Renting Now? Prepare for Homeownership

If home ownership is a goal of yours, it’s never too early to start preparing. There are three simple things you can do now to make sure you’re ready for the homebuying experience later.

  1. Build your credit. The higher your credit score, the more options you’ll have when it comes to financing. You’ll need a score of at least 580 to qualify for an FHA loan, while a conventional loan will require a score of at least 620. It’s a good idea to request a credit report in case there are any errors.
  2. Create a wish list. It’s easy to get caught up in the excitement of homebuying, making it an excellent idea to create a wish list to guide your search. Narrow down where you want to live by driving through potential neighborhoods. Decide if a large yard is a dealbreaker, or if you can’t live without hardwood floors. 
  3. Run the numbers. Before you shop know exactly what amount of house you can afford. There will always be unforeseen costs when it comes to homeownership, but figuring out how much you can pay each month for your mortgage, bills, and utilities will keep you from falling in love with houses above your price range.

If you dream of owning a home one day, the time to start preparing is now. Getting your ducks in a row and your sights set on the finish line will make the homebuying process a much more enjoyable experience.

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