Homebuyers

It’s Financial Wellness Month: How Buyers Can Get Ready to Buy a Home

January is Financial Wellness Month, making it an ideal time for buyers who want to purchase a home in the upcoming year to get ready. The beginning of the year can be a great time to step back, take stock, and get financially organized before the spring housing market heats up.

The main focus of Financial Wellness Month, or FWM, is all about preparation. Buyers who use January to plan tend to move forward confidently, wallet-wise, rather than react under pressure when competition increases.

To help buyers get started, we rounded up real estate professionals and financial experts to get their best tips to take into the new year. Here’s how buyers can use Financial Wellness Month to get themselves in shape to purchase a home in 2026.

Talk to your accountant before buying a home

If buying a home this year is on your horizon, January is a smart time to bring it up with your accountant or tax preparer.

“Share your plans for major purchases in 2026 and ask if they have resources that can help with your home/property purchase,” said Andy Stemp, a CPA and a real estate investor in Anchorage, Alaska. “Frequently, buyers will be asked for proof of income and other documents to support their underwriting requirements.” 

Starting that conversation early can save time later. With advance notice, a tax preparer may be able to pull prior returns, income summaries, and other records lenders typically request. This can save you from scrambling for paperwork once a home is under contract.

Get honest about debt and credit when you’re planning to buy a home

The beginning of the year is also a good moment to pause and review credit scores, debt, and cash flow.

“January is the time to get honest about credit and cash,” said real estate lawyer Stephen Hachey of Tampa Bay, Fla. “Paying down revolving balances, avoiding new debt, and building a realistic down payment fund can make a meaningful difference in 2026.”

In practice, even a small improvement in a credit score can lead to better loan options and lower mortgage interest rates. This can make early action worthwhile.

Audit your monthly spending before making an offer on a home

A quick look at recurring expenses can uncover money buyers didn’t realize they could redirect.

“Go through all of your bills, particularly automatic payments, and ask yourself one simple question: ‘Do I really need this?’” said Realtor Daniel Anderson of Keller Williams Real Estate in Portland, Ore. “Oftentimes, there are line items you are paying for that you no longer use or value.”

The money saved from those streaming services, apps, or gym membership you rarely use can then be applied toward paying down revolving debt or put into a down payment fund.

“This can add up in a hurry,” said Anderson.

Have a mortgage professional pull your credit

Many homebuyers delay having their credit pulled because they worry it will create a temporary dip in their score. The problem is that waiting can limit options when it matters most. That’s why it’s important to speak with a mortgage loan officer early on.

“They could lose out on the home,” said Deb Tomaro, owner and managing broker of Deb Tomaro Real Estate in Bloomington, Ind. “Buyers should not be relying on the credit score they see through their credit card companies. That is not the same score as a mortgage company uses.”

Pulling credit early gives buyers a clear picture of what lenders will see in the end.

A mortgage professional can also explain what steps might help improve a score, whether that’s in the short term or over a longer period.

Do a five- to seven-year reality check before closing on a home

For first-time buyers, FWM is a good opportunity to look past credit scores and budgets and consider how long a home truly needs to work for you.

Five to seven years is a typical homeownership window, which makes it a useful planning horizon. Instead of focusing only on the idea of a home that will last a lifetime, buyers may be better served by asking whether a home will meet their needs for the next phase of life.

“While many buyers focus on stretching their budget to get their forever home (and may subsequently be house rich but cash poor), there is something to be said for enjoying a starter house for a few years,” said Natasha Kittle, a real estate salesperson at Compass in Port Washington, N.Y.

Looking slightly below your maximum housing budget can create some financial breathing room. This allows buyers to build equity while continuing to save aggressively, rather than tying up every dollar.

“Play house” before you make an offer on a home

One way to test whether a purchase truly fits your current finances is to simulate it before you buy.

“Most people will pay more monthly to purchase a home,” said Nick Ahrens of Nick Ahrens Real Estate in Broomfield, Colo. “So, I tell them to play like they bought a house. Then take the difference between the amounts and force it into a savings account.”

The first month often feels tight, which is the point. After a few months, buyers can see whether they’re able to adapt financially and whether the payment still feels manageable. 

Don’t put off home shopping

Buying a home doesn’t need to be a last-minute scramble. In fact, starting the home search early can make the process far less stressful.

“My advice for buyers is one I give all the time, and people are shocked by it: it’s completely okay to start looking at homes months before you’re financially ready to buy,” said Roxanne Hale, associate real estate broker at the Art House Team in Birmingham, Ala. “You’re not committing—you’re learning. Studying.”

Early browsing helps buyers get comfortable with neighborhoods, layouts, price points, and tradeoffs. That familiarity can make it easier to act with confidence when the timing is right.

Add up all of the housing costs

For some buyers, it helps to think beyond the list price and mortgage rate. Factor in property taxes, homeowner association (HOA) dues, insurance costs, and then budget for repairs and maintenance.

“Move beyond basic budgeting and conduct a full-scale financial audit of your housing move,” advised accountant Josh Katz of Universal Tax Professionals. “Calculate the true target down payment by adding 3% to 5% for closing costs, immediate repairs, and moving expenses.”

Looking at the full picture upfront can prevent surprises later and help buyers set a more realistic savings target.

Save a little every month for a financial cushion

Home purchases often come with unexpected costs, especially in the first year. Building a small cushion ahead of time can ease that transition.

“A good strategy is to estimate what buying a new dishwasher, washer/dryer, or other frequently used appliance will cost and divide the total by 26 (one year of pay periods),” said Katz. “If you can set $30 or $35 aside each pay period, you will have enough money on hand that a broken appliance ‘disaster’ turns into an opportunity to upgrade your new home.”

In a nutshell: small, consistent savings can add up quickly.

It may pay off this Financial Wellness Month to get ready to buy a home in the year ahead.