A step‑by‑step plan to get you mortgage‑ready in 4-6 years—without guesswork. Start with a simple budget, build credit the right way, invest for your down payment and closing costs, and lock in a plan to lower your future interest rate.

Who this is for:

• Future first‑time buyers who want a clear plan
• Renters rebuilding credit
• Anyone starting from $100–$300/month savings who wants a home in 4-6 years

How the plan works (4 phases)

Phase 1 — Budget + Cash Flow (Months 1–3)

• Create a budget and stick to it! If you need a budgeting app, you can try 
• Set your Starter Target: $10–$20/day, 5 days/week → $200–$450/month saved
• Create sinking funds: Down Payment, Closing Costs, Emergency (1–2 months worth of monthly payments)
• Auto‑transfer on payday. No manual willpower needed.

Phase 2 — Credit Build/Repair (Months 1–18)

• Pull full tri‑merge or consumer reports and list negative items
• Set up payment calendar + autopay on all revolving accounts
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• Target metrics by Month 12–18:
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  • Utilization under 9% on each card
  • No new late payments
  • 2–3 active tradelines aged 12+ months

Dispute/Repair Framework

1. Verify accuracy (dates, balances, ownership)
2. Goodwill letters for isolated lates
3. Pay‑for‑delete only when cost/benefit is clear
4. Avoid closing oldest cards; keep average age strong

Credit Milestones

• 620: Minimum viable for many programs
• 640–660: Better pricing options
• 680–700+: Strong approval odds and lower MI

Phase 3 — Invest While You Wait (Years 1–5+)

• Open a retirement or brokerage account of your choice.
• Contribution target: $300–$600/month or as much as possible
• Roth IRA strategy: Contributions can be withdrawn tax‑ and penalty‑free anytime; earnings up to $10,000 may be used toward a first‑time home purchase after 5 years (confirm rules before withdrawal).

• Consider a split: 70% long‑term retirement, 30% Home Fund

Example Path (Illustrative purposes only, not investment advice, seek professional for investing advice)

• $400/mo for 5 years at 8% avg return ≈ ~$29,000 balance
  • Potential uses: down payment, closing costs, points to buy down your rate

Important: Investing involves risk and isn’t guaranteed. Returns vary. See disclosures below.

Phase 4 — Pre‑Approval to Keys (Months 60–96)

• Mortgage Readiness Check (free checklist + call)
• Optimize DTI: Pay down balances; avoid new loans in final 120 days
• Lock in seller concessions plan to cover closing costs and rate buydown
• House hunt with real estate professional for the best option for you.

Rate Buydown Game Plan (Why saving extra matters)

• Example: Buying points can lower your payment 
• Use seller concessions + your saved points budget to hit a comfortable monthly payment and possible help with closing costs.

Frequently Asked Questions

• Can I really use Roth IRA money for a home?
  You may withdraw contributions anytime; earnings have additional rules including a 5‑year clock and a $10,000 lifetime cap for first‑time home purchase exceptions. Check the latest IRS rules and talk to a tax pro before acting.

• What credit score do I need?
  Program minimums vary by loan type and lender overlays. Generally 580–620 gets you in the conversation; higher scores improve pricing and terms.

• How much do I need for closing costs?
  Plan for ~2–4% of the purchase price; seller concessions and lender credits can offset.

About Me

Licensed loan officer & former real estate agent. I help renters become buyers with structured plans, not platitudes.

Disclosures & Compliance

• Not Financial/Tax Advice: Educational content only. Consult a licensed financial advisor or tax professional for personalized advice.
• Mortgage/RESPA Compliance: I do not accept anything of value from settlement service providers in exchange for referrals. 
• Investment Risk: Investing involves risk, including possible loss of principal. Past performance is not indicative of future results.
• Privacy: Your information will never be sold. See Privacy Policy.