The Homebuying Decision Scorecard

Section 01 · Real Number

Do you know what you should actually borrow?

Not the ceiling the bank approved. The payment your life can sustain. The number that leaves room for savings, emergencies, and what comes next.

1

I know my approval amount. That is the number I am working with.

2

I have a rough payment in mind, but it is mostly based on listings I have been looking at online.

3

I know a target payment, but I have not tested it against my savings rate, existing debt, or what my monthly life actually costs.

4

I know my target payment and have compared it to my actual monthly expenses and lifestyle.

5

I know my sustainable payment, my stretch payment, and the number I will not cross -- and I know why.

Section 02 · Cash After Closing

Do you know what you will have left?

Down payment is one line. Closing costs, prepaid expenses, and reserves are the rest. The full picture often reaches 6 to 10 percent of purchase price before you own a single square foot.

1

I have thought about down payment. I have not thought much about what I will have left after everything else is paid.

2

I know my down payment number. I have a rough sense of closing costs but have not run a full cash-to-close figure.

3

I know my estimated total cash-to-close, but I have not calculated what my savings balance will look like the day after I close.

4

I know my full cash-to-close number and have confirmed I will have at least two months of mortgage payments remaining as a cushion after closing.

5

I know my exact post-closing position: down payment, closing costs, prepaids, and reserves are all accounted for, and the cushion I have left reflects a conscious decision, not what happened to be left over.

Section 03 · Primary Constraint

Do you know the one variable controlling your options?

Every buyer has one. For some it is cash. For others it is credit. For others it is income structure under an approval that looks clean on paper. Find it first and every other decision gets clearer. Miss it and you spend months optimizing the wrong things.

1

I have not thought about it this way. I am working with what I was told I qualify for.

2

I have a sense that something is limiting me, probably savings, credit, or monthly cash flow, but I have not identified it clearly.

3

I think I know what my primary constraint is, but I have not had a conversation that confirmed it or explained the tradeoff it creates.

4

I know what my primary constraint is and I understand how it limits my options and shapes the structure of any loan I should consider.

5

I have named my primary constraint, understand the specific tradeoff it creates, and have built my plan around it rather than around the approval ceiling it still produced.

Section 04 · Five-Year Scenario

Have you run the picture that actually matters?

If you cannot hold the home for at least three to five years, the transaction costs alone can make buying the losing financial move, regardless of what rates do. Equity is built by holding. Holding requires a payment you can sustain.

1

I have not thought about a five-year picture. I am focused on getting into a home.

2

I generally plan to stay for a while, but I have not thought about where my income, family, or career will actually be in five years.

3

I have thought about my five-year picture in general terms, but I have not connected it to the specific loan structure or payment I am considering.

4

I have a clear picture of where I expect to be in five years, same market, same income level, same family situation, and it supports holding this home through that window.

5

I have run the five-year scenario: projected equity, income trajectory, family plans, and break-even against continued renting. Buying now wins that scenario. I know why.

Section 05 · Refinance Trigger

Do you have a refinance rule, or just a hope?

Most buyers plan to refinance when rates drop. That is not a trigger. A refinance trigger is the specific rate at which refinancing makes financial sense for your exact loan, calculated from your balance, estimated closing costs, and how long you plan to stay. When you know it, you stop watching headlines for permission.

1

I am planning to refinance when rates drop. I do not have a specific number in mind.

2

I have a rough idea, something like "if rates drop a full percent," but it is not based on my specific loan or closing cost math.

3

I understand how break-even works on a refinance, but I have not run the numbers on my actual balance, costs, and timeline.

4

I have talked through refinance strategy with a lender and have a general sense of what rate would make it worth doing for my situation.

5

I know my strike rate: the exact number at which refinancing makes financial sense based on my projected balance, estimated closing costs, and break-even timeline. I watch for the trigger, not the headlines.

The HomebuyingDecision Scorecard

Do you know what you should actually borrow?

Do you know what you will have left?

Do you know the one variable controlling your options?

Have you run the picture that actually matters?

Do you have a refinance rule, or just a hope?

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The Homebuying
Decision Scorecard