Home Buying Starts Now: 6 Smart Financial Moves to Make Before the Holidays Are Over

How can I financially prepare to buy a home while navigating the holiday season?

The holidays are full of joy, family, and, unfortunately, overspending. If homeownership is in your sights for the coming year, what you do with your money over the next few months matters more than ever. Here's how to keep your financials in check so you don’t sabotage your shot at buying a home.

1. Put Those Credit Cards Away

Tempted to open a store credit card for a quick discount? Don’t. New credit lines and rising balances can increase your debt-to-income ratio and hurt your credit score — both of which are critical to mortgage approval. Skip the holiday credit card churn this year. Your future home is worth it.

2. Don’t Buy Planes, Trains, or Automobiles

Big-ticket items like cars (even with “small” payments) can tank your mortgage pre-approval. That $400/month car note might seem manageable, but lenders include every monthly debt in your mortgage calculation. Wait until after closing day to upgrade your ride — not before.

3. Check Your Credit Score

Your credit score is your mortgage golden ticket. While a 740+ score unlocks the best interest rates, many loan programs go as low as 540. To boost your score:

• Pay all bills on time
• Request credit limit increases (but don’t spend them)
• Use less than 30% of your available credit

A little credit discipline now can save you thousands in interest later.

4. Start an Emergency Fund

A six-month cushion is ideal, but anything is better than nothing. Use holiday gift season to your advantage: ask for cash instead of stuff, and stash your tax refund instead of spending it. You’ll thank yourself when an unexpected home repair pops up post-closing.

5. Find a Mortgage Lender Early

Before you even start browsing listings, talk to a mortgage lender. We can connect you with trusted pros who know the ins and outs of current loan guidelines. Read reviews, ask questions, and avoid lenders with no track record. This one step can make or break your home buying experience.

6. Get Pre-Approved the Right Way

A pre-approval proves you’re serious — and shows sellers you’re ready to buy. You’ll need:

• Two years of address and employment history
• Recent pay stubs and bank statements
• Monthly expenses and any property info (if applicable)
• Tax returns and W-2s for all borrowers

And once you start the process: no job changes, no big purchases, and no missed payments.

Buying a home starts well before you step inside that first showing. And the financial decisions you make over the holidays can either help or hurt your home buying future. Choose wisely — and give yourself the gift of homeownership next year.

Ready to Buy Smarter?

Schedule your buyer consultation with Carter Signature Properties today. Let’s map out a clear path to homeownership — from your first credit check to your first set of keys.