Planning to Buy a Home in 2026? Here's What You Should Be Doing Now
If purchasing a home is on your goal list for 2026, it’s crucial to start planning now to ensure you are fully prepared for everything the homebuying process requires.
Before you start searching for houses, here are five key steps you should take first.
Start Researching Your Ideal Location
Being at the start of your home search, now is the perfect time to begin researching where you want to buy and what you are looking for in a home. Consider important factors like
Your commute to work or places you frequently visit.
The neighborhood’s resale value and surrounding amenities (parks, shops, etc.).
The quality of local school districts.
Get Your Credit in Check
Your credit plays a vital role in your home financing. Lenders evaluate your credit score to determine your creditworthiness and the interest rate you qualify for.
If you believe your credit score is less than ideal, we recommend speaking with your lender to determine your next steps. For example, at Southern Trust Mortgage, we have a team of credit specialists available to equip you with the tools and resources to build your credit into an ideal position to purchase your next home.
Pay Off Existing Debt and Lower Your DTI
While a variety of factors determine your mortgage eligibility, your debt-to-income (DTI) ratio is a major one. Lenders compare your total monthly debt payments to your gross monthly income to assess your ability to manage a new mortgage.
The preferred DTI varies by loan type and your specific situation; however, it is always best practice to keep it as low as possible. If your DTI is higher, consider taking steps to reduce and pay off your existing debts before applying for a mortgage.
Build Up Your Down Payment and Savings
You would be surprised how many people seriously interested in buying a home fail to consider the funds required for a down payment and closing costs. While buyers do not always need 20% down, most loan programs have minimum requirements. Plus, having more cash available when making an offer can make your bid more desirable, especially in a competitive market.
Get Pre-Approved (Your First Step with a Lender)
Meeting with a mortgage lender before you start your home search provides a realistic look at what you can truly afford and what your potential monthly mortgage payments would look like. Plus, meeting with a lender early allows you to build a relationship with a trusted home financing partner who will help advocate for you during the entire home buying process.
Whether this is your first time purchasing or you are an experienced buyer, getting pre-approved is key to a stress-free home purchase.
While these are just a few things that you can do to prepare for your home purchase, it is important to determine the best path for you and your personal financial situation. Get started and talk about the next steps with an experienced local lender today!