Am I Ready to Buy?
Most first-time buyers wait longer than they need to. Here's what actually determines readiness.
FHA loans accept scores as low as 580 with 3.5% down. Conventional starts at 620. Higher scores get better rates, but you don't need to be perfect. If you're in the 600s, we can still work with you today or build a short plan to get there.
Lenders want to see 2 years of stable income history. W-2 employees are straightforward. Self-employed buyers use 2 years of tax returns. It's not about what you make, it's about consistency.
Your total monthly debts (including the new mortgage) should stay below 43 to 50% of your gross monthly income, depending on the loan type. This is often the most overlooked factor and the easiest to improve with a little planning.
You don't need 20% down. FHA requires 3.5%. Conventional can be as low as 3%. CalHFA can cover your down payment entirely. You'll also want 2 to 3 months of mortgage payments in reserves after closing.
Most of the people I talk to are closer to ready than they thought. The thing holding them back is information, not finances. Start the conversation before you think you're ready. You might surprise yourself.