Homebuyer Readiness Score Explained

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Homebuyer Readiness Score Explained (2026): What Your Number Means, and What to Fix First

Last updated: Jan. 5, 2026 • Pair this with the Homebuyer Readiness Calculator

A readiness score is only useful if it tells you what to do next. This guide helps you interpret your number like a practical checklist: what’s strong, what’s risky, and what fixes move the needle fastest. Then it gives you three interactive tools on this page: a score explainer, a DTI guardrails slider, and a document checklist you can copy.

Quick answers Explain my score DTI guardrails Document checklist Full guide FAQs References

Run the Readiness Calculator Explain my score Talk to an agent

Quick Answers

Fast clarity before you scroll.

If your score is 80+

• You likely have enough stability and documentation to start shopping seriously.
• Confirm your *real* payment comfort (PITI + HOA), not just approval amount.
• Keep credit steady: no new debt, no big transfers, no surprise financing.

If your score is 60–79

• You’re close. One or two gaps (DTI, reserves, or credit utilization) usually explain the score.
• Do a short “prep sprint,” then rerun the calculator with updated numbers.
• Talk to a lender early so conditions show up now, not mid-contract.

If your score is under 60

• Don’t panic. It usually means “build the runway,” not “never buy.”
• Start with the fastest levers: revolving debt, reserves, and documents.
• A rushed offer with a shaky file tends to cost more later.

If you want to buy in 60 days

• Get preapproved with documents, not a soft quote.
• Choose your payment target first, then shop homes that fit it.
• Keep a repair/moving buffer so inspection week doesn’t derail closing.

Educational planning only. Your lender and a specific property determine the final outcome.

Top questions buyers ask first

Is a readiness score the same as preapproval?

No. A readiness score is a planning signal. Preapproval is a lender reviewing credit and documents and issuing a letter (often with conditions). Use the score to get your plan tight before you start writing offers.

What score is “good” for buying soon?

As a planning rule, higher scores usually mean fewer bottlenecks. But “good” depends on your timeline and program. If your score is close, a short prep sprint can make your file cleaner fast.

What should I fix first: credit, cash, or DTI?

Fix what removes the most friction quickly. For many buyers, that’s revolving debt (utilization), a cash cushion, and document readiness. If your estimated DTI is high, that often becomes the #1 priority.

Interactive: Explain my readiness score + build my 30-day plan

Already ran the calculator? Enter your score below and pick what you’re trying to solve. You’ll get a focused plan you can copy. If you don’t have a score yet, run the Homebuyer Readiness Calculator first.

Your inputs

Readiness score (0–100)

Tip: Use the exact score from the calculator for the best match.

When do you want to buy? Select one Within ~60 days 2–6 months 6+ months Not sure What feels hardest right now? Select one Payment / budget comfort DTI / debt load Cash to close / reserves Credit score / utilization Documents / underwriting Making strong offers

Explain my score Reset

Your plan

Waiting for a score

Enter your score and click “Explain my score” to generate a focused plan.

Copy my plan Run the full calculator

Interactive: DTI guardrails (adjust the payment and watch the ratio)

DTI is one of the fastest ways buyers get surprised. This quick slider shows how your estimated DTI changes as you adjust a target housing payment. It’s not underwriting, but it’s a strong planning signal. Then confirm details in the full calculator.

Your numbers

Gross monthly income Monthly debts (no mortgage) Target housing payment (PITI + HOA)

Tip: If you’re unsure, start with your “comfortable” payment, not the maximum approval.

Reset Use the full readiness calculator

DTI snapshot

Enter income + payment

Estimated DTI will appear here once you enter income and a target payment.

Interactive: Document checklist (make underwriting boring)

A lot of “not ready” is simply missing paperwork. Use this checklist to build a clean document folder. Check items off, watch progress update, and copy the list to send to yourself.

