11/02/2026
My first ever blog post guest is Kalah Stratton! Kalah is a loan officer, NMLS 1553379, at Treadstone Mortgage. I have known her for 15+ years, and she’s been in real estate for over 11 years! I invited her to write because she continues to be a valuable contact for anyone considering buying a house or property. She's been a great resource to me, she is easy to communicate with, I trust her fully, and I hope her article helps you navigate your real estate needs.
Below is Kalah’s article:
“What You Need to Know Before Becoming Mortgage Ready”
So, you’re ready to buy a new home, or you think you may be soon. There are many important things to contemplate before getting a mortgage.
Buying a home is one of the biggest and most important purchases of your life and signing on for a 15- or 30-year mortgage payment can feel…daunting. But if you plan ahead and learn about the mortgage application process, you can be well on your way to becoming mortgage ready in no time.
Understand Your Finances & Plan a Healthy Budget
When you are looking into buying a new home, a good place to start is with a budget. Understanding how much you can comfortably pay toward your mortgage each month will help set the foundation for your home search. It is important that you don’t overextend yourself and can comfortably make your payment each month. Don’t be afraid to take a pen to paper and work through different scenarios to figure out your loan goals. Make sure to account for utilities or other payments you will need to make each month. Having a good handle on your finances before you get a mortgage will set you up for success as a homeowner.
Be Prepared for Associated Costs
Everyone knows that when you buy a house, a down payment is often part of the equation, but don’t forget about the other costs associated with buying a home. Costs for an appraisal, inspection, and taxes can easily be overlooked, and when all is said and done, closing costs can range between 2-5% of the value of your newly purchased home. Be sure to take these expenses into account and set money aside. When you do get a house, homeowners’ insurance and mortgage insurance are typically rolled into your monthly payment, so these are additional monthly expenses to consider.
Manage your Credit Score and Debt-to-Income Ratio
Two numbers that you will hear again and again the mortgage process are credit score and debt to income (DTI) ratio. When you talk to your Loan Officer to get started in the process they will first ask you how your credit is, and then with your permission check to get the exact number. Different loan programs are available which may be a better fit for you based on your specific number.
Some credit card apps have free weekly credit score updates that will help you monitor your score. Other free apps like NerdWallet make it easy to keep an eye on all your financial information, including your credit score, and even offer suggestions about what to pay off first. Be sure not to open new lines of credit or accumulate new debt before you get a mortgage. This can affect your credit worthiness, so wait to make any big purchases until you have officially purchased your home.
A debt-to-income ratio is the amount of money you spend per month divided by your take home pay. Mortgage companies take your new proposed monthly mortgage payment into account to ensure it won’t be too high a percentage of your take home income.
This ratio helps the lender understand how much you can afford and what a healthy mortgage payment would look like for you. DTI takes all your debt—student loans, auto loan, credit card debt, etc. and compares that to your income. If your DTI is around 36% or lower, that is healthy, but once your DTI is over 45%, your chances of getting approved decrease.
Consider your Down Payment
Another factor to think about in the mortgage process is your down payment. How much money you put down affects the type of home loan that will be best for your situation. Putting 20% down on a home is not required. While most loans require a down payment, many only require 3-10% down, and there are zero-down options available. However, if you put down less than 20%, you may be subject to mortgage insurance. This is tacked on to your monthly mortgage payment, but once you have 20% of your home paid off you can get rid of your PMI on certain loans. While putting more money down can save you interest long term, it is not a requirement, and customers should consider their full financial pictures when choosing how much to put down on a home in Michigan.
What Documents You Need to Come Prepared
Being prepared will help expedite the process and make it easier for everyone involved.
Documentation Checklist:
Social security number
Proof of employment
Proof of income
Tax documents
Place of residence information for the past few years
Credit information
Get Pre-Approved
Before you start house hunting, it’s helpful to understand your budget, explore your options, and know what to expect throughout the homebuying process. Getting prepared early can help you feel more confident and make the path to homeownership a little less overwhelming.
Every homebuyer's situation is different. Whether you're just starting to explore your options, working toward improving your financial picture, or getting ready to make an offer, having the right guidance can make all the difference.
Reach out to me directly, and we can talk through where you are in the process, discuss your goals, and identify the next steps to help you prepare for homeownership. You don't need to have everything figured out before reaching out. Sometimes, the best place to start is simply a conversation.
Subject to credit approval, not all borrowers may qualify. All information is for educational and illustrative purposes only. Not a commitment to lend, and not financial advice. Not affiliated with or endorsed by any government institution. Please contact us for eligibility and quotes.
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*Contact Kalah at KalahS@TreadstoneMortgage.com or (616) 774-9514. Kalah was not compensated for writing this article, and it is free to meet with her.
**As always, reach out to me with any questions about your investment accounts or general financial situation. I do not charge for meetings; I am only paid based on the money I manage. The above article was written by Kalah Stratton/Treadstone Mortgage and are their views, not the views of myself or Clarity Wealth Management.