First Home Financial Readiness Checker
Evaluate your debt-to-income ratio, credit score, savings, and down payment against 2024 mortgage standards to determine if you are ready to buy.
Answer these six questions to get an instant assessment of your mortgage readiness.
Enter your pre-tax income before deductions.
Include car loans, student loans, credit card minimums, etc.
Use your most recent score from a major credit bureau.
Cash in checking/savings accounts, excluding investments.
Rent, utilities, food, transport, and other non-debt costs.
Select yes if you have saved at least 3% of a typical home price.
You meet some standards but have significant weaknesses in credit or savings that need addressing before applying.
What to fix (3)
Debt-to-Income ratio is below 43%
CriticalLenders use the 43% DTI threshold to ensure you can afford the mortgage without financial distress; exceeding this often leads to automatic denial.
Fix: Pay down high-interest debts or increase your income to lower your total monthly debt obligations relative to your gross income.
You have funds for at least a 3% down payment
MajorFHA loans require a minimum 3% down payment; without this, you cannot access the most accessible first-time buyer loan products.
Fix: Set a specific savings goal for 3% of your target home price and consider selling non-essential assets to accelerate this fund.
Monthly expenses are under 50% of gross income
MinorKeeping living expenses below 50% of income ensures you have a buffer for the additional costs of homeownership like taxes and insurance.
Fix: Audit your subscriptions and lifestyle costs to reduce your monthly burn rate, creating more room for your future mortgage payment.
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