Blog – CTeBockhorst's Blog

Why Your Spending Habits Matter More Than Your Income When Buying a Home

July 10, 2026 by Coleen TeBockhorst

Many people believe that earning a higher income automatically makes buying a home easier. While income certainly plays an important role, it is only part of the equation. How you manage the money you earn can have an even greater impact on your ability to qualify for a mortgage and comfortably afford homeownership. Developing healthy spending habits before you begin your home search can put you in a much stronger financial position.

Create a Realistic Monthly Budget
Understanding where your money goes each month is one of the best ways to prepare for homeownership. Review your monthly income and expenses, including subscriptions, dining out, entertainment, and discretionary spending. Identifying areas where you can reduce unnecessary expenses may help you save more for your down payment, closing costs, and future home expenses.

Keep Your Debt Under Control
Mortgage lenders consider your debt-to-income ratio when evaluating your loan application. Even if you have a strong income, carrying large credit card balances or other monthly debt payments can affect how much home you can comfortably afford. Paying down debt before purchasing a home may improve your financial profile and provide greater flexibility in your monthly budget.

Build Healthy Financial Habits
Small financial decisions made consistently over time often have a greater impact than occasional large savings. Setting aside money each month, paying bills on time, and avoiding unnecessary purchases can strengthen your financial foundation. These habits not only prepare you for buying a home but also make it easier to manage the ongoing responsibilities of homeownership.

Think Beyond the Mortgage Payment
Owning a home involves more than making a monthly mortgage payment. Utilities, homeowners insurance, maintenance, and unexpected repairs should all be part of your financial plan. Buyers who develop strong budgeting habits before purchasing a home are often better prepared to handle these additional expenses without feeling overwhelmed.

Work With Your Mortgage Professional
A mortgage professional can help you understand how your overall financial picture affects your home buying options. Together, you can review your budget, discuss ways to strengthen your financial position, and determine a comfortable price range that supports your long-term goals.

Buying a home is not simply about how much money you earn. It is about how well you manage your finances before and after closing. By developing smart spending habits today, you can build the confidence and stability needed to enjoy homeownership for years to come.

How Much Emergency Savings Should You Keep After Buying a Home?

July 9, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but your financial planning should not stop once you receive the keys. While it is tempting to put every available dollar toward your down payment or decorating your new space, maintaining an emergency savings fund is one of the smartest decisions you can make. Having money set aside for unexpected expenses can help you enjoy homeownership with greater confidence and less financial stress.

Why Emergency Savings Matter
Owning a home comes with responsibilities that renters often do not experience. A water heater can stop working, an appliance may need replacing, or a storm could cause unexpected damage. Even smaller repairs can quickly add up. An emergency fund allows you to handle these situations without relying on credit cards or disrupting your monthly budget.

How Much Should You Save?
While every homeowner’s financial situation is different, many financial experts recommend having at least three to six months of living expenses in an emergency fund. If purchasing a home reduces your savings, make rebuilding that fund one of your first financial goals after closing. Even setting aside a small amount each month can help your savings grow over time.

Start Small and Stay Consistent
Building an emergency fund does not have to happen overnight. Set up automatic transfers into a dedicated savings account and treat those contributions like any other monthly bill. Consistency is often more important than the amount you save each month. As your income grows or your expenses change, you can continue increasing your savings.

Separate Emergency Savings From Other Goals
It is important to keep your emergency fund separate from money you are saving for vacations, home upgrades, or holiday shopping. Knowing your emergency savings is reserved for true unexpected expenses can provide peace of mind and help you avoid making emotional financial decisions when surprises happen.

Talk With Your Mortgage Professional
Your mortgage professional can help you determine a comfortable home purchase budget that allows you to maintain healthy savings after closing. Buying a home should strengthen your financial future, not leave you feeling stretched too thin. Planning ahead can help you enjoy your new home while staying prepared for life’s unexpected moments.

A home is one of the biggest investments you will ever make. Protecting that investment starts with protecting your financial well-being. Building and maintaining an emergency savings fund gives you the flexibility to handle unexpected expenses while enjoying everything homeownership has to offer.

How to Build a Home Buying Budget That Still Lets You Enjoy Life

July 8, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but it should not mean giving up everything you enjoy. A well-planned budget helps you become a homeowner while still making room for vacations, hobbies, family outings, and the occasional dinner out. The goal is to create a financial plan that supports your lifestyle instead of limiting it.

Start With Your Monthly Income
Before shopping for a home, take an honest look at your monthly income and expenses. List everything from utilities and groceries to streaming services and gym memberships. Knowing where your money goes each month gives you a clearer picture of what you can comfortably afford without stretching your finances too thin.