Your document pack

0 of 10 complete

Two most recent pay stubs (all pages) W-2s for the last 2 years (or 1099s) Federal tax returns (last 2 years, if needed) Bank statements (last 2 months, all pages) Photo ID (driver license or passport) Proof of funds for down payment / closing costs List of monthly debts (auto, student loans, cards) Address history (2 years) + landlord contact if renting Gift letter info (if using gift funds) Explanations ready for large deposits or job gaps

Copy my document list Reset Ask an agent what to prep

How to use your readiness score the right way

The most common mistake buyers make is treating readiness like a mood. One day you feel ready because you found a great listing. The next day you feel not ready because rates moved or someone mentioned closing costs. A good readiness score is simply a shortcut to the boring truths that decide real transactions: budget pressure, documentation, and timing.

1) Start with the payment, not the price

Home price is emotional. Monthly payment is reality. If your score is “close” or “prep,” the fix is often not a bigger down payment. The fix is choosing a payment you can sustain even after taxes, insurance, HOA, and normal life expenses show up.

• Use total payment: estimate principal, interest, taxes, insurance, and HOA.
• Build breathing room: if one surprise bill breaks the plan, the plan is too tight.
• Set a ceiling now: a rule protects you when you fall in love with a house.

2) DTI is a pressure gauge

DTI is not only a lender number. It’s a stress number. As your ratio climbs, you lose flexibility: you can’t absorb repairs easily, you can’t handle closing delays as well, and underwriting gets more picky. If your slider shows high DTI, treat it as a planning alarm.

3) Cash cushion is not optional “extra” money

Buyers budget for down payment, then forget the rest: inspections, appraisal gaps, moving costs, utility deposits, and the first repair you can’t unsee. A cushion turns emergencies into inconveniences. It also makes your offer stronger because you can handle small surprises without panic.

4) Credit readiness is about patterns, not perfection

A higher score helps, but underwriting is also reading your behavior. If your utilization is high, pay it down. If you’re about to apply, avoid new credit, furniture financing, and big unexplained transfers. Make your file boring.

5) Document readiness makes offers safer

Sellers don’t just pick the highest offer. They pick the offer most likely to close. Clean docs and a real preapproval letter reduce uncertainty. Use the document checklist above to build a folder you can share quickly with your lender when the right home hits the market.

Problem	Fastest fix	Why it matters
DTI too high	Lower revolving balances or reduce target payment	Improves approval odds and reduces monthly stress
Cash cushion thin	Build reserves and budget moving + inspection costs	Prevents draining accounts and reduces surprises
Docs not organized	Create a folder and gather key statements	Makes underwriting faster and offers stronger

Your next step

Run the Homebuyer Readiness Calculator, then come back here and plug your score into the interactive explainer. Your goal is not a perfect score. Your goal is a clean plan that survives underwriting, inspection week, and your first 60 days of ownership.

More readiness FAQs

How accurate is a readiness score?

It’s a planning tool, not an approval. It helps you spot common bottlenecks (DTI, reserves, docs) early so you can fix them before offers.

Do I need 20% down to be “ready”?

No. Many buyers use lower down payment options. Readiness is more about payment comfort, reserves, and a clean documented file.

Should I stop looking at homes until I’m ready?

You can browse to learn neighborhoods and pricing, but avoid falling in love without a plan. If your score says prep, focus on the fixes first.

What’s the difference between prequalification and preapproval?

Prequalification is usually a rough estimate. Preapproval typically means documents and credit were reviewed. The stronger your preapproval, the stronger your offer.

What should I avoid right before applying?

Avoid new credit, big transfers, and financing purchases. Keep accounts stable and documentable so your file doesn’t trigger extra conditions.

Can LRG help if my score is low?

Yes. Low usually means “prioritize the blockers.” An agent can help you sequence the work and connect you with a lender for a realistic plan.

What should I do today if I want to buy this year?

Run the calculator, build a document folder, and set a realistic payment target. Then work the top 1–2 fixes first (often DTI and reserves).

References

• CFPB homebuying education: Owning a Home
• Annual credit reports: AnnualCreditReport.com
• Freddie Mac rate trends (education): PMMS

Educational content only. Loan terms and approvals depend on lender underwriting and property details.