End-of-Year Checkup: Are You Financially Positioned to Buy a Home Next Year?
/Norah Tanner, part of the Houzd Mortgage Team, is back to talk about an end-of-year check-up on your financial position for buying a house. Let’s take a look.
As the year wraps up, a lot of people quietly start asking themselves the same question: Could next year be the year we buy a home? You don’t need a lender call, a credit pull, or a spreadsheet meltdown to start answering that. This is a simple, end-of-year self-assessment to help you gauge where you stand and what to work on over the next few months. Think of it as a financial temperature check. No pressure. Just clarity.
Your Income: Is It Stable?
You don’t need to be at the same job for ten years. You do need consistency. Ask yourself:
· Have I had a steady income for the last 12–24 months?
· Am I salaried, hourly, or self-employed, and has that been relatively consistent?
· Am I expecting a major job change soon?
Stability matters more than raises. If income is predictable, you’re already checking an important box.
Your Credit: Do You Know Where You Actually Stand?
You don’t need flawless credit. You do need awareness. Quick check:
· Do I know my approximate credit score?
· Are there late payments, collections, or high balances I should address?
· Has my credit improved over the last year?
The end of the year is a great time to clean things up. To lower balances, dispute errors, and set yourself up for better options next year.
Your Savings: Not Just “Down Payment” Money
Buying a home isn’t only about the down payment. You’ll want a little breathing room. Good questions to ask:
· Do I have funds set aside beyond day-to-day expenses?
· Could I cover moving costs, inspections, or initial repairs if needed?
· Do I still have an emergency cushion after buying?
You don’t need to have everything saved today. You just want a plan and time to build it.
Your Monthly Comfort Level: Do You Know Your Number?
Forget interest rates for a second. This part is about you. Ask yourself:
· What monthly payment would feel comfortable—not stressful?
· If rent went up again, would buying start to feel like a better deal?
· Am I budgeting based on reality, not best-case scenarios?
When buyers know their comfort zone, decisions get much easier (and less emotional).
Your Timeline: Is “Next Year” a Real Goal or a Maybe?
There’s no wrong answer here; only honest ones. Be clear about:
· Are you thinking early next year, late next year, or just “sometime”?
· Are there life changes coming up (marriage, kids, relocation)?
· Would you be disappointed if you weren’t in a home by year-end?
Clarity beats urgency every time.
What If You’re Not Quite Ready Yet?
That’s not a failure. That’s information. Most strong buyers don’t wake up ready. They prepare. A few small moves over the next six months - credit tweaks, savings automation, better budgeting - can completely change your position. The goal right now isn’t to buy a house. It’s to set yourself up to have options next year. And that starts with knowing where you stand.