From Renter to Homeowner
Step 1: Get your financial house in order.
Check your credit score and pay your bills on time. Maintain a balance on credit cards between 5-30% of the available credit limit. Obtain stable employment.
Step 2: Start a savings plan.
Having some of your own funds for down payment and closing costs shows lenders and sellers you have skin in the game. They are more likely to take your offer more seriously and it will save you in higher rates and fees.
Step 3: Educate yourself.
Learn what you can afford, get informed about loan options available to you, and find a lender you can trust. Check in with a lender to learn about current loan progress and any down payment assistance programs offered in your area.
Step 4: Get prequalified BEFORE you fall in love with a house.
Financing a large purchase like a home is likely the largest investment you will make. It is important that you are prepared to handle all of the costs of home ownership. This includes utilities, maintenance, property taxes, homeowners insurance and fees.
Ready to get started?
Check out our free tools to get familiar with the mortgage process.