The short answer
Getting ready to buy comes down to four things: a credit profile a lender can approve, enough cash for a down payment and closing costs, a monthly payment you're comfortable with, and stable income and paperwork. Start working on them three to twelve months before you plan to shop, not after you've found a house.
Talk with a lender early. A pre-approval conversation costs little and tells you exactly what to fix before it becomes urgent.
Step 1: Know your credit before a lender does
Pull your credit reports from all three bureaus through AnnualCreditReport.com, the free site authorized by federal law. Look for accounts you don't recognize, late payments reported in error, and balances that are higher than you thought. Dispute errors directly with the bureau.
In the months before you apply, pay every bill on time, keep credit card balances low relative to their limits, and avoid opening new accounts or financing large purchases like a car or furniture. Those changes can affect both your approval and your rate.
Shaune's Take on Credit
In this short video, I talk about getting your credit ready before you apply for a home loan.
Step 2: Plan the cash, not just the down payment
Buyers often budget for the down payment and forget closing costs, the option fee and earnest money, the inspection, moving, and a cushion for the first months in the house. Your lender can estimate closing costs for your loan type; ask early so the number isn't a surprise.
Loan programs differ in how much they require down. Ask a lender to compare the options you qualify for, including how mortgage insurance changes the monthly payment at each down payment level.
Step 3: If you're thinking about your 401(k)
Some buyers use retirement savings toward a down payment, usually through a 401(k) loan rather than a withdrawal. The IRS allows plans to offer loans, and a loan generally isn't taxed as a distribution if it's repaid on the plan's terms. A withdrawal is different and may be taxed and penalized.
Not every plan offers loans, terms vary by employer, and leaving your job can change the repayment timeline. Money borrowed from your retirement also stops growing while it's out. Before using this route, talk with your plan administrator and a CPA or financial advisor. This article is educational, not tax or financial advice.
Step 4: Set your own payment ceiling
A pre-approval tells you the most a lender will allow. Your comfortable budget is often lower. In Denton County, property taxes, any MUD or PID rate, HOA dues and homeowners insurance can add a lot to principal and interest, so estimate the full monthly payment for the kind of home you want.
Use Shaune Corbett Group's Monthly Payment Calculator with realistic tax, insurance and HOA figures, then build a Personalized Move Plan to put the rest of your timeline in order.