they need. For example, if you want to buy a $250,000 house, you might think $25,000 is all it takes.

Wrong.

On top of your down payment, you’ll need money for inspections, closing costs (which can include title work, and surveys), and lender fees (which can include loan origination, appraisals, and more!)

In Northeast Texas, we often see around $600-800 in basic inspection fees, $1,000–$3,000 in closing costs, and loan origination fees can run up to 4% of the sales price. Some lenders are closer to 1% (which is why choosing the right lender matters). These costs vary TREMENDOUSLY from area to area and lender to lender.

Sellers don’t usually jump at the chance to cover these for you, especially in today’s 2025 buyers market. Just like how you'd be telling your real estate agent when you go to sell your house that it's crazy buyers are asking you to pay THEIR closing costs!

You’ll need to plan for all these fees as part of your upfront cost.

Getting and Staying Ready

Some people will be naturally ready to buy when the time comes. Others need to work on their finances with intention. Either way, the steps are the same:

1. Build and maintain decent credit.

2. Save for your down payment and closing costs.

3. Keep your job history and income consistent.

4. Know your budget (both personal and lender-approved).

5. Get pre-approved before you look at homes.

6. Keep your finances steady until after closing.

If you do those things, the rest of the process becomes much smoother.

Final Thoughts

Getting ready to buy a home isn’t complicated, but it does take planning. And the earlier you start preparing, the easier it will be when you find the home you love.

You don’t need perfect credit, a huge bank account, or decades at the same job. But you do need to show a lender that you’re stable and responsible enough for them to feel confident about lending to you.

If you’re starting to think about buying a home, even if it’s a year or two away, it’s not too early to start preparing.

I’m not a lender, but as a Realtor, I work closely with lenders every single day, and I’ve helped buyers through this process many times. If you want help figuring out your next step, reach out to me directly. Even if you’re not in Northeast Texas, I’d love to help guide you in the right direction.

—
Leah Rolen, Realtor with Keller Williams – 469-744-5309