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Homeownership Prep Education - May 2026

So You Want to Buy a Home — Here Is How to Actually Get Ready

Published May 2026 | Dare to Dream Credit


Homeownership is one of the most powerful ways to build generational wealth — but most people wait until they are ready to buy before they start preparing. By then, it is often too late to fix what matters most. Here is what real homeownership prep looks like, and how to start right where you are.

Step 1 — Know Your Credit Score and What Is On Your Report

Your credit score is the first thing a lender looks at. But more important than the number is what is behind it. Pull your full credit report at AnnualCreditReport.com and review every line. Look for accounts you do not recognize, incorrect balances, and outdated negative items. Disputing inaccurate information before you apply for a mortgage can meaningfully improve your score — and your interest rate.


Step 2 — Understand What Lenders Are Actually Looking For

Most conventional loan programs want to see a credit score of at least 620, though 740 and above will get you the best rates. Lenders also look at your debt-to-income ratio — how much of your monthly income goes toward existing debt payments. Keeping that ratio below 43 percent puts you in a stronger position. They will also want to see stable employment history, typically two or more years with the same employer or in the same field.


Step 3 — Start Reducing Your Debt Now

If you carry balances on credit cards, prioritize paying them down before you apply for a mortgage. Aim to keep your credit utilization — the percentage of available credit you are using — below 30 percent. Even better, get it below 10 percent. This single move can raise your score significantly in a short period of time.


Step 4 — Save With a Purpose

Lenders want to see that you have enough saved for a down payment and closing costs. While some programs allow as little as 3 to 3.5 percent down, having 10 to 20 percent reduces your monthly payment and eliminates the need for private mortgage insurance. Start a dedicated savings account and treat your monthly contribution as a non-negotiable bill.


Step 5 — Get Pre-Qualified Before You Start Shopping

Pre-qualification shows sellers you are a serious buyer and gives you a realistic picture of what you can afford. It also reveals gaps you still need to close — giving you time to address them before you fall in love with a home you cannot yet qualify for.


Homeownership does not happen overnight — but it does happen with the right preparation.

At Dare to Dream Credit, our Homeowner Prep Program walks you through every step of this process. We help you build the credit profile and financial habits that turn homeownership from a dream into a date on your calendar.

Ready to start? Book a consultation today.



Disclaimer: This content is for educational purposes only and does not constitute legal or financial advice.

Student Loan News of Illinois- Latest Updates

By RUTH HUBERT • May 4, 2026
What Every Student Loan Borrower Needs to Know Right Now Published May 2026 | Dare to Dream Credit Consulting | Ruth Hubert Finance Coach If you have federal student loans, 2026 is a year you cannot afford to ignore. Major changes are happening right now — and what you do not know could cost you. The SAVE Plan Is Over The Department of Education has officially ended the SAVE Plan and is directing the 7.5 million borrowers enrolled in it to exit and select a new legal repayment plan. Borrowers have 90 days after July 1, 2026, to make that switch. If you are currently on SAVE, do not wait — contact your loan servicer now. The Virtual Savvy A New Repayment Plan Is Coming A new income-driven option called the Repayment Assistance Plan, or RAP, launches July 1, 2026. Under RAP, monthly payments are based on your income and number of dependents, and borrowers who make full, on-time payments are protected from runaway interest accumulation. The Virtual Savvy Forgiveness May Now Come With a Tax Bill If your federal student loans are forgiven under an income-driven repayment plan in 2026 or later, the forgiven amount is generally treated as taxable income. That means you could receive a Form 1099-C and owe taxes on the forgiven balance. The only exception is Public Service Loan Forgiveness — forgiveness under PSLF is not considered taxable income. MyOutDesk The Virtual Savvy A New Bill Could Help Laid-Off Borrowers A new House proposal would allow borrowers who lose their jobs to receive forgiveness credit during unemployment deferment — even when no payment is made. Under current rules, time spent in unemployment deferral does not count toward forgiveness progress. This bill is still being considered, but worth watching closely. Wishup What You Should Do Right Now Check your current repayment plan at StudentAid.gov. If you are on SAVE, start exploring your options immediately. And if you have questions about how these changes affect your financial future, that is exactly what we are here for. Book a consultation with Dare to Dream Credit today. Disclaimer: This content is for educational purposes only and does not constitute legal or financial advice.