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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.

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    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.

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    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.
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    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.

Related Topic

Tools and Resources

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Calculator: Rent vs. Buy

Understand the financial differences between renting and owning a home.