Budgeting Tools for Home Buyers

Step 4 of getting mortgage-ready is knowing the monthly payment you can live with, not just the price a lender will approve. These two apps help you track spending, pay down debt and save for your down payment and closing costs.

Featured: 60-day free trial for our readers

Solvit: budget and debt payoff in one place

Solvit connects to your bank accounts, sorts your spending into a budget, and compares debt payoff methods side by side, including avalanche, snowball and cash-flow index, so you can see which debts to pay first before you apply for a mortgage. It also tracks savings goals like your down payment.

  • Automatic bank syncing and spending categories
  • Debt payoff calculator with several strategies
  • Goal tracking for your down payment and closing costs
  • Solvit Air is $15 a month after the trial; cancel anytime
Promo code:THERATEUPDATEEnter it on the payment page when you add your card. It adds 30 days to the standard 30-day free trial, for 60 days free. You won’t be charged until the trial ends, and you can cancel before then in Settings → Billing.

Start My 60-Day Free Trial →

Disclosure: Dan Frio has a business relationship with the Solvit team. Trial length and pricing are set by Solvit and may change.

Also good: YNAB (You Need A Budget)

YNAB uses a give-every-dollar-a-job method: you plan each dollar before you spend it, which works well when you’re building a down payment on a set timeline. It offers a free trial on its own site.

Try YNAB →

What to budget for before you buy

  • The full monthly payment: principal and interest plus property taxes, homeowners insurance, mortgage insurance and any HOA dues.
  • Cash to close: your down payment plus closing costs, which commonly run a few percent of the loan amount.
  • A cushion: reserves for repairs and the first few months in the home.
  • Your debts: lenders compare your monthly debt payments to your income, so paying down a card or a car loan can help you qualify.

Read the full guide: How to budget for your first home.

Next: Step 5, find out if you’re ready to buy →

Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781 | Equal Housing Lender | 524 Main St, Hazard, KY 41701. Solvit and YNAB are not affiliated with PBT Bancorp, and using them is not required to apply for a mortgage.