Peoples Bank & Trust
Updated Mon October 13, 2025
Published Under: Home Loans
Whether it’s your first home or your forever home, buying a house is a major life decision, and preparation makes all the difference. If you’re planning to buy in 2026, the best time to start is now.
At Peoples Bank & Trust, we’re here to help you every step of the way. This checklist walks you through how to get financially ready, understand your loan options, and set realistic goals for a smooth homebuying experience.
Step 1: Clarify Your Goals
Start by identifying what you want from your next home. Are you upsizing, downsizing, relocating, or buying an investment property? Knowing your “why” helps you stay focused and make smarter choices about location, budget, and timing.
Step 2: Review Your Financial Health
A strong financial foundation sets you up for success.
Check Your Credit Score
Your credit score affects your mortgage options and interest rate. Most lenders look for a score of 620 or higher, but a score over 700 can help you secure a better rate.
PB&T Tip: Request a free credit report from AnnualCreditReport.com and fix any errors before applying.
Assess Your Debt-to-Income Ratio
Lenders prefer a debt-to-income (DTI) ratio below 36%. Add up your monthly debt payments and divide them by your gross monthly income to find your percentage.
Strengthen Your Savings
You’ll need funds for:
- Down payment: Typically 3–20%
- Closing costs: 2–5% of the purchase price
- Moving expenses
- Emergency fund: 3–6 months of living costs
PB&T Tip: Open a dedicated savings account just for your future home fund. It helps you track progress and avoid temptation.
Step 3: Set a Realistic Budget
Figure out how much house you can comfortably afford. Use an online calculator or meet with a Peoples Bank & Trust loan officer to estimate payments.
Include:
- Mortgage principal and interest
- Property taxes
- Homeowners insurance
- HOA fees (if applicable)
- Utilities and maintenance
Goal: Keep housing costs below 28% of your gross monthly income.
Step 4: Explore Mortgage Options
Not all loans are the same. Here are a few to consider:
- Conventional Loans – Great for buyers with strong credit and steady income.
- FHA Loans – Designed for buyers with lower credit or smaller down payments.
- USDA Loans – Available in qualifying rural areas, often with no down payment.
- VA Loans – For eligible veterans and active-duty military members.
PB&T Advantage: Our mortgage specialists will help you compare programs and find the right fit for your needs.
Contact a PB&T Mortgage Lender
Step 5: Get Pre-Approved
A mortgage pre-approval shows sellers you’re serious and gives you a clear price range before you start shopping.
To get pre-approved, you’ll need:
- Recent pay stubs or proof of income
- Tax returns
- Bank statements
- Valid ID
PB&T Tip: Schedule a pre-approval meeting with one of our local lenders. We’ll walk you through what to expect and help you prepare early.
Step 6: Define Your Home Criteria
Think about what matters most in your next home.
Make a Wish List
Consider:
- Neighborhood and commute
- School district
- Number of bedrooms and bathrooms
- Yard size
- Layout or home style
Research Neighborhoods
Visit potential areas, check local amenities, and explore property values. Look into crime rates, resale potential, and community features.
Step 7: Learn About Assistance Programs
Even experienced buyers can qualify for programs that make homeownership easier:
- Down payment or closing cost assistance (state or local grants)
- Tax credits for first-time homebuyers
- Reduced mortgage insurance for qualifying loans
PB&T Tip: We’ll help you review available programs so you don’t miss out on savings.
Step 8: Build Your Homebuying Team
A strong team makes for a smooth process:
- Real estate agent: Finds homes, negotiates, and handles contracts.
- Loan officer: Guides financing and pre-approval.
- Home inspector: Ensures your investment is sound.
- Title company: Handles closing and confirms ownership.
PB&T Advantage: We work closely with trusted local agents and professionals who know your community.
Contact a PB&T Home Loan Specialist
Step 9: Create a Homebuying Timeline
If you want to move in by summer 2026, here’s a sample plan:
- Fall 2025: Review finances, boost credit, start saving
- Winter 2025–26: Get pre-approved and explore neighborhoods
- Spring 2026: Begin house hunting
- Summer 2026: Make an offer, close, and move in
Step 10: Stay Flexible and Informed
Housing markets change quickly. Interest rates, home inventory, and demand can shift, but preparation helps you adapt.
PB&T Tip: Follow Peoples Bank & Trust on social media or sign up for our newsletter to get updates on mortgage rates, programs, and financial tips.
How Peoples Bank & Trust Can Help
At PB&T, we’re your partner in the homebuying journey. With us, you get:
- Personalized mortgage guidance to fit your budget and goals
- Local expertise from lenders who understand your community
- Support for assistance programs and cost-saving strategies
- Simple pre-approval process, online or in person
- Ongoing support, from your first question to your closing day
Ready to Start?
Buying a home in 2026 starts today. With the right plan and the right partner, you can turn your dream into reality. Visit pbtc.net or stop by your local branch to speak with a mortgage specialist and get help today.
Peoples Bank & Trust Co.
Member FDIC, Equal Housing Lender
NMLS #407724
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