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5 min read ·Should I Buy?

Are You Financially Ready?

Key Takeaways

✓Know your income, savings, and debt before starting
✓Emergency fund of 3-6 months expenses is recommended
✓Credit score matters, but it's not the only factor

Taking Stock

Before you start house hunting, take an honest look at your finances. This means understanding your monthly income, current savings, existing debts, and credit score. Being honest with yourself now saves heartache later.

Piggy bank illustration showing savings progress toward homeownership

The Four Numbers That Matter

Lenders focus on four key numbers: your gross monthly income, your total monthly debt payments, your credit score, and your available savings for down payment and closing costs. You don't need perfect numbers—you need to know your numbers so you can improve them or find programs that work for your situation.

The 4 numbers lenders look at: income, debts, credit score, and savings

Building Your Safety Net

Homeownership comes with surprises—a broken furnace, a leaky roof, property taxes due. Financial experts recommend having 3-6 months of expenses saved before buying, separate from your down payment. This isn't about being rich; it's about being prepared for the realities of owning a home.

Umbrella protecting a house representing emergency fund safety net

🏠 Kentucky Income Context

The median household income in Kentucky is around $55,000. Many Kentucky assistance programs are designed with this in mind, offering help to those earning up to 80-100% of area median income. If you're earning around this range, you likely qualify for down payment assistance through KHC or local programs.

✅ Your Next Step

Calculate your debt-to-income ratio using our calculator, then check if you qualify for Kentucky assistance programs.

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