July Financial Checkup: 5 Numbers Every Homebuyer Should Know Right Now
Here we are, the middle of the year. The kids are out of school, your inbox is full of vacation deals, and the last thing you're probably thinking about is your finances.
But July is actually one of the best times to pause, take stock, and get honest about where you stand financially, especially if homeownership is somewhere on your horizon. Whether that's this year or next year, the decisions you make now affect what you qualify for and what you'll pay.
We put together five numbers that tell the real story of your mortgage readiness. Think of this as a midyear checkup, not a test, just a snapshot.
You don't need perfect numbers to buy a home. But knowing your numbers means you're never walking in blind, and that changes everything.
Let's get into it.
NUMBER 1: Your Credit Score
The number lenders look at first and the one you can actually influence.
Your credit score is the single most visible number in the mortgage process. It determines whether you qualify, which programs are available to you, and, critically , what interest rate you're offered.
Here's a quick reference for where different scores land you:
580+
FHA loan eligible (3.5% down)
One of the most common first-time buyer programs
620+
Most conventional loan programs
Broader product options open up here
640+
Better rates begin here
A meaningful threshold for savings over the life of the loan
700+
Strong territory
Best rates, most flexibility, all program doors open
Here's the part most people don't realize: your credit score is not fixed. It's a living number you can move, intentionally, in a matter of months with the right strategy.
What moves it: Paying down revolving balances (credit cards), not opening new accounts, keeping old accounts open, and disputing inaccurate items. We partner with a credit repair service if help is needed. PLUS, if you go through the program, we will give back (up to $1,000 lender creditThe) of what you paid to repair it at the closing table.
A 40-point score improvement can mean a meaningfully lower interest rate. On a $300,000 loan, that could be hundreds of dollars a year in savings. It's worth knowing where you stand.
Action step: Pull your free credit report at AnnualCreditReport.com. Know your score before anyone else does.
NUMBER 2 Your Debt-to-Income Ratio (DTI)
The number that tells lenders how much breathing room you have.
Your debt-to-income ratio, DTI, is your total monthly debt payments divided by your gross monthly income. It's one of the most important qualifying factors in mortgage lending and one of the least talked about.
Here's how to calculate it quickly:
DTI
Monthly debts ÷ Gross monthly income × 100
Example: $1,500 in debts / $5,000 income = 30% DTI
So what's a good DTI? Here's the general landscape:
≤36%
Ideal DTI — strong qualifying position
Most programs prefer this range
43%
Maximum for most conventional loans
Still qualifiable with strong credit and reserves
50%
Upper limit for FHA in some cases
Compensating factors required (credit, reserves)
Monthly debts that count toward DTI include car payments, student loans, credit card minimums, personal loans, child support, and your projected new mortgage payment.
Monthly expenses that do NOT count: utilities, groceries, insurance, subscriptions, phone bills.
The lever here: If your DTI is high, the two ways to improve it are (a) increase your income, easier said than done, or (b) pay down debt. Even eliminating one car payment or a high credit card minimum can meaningfully shift your DTI.
Action step: Add up your monthly minimums + your estimated mortgage payment. Divide by your gross income. That's your DTI. If it's above 43%, let's talk strategy.
NUMBER 3: Your Savings, and What You Actually Need
Spoiler: probably less than you think.
Most people overestimate how much they need to buy a home. The 20% down payment myth is deeply embedded in our culture, and it's keeping buyers on the sidelines who are already qualified.
Here's the real breakdown for a $275,000 home in San Antonio:
$0
VA loan (eligible veterans/military)
No down payment, no PMI—one of the best loan products available
$0
USDA loan (eligible rural/suburban areas)
Income limits apply—ask us if your target neighborhood qualifies
$8,250
FHA loan — 3% down on $275K
Most popular first-time buyer program in Texas
$8,250+
Conventional loan — 3–5% down options exist
Mortgage insurance applies below 20% down
Texas has two of the nation's strongest down payment assistance programs—TSAHC and TDHCA—that can provide grants or forgivable second loans to cover your down payment and sometimes closing costs. Many San Antonio buyers qualify and don't know it.
Beyond the down payment, you'll also want to plan for closing costs, typically 2–3% of the loan amount, or roughly $5,500–$8,250 on a $275K home. Some sellers will negotiate to cover these; DPA programs sometimes cover them too.
