Start the New Year with a Clear Mortgage Plan
The holidays are a great time to relax and celebrate. But for many military families, they can also put stress on finances. Travel, gifts, and events often lead to higher spending. When January arrives, your bank account may feel the impact.
The good news is that 2026 brings a fresh start. The housing market is becoming more stable, and buyers have more opportunities than in recent years. If you expect a PCS move this spring or summer, now is the right time to prepare for a mortgage.
At the i35 Group, we believe early preparation leads to smoother moves and better outcomes.
1. Focus on Your Credit Score
Your credit score is one of the most important parts of your mortgage application. It helps decide your interest rate. Even a small increase can save you a lot of money over time.
Check your credit reports
Get your free reports from the three major credit bureaus. Look for mistakes or old accounts that should be updated.
Pay down holiday debt
High credit card balances can lower your score. Try to keep balances below 30% of your credit limit.
Avoid new debt
Do not open new credit cards or finance large purchases. New inquiries can lower your score and slow the loan process.
2. Improve Your Debt-to-Income Ratio
Lenders look at how much of your income goes toward monthly debt. This is called your Debt-to-Income (DTI) ratio. VA loans are flexible, but a lower DTI makes your application stronger.
Many lenders prefer a DTI of 43% or less. To improve your number, focus on paying off small monthly debts. This could include personal loans or store payment plans. Fewer payments mean more buying power.
3. Use Your 2026 BAH Wisely
Each year, the Department of Defense updates Basic Allowance for Housing (BAH) rates. In many military areas, 2026 rates reflect current market conditions.
Your BAH is a powerful tool. Since it is tax-free, lenders may count it as higher income when reviewing your loan. This can help you qualify for more than you expect.
Check your new BAH rate and compare it with home prices at your next duty station. This step helps you set a realistic and comfortable budget.
4. Prepare Your Documents Early
Once you find the right home, the mortgage process can move quickly. Having documents ready can prevent delays.
Make sure you have:
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A current Certificate of Eligibility (COE)
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Your last three months of LES statements
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A DD-214 or Reserve points statement, if needed
Being organized now saves time later.
The Bottom Line for 2026
The 2026 housing market offers real opportunities for military families. Interest rates are more stable, and inventory is improving. With the right preparation, homeownership can feel more achievable and less stressful.
Take time this week to review your finances. Make a plan to pay down debt. Talk with a VA-experienced lender early. When the time comes, having a strong plan in place makes your PCS move smoother.
Ready to take the next step?
Whether you’re planning a PCS move or just starting to think about buying, the i35 Group is here to help.
i35 Group at Keller Williams Realty
📱 254.495.5661 | 📩 bill@i35group.com | 🌐 www.i35group.com