As the year winds down, many people are focused on the holidays, but if buying a home is in your 2026 plans, now is a smart time to look ahead. Taking a few financial steps before December 31 can set you up for success and make the homebuying process smoother when you’re ready to take that next step.

Here are five impactful financial moves to consider before year-end:

1. Check and Monitor Your Credit Score

Your credit score plays a major role in qualifying for a mortgage and determining what interest rate you'll receive. If you haven’t checked it lately, take a few minutes to do so before the end of the year. Many credit card companies or apps like Credit Karma offer free credit score access.

Example: Let’s say you’re sitting at a 670 score now. By paying down some revolving credit and avoiding new debt over the next few months, you could potentially raise that score into the 700s, putting you in a better range for more competitive rates when it’s time to apply.

Also, keep an eye out for errors. Something as simple as a medical bill that was accidentally sent to collections could be lowering your score without you realizing it.

2. Pay Down High-Interest Debt

Mortgage lenders look at your debt-to-income ratio (DTI) to assess how much of your monthly income is going toward existing debt. Lower DTI = better borrowing power.

Example: If you’re making $5,000 a month and $1,500 is going toward debt (car loans, credit cards, student loans), your DTI is 30%. Paying off just one credit card with a $150 monthly payment can significantly improve that number, and give you more room in your budget for a future mortgage.

Now’s a good time to focus on high-interest balances first, like credit cards, personal loans, or buy-now-pay-later balances that might be piling up around the holidays.

3. Maximize Retirement and Savings Contributions

Even if you’re planning to use your savings for a down payment, contributing to retirement accounts like a 401(k) or IRA can still work in your favor. Lenders may consider retirement funds as part of your overall financial strength and reserves.

Example: If you receive a year-end bonus or tax refund, consider splitting it, half into your retirement, half into a dedicated down payment savings account. Having a separate savings account just for your home purchase also helps you track progress and resist the temptation to dip into it.

Bonus tip: Some buyers can use retirement funds (like a 401k loan or first-time homebuyer IRA withdrawal) toward a down payment. Just make sure you talk with a lender or financial advisor before making any moves.

4. Review (or Adjust) Your Withholdings and Tax Strategy

Year-end is tax strategy season. Reviewing your withholdings and deductions now can help you manage your cash flow heading into 2026.

Example: Maybe you’re expecting a large refund because of excess withholdings this year. That money could be spread out across your paychecks next year, giving you more flexibility to save for a home month by month instead of waiting for a lump sum. Or perhaps you can make a final contribution to an HSA or charitable donation before the end of the year to lower your taxable income.

Talking to a tax advisor can help you make smart choices now that align with your homeownership goals down the road.

5. Talk to a Local Lender (Yes, Now!)

It might seem early to start the mortgage conversation, but speaking to a lender well in advance can actually save you time, money, and surprises later.

At Consumers National Bank, we’re here to guide you through the process, even if you're just in the planning phase.

Example: Let’s say you're targeting a $250,000 home purchase in spring 2026. By connecting with our mortgage team now, we can help you estimate what kind of down payment you’ll need, how much a monthly payment you can comfortably afford, and what loan options might be available based on your credit and income.

And if you hit any roadblocks, credit score concerns, inconsistent income, or student loans, we’ll work with you to build a roadmap to overcome them.

Set Yourself Up for a Strong Start in 2026

Buying a home takes more than just house hunting. It starts with solid financial habits, and the sooner you begin, the better prepared you’ll be. Think of this month as the pre-season warm-up for your homeownership journey.

Let the mortgage experts at Consumers National Bank help you build a plan, review your options, and start strong. Whether you're buying in six months or sixteen, we’re here when you’re ready!