Renting with the goal of buying

If you are a renter hoping to make the leap into homeownership, make sure you are fully prepared for the financial commitments that come with owning a home.

If one day you aspire to be a homeowner, keep your long-term goals in mind. The transition from renting to buying is a big step which requires patience and lots of planning.

  • stack of dollar bills

    Budget for your total expenses

    Determine how much you’ll need to save. A monthly mortgage payment isn’t the only cost you’ll be responsible for when you purchase a home. Homeownership comes with both upfront and recurring costs.

    • Down payments typically range from 3-20% of the purchase price.

    • Closing costs typically range from 2-5% of the purchase price.

    • Moving expenses the total price tag can run from hundreds to thousands of dollars.

    • Homeowners Insurance & Property Taxes recurring costs that vary widely from state-to-state and home-to-home.

  • checklist of items and a credit card

    Establish and maintain good credit

    Your credit is one of the most important factors lenders use when deciding if you qualify for a mortgage loan.

    • Start to build a credit history:
      • Open a free or low-cost checking or savings account.
      • Apply for a credit card and use it responsibly.
    • Make all your payments on time and in full.
    • Monitor your credit by checking your credit report annually.
  • piggy bank with a coin

    Make a spending and savings plan

    Set your goals and find a system where you can hold yourself accountable.

    • Determine how much you need to save monthly to reach your goal.
    • Carefully track your income and all expenses.
    • Trim non-essentials.
    • Get committed and start saving today!

    Owning a home can provide you with the independence you've always wanted, but it's important to remember that homeownership comes with new responsibilities. When you think you are ready, talk to a housing counselor or industry professional to discuss your options.