3 Essential Financial Tips for Future Homebuyers: Budgeting, Credit & Investing

Prysma Lending Group's latest video features a candid and educational conversation between our Mortgage Loan Originators Jessica Sarmiento and Stefany Pina. Together, they break down the three pillars of financial health that every aspiring homeowner needs to master before applying for a mortgage.
Watch the video to get expert advice on how to structure your budget, why you must protect your credit at all costs, and the critical difference between simply saving money and investing it for growth.

The Power of a Detailed Budget: Know Your Numbers

The conversation begins with the most fundamental step: creating a budget. As Stefany explains, finance is as basic and essential as buying food or sending kids to school. Without knowing exactly what comes in and what goes out, it is impossible to set realistic saving goals for a down payment.
The experts recommend tracking expenses meticulously, whether on a spreadsheet or a simple piece of paper, to identify where money is leaking. By distinguishing between fixed expenses (rent, utilities, food) and discretionary expenses (dining out, entertainment), you can identify the surplus available for savings. As Jessica notes, understanding your "bottom line" is the only way to determine how much extra income you might need to generate to reach your homeownership goals.

Protect Your Credit: The Dangers of Co-Signing

The second tip is perhaps the most urgent: Do not lend your credit to anyone. Stefany describes your credit report as your "letter of introduction" or "résumé" to a bank. It is a permanent part of your financial identity.
When you co-sign for a friend or family member, you lose control over the payment history but retain 100% of the liability. Life events like divorce, accidents, or job loss can prevent even well-meaning friends from paying, which can devastate your credit score. Furthermore, Jessica points out that co-signed debts (like a car loan) count against your Debt-to-Income (DTI) ratio, potentially reducing your purchasing power or disqualifying you from a mortgage entirely.

Saving vs. Investing: Making Your Money Work

The final tip focuses on the difference between saving and investing. Keeping cash "under the mattress" is risky and leads to a loss of value due to inflation. The experts discuss how to make your savings grow through:

Setting Realistic Goals

Using the analogy of weight loss, the team emphasizes setting tangible, realistic financial goals. Just as you can't lose 50 pounds in a month, you cannot expect to become a millionaire overnight. Avoid "get rich quick" schemes and work with licensed professionals to build a sustainable plan.