Action step: Tell us what you have saved and we'll show you exactly which programs you qualify for and what your real out-of-pocket number looks like. Most buyers are surprised.
NUMBER 4: Your Income, and How Long You've Had It
Stability matters more than size.
Lenders don't just want to know how much you make, they want to know how consistently you've made it. Income documentation is a core part of mortgage qualifying, and understanding what they're looking for saves you time and surprises.
Here's what different income types look like to a lender:
W-2
2 years at the same employer or in the same field
Most straightforward—pay stubs + W-2s
1099
2 years of 1099s + tax returns averaged
Gross income minus business expenses
Self-Employed
2 years business tax returns (1120S, Schedule C)
Bank statement loans available if returns understate income
Part-Time / 2nd Job
2-year history of that income
Must be documented and likely to continue
The key phrase is "two years"; that's the standard look-back period for most loan programs. If you've recently changed jobs but stayed in the same industry, you may still be in good shape. If you've gone from W-2 to self-employed recently, the timing of your purchase matters.
The self-employed exception: Many self-employed borrowers find that their tax returns, which minimize income to reduce taxes, also minimize their qualifying income. Bank statement programs exist specifically for this situation. If this is you, don't assume you won't qualify. Let's look at the full picture.
Action step: Gather your last two years of W-2s or tax returns. If your income has been growing, that trend works in your favor.
NUMBER 5: Your Target Home Price, and What's Realistic
The number that ties everything together.
Here's the number most buyers think about first but should actually think about last, after the first four. Your target home price should be a function of your income, DTI, credit, and savings, not just a number you picked from browsing Zillow.
A general affordability rule of thumb: most buyers can comfortably afford a home priced at 3–4x their gross annual income, depending on debt load and down payment.
$60K/yr
Comfortable range: $180K–$240K
With low debt and a solid down payment, potentially more
$80K/yr
Comfortable range: $240K–$320K
San Antonio's median home price is in this territory
$100K/yr
Comfortable range: $300K–$400K
Stronger DTI position; more product flexibility
$120K+/yr
Comfortable range: $360K–$480K+
Move-up, new construction, or custom-build territory
San Antonio's housing market currently offers strong inventory across a range of price points, from affordable starter homes in the $200s to custom new construction in the $400s and beyond. Knowing your realistic number going in means you're shopping with intention, not wishful thinking.
A note on rates: Interest rates directly affect your purchasing power. We model this for you during your consultation so you understand exactly what different rate scenarios look like.
The best home you can afford is the one where the payment is comfortable, not stretched. We'll always tell you the honest number, not just the maximum you qualify for.
Action step: Don't guess your number. Let us run it. We'll tell you exactly what purchase price aligns with your income, debt, and down payment, and show you how different scenarios compare.
What To Do With These Numbers
Here's the thing about a financial checkup, it's only useful if you do something with it. And for most people, the most valuable thing you can do is talk to a loan officer before you think you're ready.
Not because we'll push you to buy before you should. Exactly the opposite. We'll tell you honestly where you stand, what's working in your favor, and, if anything needs work, what the specific steps are to get there.
A lot of our best client relationships start six to twelve months before someone buys. They come in, we look at the numbers together, we make a plan, and when it's time to move, they're ready.
Knowing your five numbers doesn't mean you need to be perfect at all five. It means you walk into this process with your eyes open, and someone in your corner who can work with what you've got.
That's what we do at TLP Mortgage. Not just transactions. Strategy built for real life.
Ready for Your Mid-Year Mortgage Checkup?make;
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FHA loans require a minimum score of 580 with 3.5% down. Most conventional loans require 620+. The higher your score, the better your rate — but many first-time buyers qualify with scores in the 580–640 range.
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It depends on the loan type. VA loans require $0 down for eligible veterans. FHA loans require 3.5% down. Texas DPA programs through TSAHC and TDHCA can cover the down payment for qualifying buyers.
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Your DTI is your total monthly debt payments divided by your gross monthly income. Most conventional loans require a DTI of 43% or less. A lower DTI means more borrowing power and better loan terms.
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Most lenders want to see two years of consistent employment in the same field. W-2 employees, self-employed borrowers, and 1099 contractors can all qualify — documentation requirements differ by income type.
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A general rule is 3–4x your gross annual income, adjusted for your debt load and down payment. In San Antonio, that typically puts buyers in a range from the mid-$200s to $400K+. A free mortgage consultation will give you a precise number.