Leave Room for Everyday Living
Many buyers focus only on what they can qualify for, but qualifying for a certain loan amount does not always mean it is the best choice. Think about the activities that are important to you, whether it is traveling, dining out, saving for retirement, or supporting your children’s activities. Your housing payment should allow you to continue enjoying the life you have worked hard to build.

Plan for Unexpected Expenses
Homeownership comes with expenses that renters may not experience. Appliances eventually need replacing, small repairs arise, and seasonal maintenance becomes part of owning a home. Setting aside money each month for these costs can help you avoid financial stress when unexpected repairs appear.

Build Savings Into Your Budget
A healthy budget includes more than monthly bills. Continue contributing to your emergency fund and long-term savings after purchasing your home. Maintaining financial flexibility provides peace of mind and helps you prepare for life’s unexpected changes without relying on credit cards or loans.

Work With a Mortgage Professional
A mortgage professional can help you understand different loan options and estimate monthly housing costs beyond just the mortgage payment. Property taxes, homeowners insurance, and other expenses all play a role in determining what fits comfortably within your budget. Together, you can find a payment that supports both your homeownership goals and your overall financial well-being.

Owning a home should be a source of pride and stability, not financial worry. By creating a realistic budget that balances your housing costs with the lifestyle you enjoy, you can feel confident that your new home supports both your present and your future.

Should You Buy a Home Before Your Lease Ends?

July 7, 2026 by Coleen TeBockhorst

Buying a home before your lease expires may seem like paying for two places at once, but in many cases it can actually make the transition smoother and less stressful. Every situation is different, and understanding your options can help you decide whether overlapping your lease and mortgage is the right move.

Consider Your Timeline
The home buying process does not always follow a predictable schedule. A closing date can move, repairs may take longer than expected, or your moving plans could change. Having a little overlap between your lease and your new home gives you flexibility instead of feeling rushed.

Compare the Financial Impact
Paying rent and a mortgage for a short period may seem expensive, but it is important to compare that cost with the alternatives. Breaking a lease, paying for temporary housing, or rushing into a decision because of a deadline could end up costing even more. Review your lease agreement carefully and calculate all of your options before deciding.

Enjoy a Less Stressful Move
One of the biggest advantages of overlapping your lease is the ability to move at your own pace. Instead of packing everything into one exhausting weekend, you can gradually move your belongings, clean your rental thoroughly, and settle into your new home without unnecessary pressure.

Give Yourself Time to Prepare Your New Home
Many homeowners want to paint, replace flooring, deep clean, or complete small repairs before moving furniture inside. Having an empty home for a short time allows you to complete those projects much more easily than after you have already unpacked.

Talk With Your Mortgage Professional
Every buyer’s financial situation is unique. A mortgage professional can help you understand how your monthly housing expenses fit within your budget and whether purchasing before your lease ends makes financial sense. With the right planning, a brief overlap can provide convenience, flexibility, and peace of mind during one of life’s biggest transitions.

Buying a home is exciting, and careful timing can make the experience much more enjoyable. By weighing the costs and benefits ahead of time, you can move into your new home with greater confidence and fewer surprises.

What’s Ahead For Mortgage Rates This Week – July 6th, 2026

July 6, 2026 by Coleen TeBockhorst

Unemployment data has shown some rather interesting statistics, with the lowest unemployment rates in the last 14 months being reported. Looking closer at the statistics shows that the unemployment rate hasn’t just dropped due to more people finding work, but also because a significant number of people have stopped looking for work, causing the numbers to appear more favorable.

Among analysts, this is a pretty standout example, and currently, the Federal Reserve has made no indication that it plans to change its policies on interest rates, with many members of the board still favoring increasing rates again. Hourly wages have also seen a modest increase, but this growth has been overshadowed by the increase in inflation for quite some time.

Unemployment Report
The unemployment rate fell in June to a 14-month low of 4.2%. Good news, right? Yes and no. The biggest reason the jobless rate fell is that 720,000 people dropped out of the labor force. This is usually a bad sign, as it means people are too discouraged to look for work.

Consumer Confidence
Consumer Confidence Index rose 0.6 point to 91.2 in June, a figure that is still below its year-ago reading of 95.2. Consumer attitudes worsened after the Iran war caused oil and gas prices to spike, accelerating inflation and causing Americans’ inflation-adjusted incomes to decline. Before the pandemic, the index regularly topped 120.

Primary Mortgage Market Survey Index

15-Year FRM rates saw a decrease of -0.05%, bringing the current rate to 5.79%.
30-Year FRM rates saw a decrease of -0.06%, bringing the current rate to 6.43%.

