Thinking About Buying In The Next 12 Months?
A Straight-Forward Financial Guide to Achieve this Goal.
A lot of people scroll through real estate listings like it’s a hobby.
You see a house you love, save it, and then go right back to thinking, “There’s no way I could ever actually afford something like that.”*
Here’s what I want you to hear from a real estate agent who does this every day:
You don’t have to be rich, perfect, or “ready” to start getting your finances in shape to own a home.
You just have to start.
This isn’t just for luxury buyers or people shopping for a second home. It’s for:
- Renters who feel stuck
- Families outgrowing their place
- Folks rebuilding after a rough season
- People quietly wondering, “Could I ever do this on my own?”
Wherever you’re starting from, if buying in the next year is on your heart or in the back of your mind, here’s how to get financially ready—without shame, fluff, or sales pressure.
Step 1: Get Honest About Where You’re At
Before you fall in love with a house, you’ve got to get familiar with your numbers. There is simply where we start this whole process.
What I recommend you DO:
- Figure out what it really costs you to live each month.
Not the “perfect budget” version—the real one. Rent, utilities, car notes, gas, groceries, kids’ stuff, subscriptions, eating out, all of it. - Take a look at your credit.
Check for:- Late payments
- Collections
- Errors that don’t belong to you
Lenders care about patterns—are you paying on time now and moving in the right direction?
- List out your debts.
Car loans, student loans, credit cards, personal loans.
This helps you and a lender see how much room you realistically have for a mortgage payment.
What you DON’T want to do
- Don’t guess your price range off an online calculator alone.
Those tools don’t know about daycare, travel ball, medical bills, or how often you hit DoorDash. - Don’t hide your situation from yourself.
It’s easy to avoid looking because it feels uncomfortable. But once you see the truth, you can actually make a plan.
Step 2: Build 3 Buckets That Make Homeownership Less Stressful
No matter how much you make, these three buckets matter if you want to buy in the next year.
Bucket 1: Down Payment & Closing Costs
You don’t always need 20% down, but you will need some cash.
DO:
- Aim for:
- 3–5% down (or whatever options a lender shares with you)
- Plus 2–4% of the purchase price for closing costs, depending on your market and loan type
- Set up a separate savings account just for your home purchase and treat it like a non-negotiable bill you pay each month.
DON’T:
- Don’t assume “no savings” means “never.”
It just means you’re earlier in the process—and that’s okay. - Don’t fully depend on gift money, bonuses, or tax refunds until you’ve talked to a lender about how those need to be documented.
Bucket 2: Emergency Fund
Owning a home is incredible—but water heaters, AC units, and surprise repairs are very real.
DO:
- Try to build 1–3 months of basic expenses in an emergency fund.
- Start small if you have to: $25, $50, $100 a paycheck. Consistency beats perfection.
DON’T:
- Don’t drain every dollar you’ve saved just to “make the purchase happen.”
An empty cushion is what turns a good decision into a stressful one.
Bucket 3: Move-In & Real Life Costs
Even move-in ready homes come with extra costs beyond the closing table.
DO:
- Plan for:
- Moving expenses
- Utility deposits
- Any must-have appliances or furniture
- Minor fixes and “we didn’t notice that until we moved in” items
- Remember ongoing costs like:
- Lawn care or equipment
- Pest control
- HOA dues
- Higher utilities if you’re moving into a bigger space
DON’T:
* Don’t assume that once you close, the spending stops.
The first 90 days in a new home are usually the most expensive.
Step 3: Use the Next 12 Months on Purpose (Not in Panic Mode)
You don’t have to overhaul your entire life in a week. Think of the next year in phases.
9–12 Months Out: Get Oriented
DO:
- Have a no-pressure conversation with a lender.
Not to get locked into anything, just to ask:- Where am I now?
- What would I *likely* qualify for if nothing changed?
- What could I work on over the next 6–12 months?
- Pay everything on time, every time.
A clean on-time streak does a lot for you. - Start knocking down high-interest credit card debt if you can.
DON’T:
- Don’t open new store cards or “buy now, pay later” accounts just to spread out payments.
