Financial Planning for a New Home in the New Year
If buying is on your list, don’t wait for spring competition. Here’s your buy-ready plan—short, practical, and linked to tools you can use now.
Who’s ready to move early in the year?
- Renters with renewals coming up. Pressure-test rent vs. own with the Loan Calculator.
-
Growing households. New baby, multigenerational living, or a true home office—your space needs to change.
-
Remote or hybrid workers. Now more than ever, buyers have a wider range of options.
-
Equity-rich downsizers or move-up buyers. Start by understanding the local market.
Set a budget that fits real life
List income and fixed expenses. Then model principal, interest, taxes, insurance, and HOA in the Loan Calculator. Lenders focus on your debt-to-income ratio—lower is better for approval and rate. Add a buffer for utilities, maintenance, and surprises.
Pro tip: Test rates ±0.5% and swap tax assumptions by township. Costs can shift between Lititz, Manheim Twp, East Hempfield, Warwick, and Lancaster City—small changes move comfort fast.
Tune up your credit (quick wins help)
Pull free reports at AnnualCreditReport and scan for errors, high utilization, or late marks. For a refresher on what shapes scores, review these credit score basics.
Fast moves: set autopay for every bill; pay revolving balances below ~30% of limits; dispute report errors now so fixes post before pre-approval.
Plan the down payment + closing costs
There isn’t one “right” number. The down payment guide (CFPB) explains trade-offs and mortgage insurance. Don’t forget closing costs—lender, title, taxes, and prepaids.
Get pre-approved (not just pre-qualified)
A real pre-approval verifies income, assets, credit, and Debt-to-Income (DTI) ratio—and strengthens your offer. Aim to be pre-approved before serious touring, so you can act the day the right home hits the market.
December → January: your simple, local timeline
Prep & polish
- Model payments in the Loan Calculator; test rates and compare taxes for Lititz /Manheim Twp / East Hempfield / Warwick / Lancaster City.
-
Pull credit reports; dispute errors; drop card utilization <30%.
-
Map cash with the down payment guide and closing costs; automate transfers to savings.
-
Establish your list of must-haves and “wont’s” so searches align with budget + lifestyle.
Paperwork & action
- Choose a lender and complete pre-approval.
-
Lock your price band using the letter and the Loan Calculator.
-
Tour homes that fit both the math and your non-negotiables; refine trade-offs (location vs. space vs. condition).
-
Align offer strategy: contingencies, timing, and negotiation plan.
Quick answers (the ones everyone asks)
How much house can I afford?
- Model payments (include taxes, homeowners’ insurance, and any HOA dues) in the LoanCalculator and align with debt-to-income ratio guidance.
Do I need 20% down?
- Not always. Weigh mortgage insurance vs. cash flexibility in the down payment guide.
When should I get pre-approved?
- Before you go on a tour, please obtain pre-approval by contacting us.
Start the New Year with a plan
Want a quick plan tailored to your timing and budget? Contact us to start your plan. Run scenarios in the Loan Calculator and—if you’re also selling—check What’s My Home Worth? to see how far your equity goes. Make a confident decision in Lancaster County—without the noise.
*Blog submitted from Jeremy Ganse, Realtor
Jeremy Ganse, Realtor
RE/MAX SmartHub Realty
930 Red Rose Court
Lancaster, PA 17601
717-208-4240 (Cell)
717-208-4444 (Office)
877-271-5520 (Toll free)