MND Rate Index

30-Year FHA rates saw an increase of 0.07%, with current rate at 6.17%.
30-Year VA rates saw an increase of 0.07%, with current rate at 6.19%.

Jobless Claims
Initial Claims were reported to be 215,000 compared to the expected claims of 220,000. The previous week landed at 216,000.

What’s Ahead
A very light week lies ahead, with key economic updates including the U.S. Trade Balance and Consumer Credit reports, along with the Fed’s FOMC Meeting Minutes.

Why Small Financial Changes Can Delay Your Closing

July 3, 2026 by Coleen TeBockhorst

As closing day approaches, many homebuyers assume the mortgage process is nearly complete. While that is often true, lenders may continue reviewing your financial information until the final approval is issued. Even small changes to your finances can create new questions, require additional documentation, and potentially delay your closing. Knowing what to avoid can help keep your home purchase on track.

New Credit Can Create New Questions
Opening a new credit card, financing furniture, or applying for a store account may seem harmless, but new credit can affect your mortgage file. Lenders may need to review the new account, calculate the monthly payment, and determine whether it changes your debt-to-income ratio. Waiting until after closing is usually the safer choice.

Large Deposits May Need Documentation
If a large deposit appears in your bank account, your lender may ask where the money came from. This is not unusual, but it can slow the process if records are not available. Funds from gifts, bonuses, transfers, or account withdrawals may need a clear paper trail before they can be accepted.

Changing Jobs Can Affect Timing
Even if a new job is a positive career move, changing employment before closing can require additional review. Lenders may need to verify your new position, confirm income details, and request updated documentation. If you are considering an employment change, speak with your mortgage professional first.

Moving Money Between Accounts Can Add Steps
Transferring funds between accounts may seem simple, but it can create additional documentation requirements. Lenders need to verify the source and movement of funds used for closing. Keeping your accounts consistent can make it easier to confirm available assets.

Small Choices Can Have Big Timing Impacts
Most financial changes do not automatically stop a mortgage approval, but they can add time to the review process. When closing deadlines are approaching, even a small delay can create stress for buyers, sellers, agents, and everyone involved in the transaction.

The safest approach is to keep your financial picture steady until after closing. Before opening credit, making large purchases, changing jobs, or moving money, contact your mortgage professional. A quick conversation can help you avoid preventable delays and get to closing day with greater confidence.

How a Co-Borrower Can Strengthen Your Mortgage Application

July 2, 2026 by Coleen TeBockhorst

Buying a home is an exciting milestone, but qualifying for a mortgage may feel challenging for some buyers. If your income, credit profile, or purchasing power falls short of your homeownership goals, applying with a co-borrower may help strengthen your mortgage application. While adding another borrower is not the right solution for everyone, understanding how it works can help you make an informed decision.

What Is a Co-Borrower?
A co-borrower is someone who applies for the mortgage with you and shares equal responsibility for repaying the loan. Both borrowers’ income, assets, debts, and credit history are generally considered during the approval process. Unlike a cosigner, a co-borrower typically has an ownership interest in the property as well.

How a Co-Borrower May Improve Qualification
One of the biggest advantages of having a co-borrower is combining financial resources. Additional qualifying income may increase your purchasing power, while a stronger credit profile may improve the overall loan application. Depending on your situation, adding a co-borrower may also help you meet debt-to-income requirements that would have been difficult to satisfy on your own.

Choosing the Right Co-Borrower
Not every family member or friend is an ideal co-borrower. Since both parties are legally responsible for the mortgage, it is important to choose someone who understands the long-term commitment. Open communication about financial responsibilities, ownership expectations, and future plans can help avoid misunderstandings after closing.

Be Prepared to Provide Additional Documentation
Applying with two borrowers usually means additional paperwork. Your lender may request income documentation, bank statements, tax records, employment verification, and identification for both applicants. Providing complete and accurate information early in the process can help keep the loan moving efficiently.

Understand the Long-Term Responsibility
A mortgage is a significant financial obligation. Both borrowers remain responsible for making payments on time, regardless of who lives in the home or contributes toward the monthly payment. Before applying together, it is important to discuss how future financial changes or life events could affect both parties.

A co-borrower can be an excellent way to strengthen a mortgage application when it makes sense for your financial situation. By understanding the responsibilities involved and working closely with your mortgage professional, you can determine whether applying together is the right path toward achieving your homeownership goals.

What to Do Financially During the 30 Days Before Closing

July 1, 2026 by Coleen TeBockhorst

The final month before closing is one of the most exciting parts of the home buying journey. It is also one of the most important times to keep your finances as stable as possible. Many buyers believe that once they receive loan approval, they can return to their normal spending habits. In reality, lenders often continue reviewing financial information until just before closing. Taking a few simple steps during these final weeks can help keep your mortgage on track and prevent unnecessary delays.

