3 Ways to Prepare for Homeownership While Renting

You may not be ready to buy your first home, but that doesnt mean you cant prepare now. Here are three actions you can do while renting that will put you in a better position when youre ready to buy.

Test the Budget

While you cant predict all homeownership costs to the last penny, you can come up with a rough estimate of how owning a home will affect your budget. A REALTOR® can help you figure out how much you can afford, the potential mortgage payment youd make, your local property taxes, and repair costs you might want to consider as a homeowner.

Check your Credit

Before you apply for a loan, request a free credit report to find out what a lender would see. If your report has errors, you can correct them before they affect your ability to qualify for a mortgage loan. And you might be able to take steps to improve your credit before purchasing a property.

Create a Wish List

Theres probably not a home that will offer every single amenity you desire, but you should have a general idea of what youre looking for. So while a home with fewer than two bathrooms may be non-negotiable, perhaps youd see the potential in one with a smaller kitchen or a not-so-appealing exterior paint job.

Its never too early to talk to a REALTOR® when you know youre going to buy a home. A REALTOR® can answer your questions about the homebuying process and help you avoid surprises along the way.

TAR Staff