- Don’t co-sign loans for anyone.
Even if they’re making the payments, that debt counts against *you* on paper.
6–9 Months Out: Build Instead of Backtracking
DO:
- Keep your debt balances trending down, not up.
- Increase what you’re putting into your home savings account if your budget allows.
- Ask your lender:
- “If I can improve one thing in the next few months, what would make the biggest impact?”
DON’T:
- Don’t make major job changes without talking to a lender.
Career moves can be good, but timing matters when you’re planning to buy. - Don’t start living like you “already own” more than you can afford.
The goal is a stable, comfortable payment—not just getting a yes on paper.
3–6 Months Out: Get Serious and Get Pre-Approved
DO:
- Get pre-approved, not just pre-qualified. That means:
- Full credit pull
- Income and assets reviewed
- A clearer sense of your actual price range
- Gather your paperwork:
- Recent pay stubs
- Tax returns or W-2s
- Bank statements
- Sit down with your agent to talk through:
- A monthly payment that feels right in real life
- Areas and property types that match both your budget and your lifestyle
DON’T:
- Don’t make large unexplained deposits or money moves between accounts without keeping clear records.
- Don’t let your heart outrun your budget.
Falling in love with homes way above your range makes the right one harder to see.
0–3 Months Out: Protect the Finish Line
Once you’re under contract, your job is to protect your approval.
DO:
- Keep paying your bills the same way you have been.
- Respond quickly to your lender’s requests—those extra documents matter.
- Stay in close communication with your agent and lender about anything major (job changes, income shifts, new debts).
DON’T:
- Don’t finance furniture, appliances, or a new vehicle before closing.
- I’ve seen good deals get rocky over a new car payment or “no interest” store financing.
- Don’t ignore emails or calls from your lender because the process feels overwhelming.
We’re here to get you through it, not grade you.
What If You’re Not in a “Perfect” Financial Spot?
Here’s the truth: almost no one is.
If you’re living paycheck-to-paycheck:
Your win this year might be:
- Cleaning up your credit report
- Getting current on bills
- Building a small emergency cushion
- Starting a habit of saving something, even if it’s small
You might be 12 months away. You might be 24. Either way, the work you do now is moving you closer, not keeping you stuck.
If you’re “doing okay” but have some debt:
Your focus this year might be:
- Knocking down credit card balances
- Tightening up discretionary spending
- Building a solid down payment / closing cost fund
- Getting crystal clear on what payment range feels healthy, not just “approved”
If you’re in a strong position:
Your focus might be:
- Fine-tuning your strategy:
- Is this a starter home, a long-term home, or a second home?
- Is this purely for you, or is there rental/investment potential?
- Making sure your next move lines up with your bigger life goals, not just what looks impressive online.
The Big “Don’ts” If You Think You Might Want to Buy
Here’s a quick list I would hand to anyone thinking, “Maybe next year…”:
- Don’t wait until you’re “ready” to start asking questions.
You get ready by asking questions and making a plan. - Don’t assume homeownership is only for people in a certain income bracket.
Every year, I see people who thought they were too far behind take real steps forward. - Don’t compare your path to someone else’s.
Different jobs, different debts, different seasons of life—your timeline is allowed to be your own. - Don’t let embarrassment keep you from reaching out.
You are not the “worst case” I’ve seen. Promise.
Your Financial Habits Are Your First “Offer”
Before you ever write an offer on a home, you’re making an offer to a lender:
“Here’s how I handle my money. Can you trust me with a mortgage?”
That offer isn’t built in one giant leap. It’s built in a hundred small decisions over 6–12 months:
- Paying on time
- Saying no to a few things now so you can say yes later
- Saving what you can, even if it feels slow
- Being honest about where you are and where you want to go
If homeownership is something you want—even if you’re scared to say it out loud—you are not alone, and you’re not too late.
When you’re ready to talk through what this could look like for you, I’m here to walk you through it—no pressure, no judgment, just straight answers.
Hunter Brown
251-362-0504
[email protected]
[email protected]