Keep Your Spending Under Control
Now is not the time to make large purchases, even if they are for your new home. Financing furniture, appliances, or a new vehicle can change your debt levels and may affect your mortgage approval. While it can be tempting to prepare your new home before moving in, waiting until after closing is often the safest choice.

Continue Making Payments on Time
Your payment history remains important throughout the mortgage process. Continue paying every bill by its due date, including credit cards, auto loans, and other monthly obligations. Missing a payment during the final weeks before closing can create additional questions for your lender and may even impact your loan approval.

Avoid Unusual Bank Activity
Large deposits or unexplained transfers between accounts may require additional documentation. If you expect to receive funds from a family member or another source, discuss the situation with your mortgage professional before moving the money. Keeping your bank accounts as consistent as possible can help simplify the underwriting process.

Stay Available for Document Requests
It is common for lenders to request updated information as your closing date approaches. Responding quickly to requests for pay stubs, bank statements, or other documentation helps keep your file moving forward. Having digital copies of important financial documents readily available can save valuable time.

Communicate Before Making Financial Decisions
Life does not stop while you are buying a home. If an unexpected financial situation arises, contact your mortgage professional before making significant decisions. Whether you receive a bonus, change jobs, or need to make a large purchase, discussing it first can help you understand whether it could affect your loan.

The final 30 days before closing are all about consistency. By maintaining your financial habits, responding promptly to document requests, and avoiding unnecessary changes, you can help ensure a smooth path to closing day and the exciting moment you receive the keys to your new home.

What Lenders Mean When They Ask for Updated Financial Documents

June 30, 2026 by Coleen TeBockhorst

Applying for a mortgage does not end once your initial paperwork has been submitted. Many homebuyers are surprised when their lender requests updated financial documents later in the process.

While it may seem repetitive, these requests are a normal part of mortgage underwriting and help ensure your financial situation has remained stable. Understanding why lenders ask for updated documentation can help reduce stress and keep your loan moving toward closing.

Why Updated Documents Are Necessary
A mortgage approval is based on your financial profile at a specific point in time. Because the loan process can take several weeks, lenders often need to verify that your income, assets, employment, and financial obligations have not changed before final approval. Updated documents help confirm that the information used to approve your loan is still accurate.

What Documents You May Be Asked to Provide
Every loan is different, but common requests include recent pay stubs, updated bank statements, or verification of continued employment. If you are self-employed, you may also be asked for additional business documentation. These requests do not necessarily indicate a problem. In most cases, they are simply part of the lender’s standard review process.

Responding Quickly Helps Keep Closing on Schedule
One of the easiest ways to prevent delays is to submit requested documents as soon as possible. Waiting several days to respond can slow underwriting and may affect your scheduled closing date. Keeping your financial records organized throughout the mortgage process allows you to respond quickly whenever additional information is needed.

Keep Your Financial Picture Consistent
While your loan is being finalized, it is important to avoid major financial changes unless you first discuss them with your mortgage professional. Significant deposits, new credit accounts, or large purchases may require additional documentation and could create unnecessary delays. Maintaining financial stability helps keep the approval process moving smoothly.

Communication Makes the Process Easier
Do not hesitate to ask questions if you are unsure why a document has been requested. Your mortgage professional is there to guide you through each step and explain what is needed. Understanding the purpose behind each request often makes the process feel much less overwhelming.

Providing updated financial documents is simply one more step toward homeownership. By staying organized, responding promptly, and maintaining open communication with your lender, you can help keep your mortgage on track and move into your new home with confidence.

What’s Ahead For Mortgage Rates This Week – June 29th, 2026

June 29, 2026 by Coleen TeBockhorst

The latest Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation, has been released. The report indicates that inflation remains elevated across most sectors, although the overall reading came in slightly below expectations.

However, this encouraging development has been tempered by a decline in consumer sentiment, which has fallen for the fourth consecutive month. Much of the pessimism has been attributed to concerns surrounding the conflict in Iran and rising fuel costs.

Despite inflation coming in below forecasts, some members of the Federal Reserve have continued to discuss the possibility of raising interest rates further in an effort to keep inflation under control.

PCE Index
The core personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month. The core annual reading was the highest since October 2023. The Fed’s primary inflation gauge also showed an annual rate of 4.1%, the highest since April 2023.

Consumer Sentinment
Consumer sentiment has tumbled to a fresh record low in May as fears of higher prices grow due to the U.S.-Iran war and elevated oil prices, the University of Michigan’s Surveys of Consumers said Friday.