Money Ready: Budgeting & Financial Literacy
Six short modules that mirror the financial-literacy curriculum taught inside Minnesota's Home Stretch homebuyer workshops. Work through it before — or alongside — your required 8-hour class to walk in already approval-ready.
Quick 50 / 30 / 20 check
Needs target (50%)
$2,900
Wants target (30%)
$1,740
Save target (20%)
$1,160
Current DTI
35%
You have $850/mo of headroom inside the "needs" bucket — a healthy starting point for a mortgage payment.
The 6-module program
About 4 hours total. Modules build on each other — start at 01.
- 45 min01
Build Your Real Budget
Track every dollar for 30 days using the 50/30/20 framework, adjusted for Twin Cities cost-of-living.
- ✓Categorize fixed, variable, and goal spending
- ✓Identify $200–$600/mo of recoverable cash
- ✓Set a written savings rate target
- 40 min02
Understand & Improve Credit
How FICO scores are calculated, what mortgage lenders actually look at, and the fastest legitimate ways to move 20–60 points.
- ✓Pull all 3 bureau reports for free
- ✓Dispute errors using the FCRA template
- ✓Optimize utilization below 30% / 10%
- 35 min03
Pay Down Debt Strategically
Avalanche vs. snowball, what counts toward your debt-to-income (DTI) ratio, and which balances to wipe before applying for a mortgage.
- ✓Calculate your current DTI
- ✓Pick a 6-month payoff plan
- ✓Avoid new credit lines pre-application
- 40 min04
Save for Down Payment & Reserves
Where to park down-payment savings, how lenders 'season' funds, and how to stack DPA grants on top of your own savings.
- ✓Open a dedicated HYSA
- ✓Document 2 months of seasoning
- ✓Map savings into the DPA stack
- 50 min05
Mortgage Basics & Pre-Approval
Loan types (Conventional, FHA, VA, USDA), PMI, points, rate locks, and the documents you need for pre-approval.
- ✓Compare 3 loan estimates apples-to-apples
- ✓Know your max payment, not just max price
- ✓Lock with a 60-day window
- 30 min06
After You Close: Owning the Home
Escrow, property taxes, insurance, maintenance reserves, and the homestead credit. Avoid the year-two budget crunch.
- ✓Reserve 1–2% of price annually for maintenance
- ✓File MN homestead within 30 days
- ✓Reassess insurance every 12 months
Free 1-on-1 coaching partners
When you want a real human to look at your numbers, these HUD-approved Minnesota nonprofits provide free budgeting and credit coaching alongside Home Stretch.