Module 1: Are You Ready to Buy?

Buying a home is one of the most significant financial decisions of your life. Before diving into listings and mortgage applications, you need to honestly assess whether you're ready — financially and emotionally.

The 5 Readiness Dimensions

True readiness isn't just about having a down payment. It spans five interconnected areas:

1. Credit Readiness: Is your credit score in range, and is your credit history clean enough to qualify for the loan you need?
2. Income Stability: Have you been at the same employer for at least 2 years, or can you document consistent self-employment income?
3. Savings Readiness: Do you have enough for the down payment, closing costs, AND reserves after closing?
4. Debt Management: Is your DTI ratio within qualifying limits, and are you comfortable adding a mortgage payment?
5. Lifestyle Readiness: Are you planning to stay in the area for at least 3–5 years? Will homeownership fit your life?

The Rent vs. Buy Decision

Buying beats renting financially when your planned time horizon exceeds the break-even point — typically 3–5 years in most markets. The break-even calculation accounts for: equity buildup, appreciation, tax benefits on one side, and opportunity cost of down payment, transaction costs, and maintenance on the other.

When You're Not Quite Ready

If your assessment reveals gaps, create a 6–18 month action plan:

• Credit below 620: Focus on payment history and utilization reduction.
• Down payment short: Open a HYSA and automate savings; investigate DPA programs.
• DTI too high: Pay down credit cards and car loans aggressively before adding a mortgage.
• Income instability: Build 24 months of consistent employment or self-employment documentation.