Step 1—Know when you’re ready
A home is likely the largest purchase you’ll ever make, so it’s important that you’re well prepared.
Decide whether to rent or buy
Start by determining if either buying or renting makes the most sense for you right now. There are costs and benefits associated with each, so make sure you have all the facts before deciding.
Determine what you can afford
If you decide you want to buy a home, it’s time for a thorough review of your finances and credit history to see what you can afford. You can use our mortgage affordability calculator to estimate how a mortgage could fit into your financial situation.
Build and manage your credit
Your credit plays a crucial role in the mortgage lending process. Brush up on the basics and be sure you’re making the most of your credit as you take the next steps toward homeownership.
Put your rent payments to work
If you consistently pay your rent each month, you’re likely to keep up with mortgage payments too. A solid record of rent payments can now help you qualify for a mortgage, even if you have a limited credit history.