Purchasing a home is one of the most rewarding decisions you can make. Owning a home gives you and your family a sense of stability and security – and the independence and pride that come with that. Homes typically increase in value, build equity and provide a nest egg for the future. Plus, owning a home comes with tax benefits.

Homeownership is a long-term financial commitment. The first step you should take when considering buying a home is to review your finances to determine what type of mortgage you can afford. A lender will look at your financial resources to help you begin the homebuying process. Good credit and a larger down payment will get you a better deal in the long run.

Before you look for a house, here are some steps you can take to make sure you’re financially ready to be a homeowner:

  • Do an analysis of your current financial situation.

  • Develop a household budget.

  • Get a copy of your credit report to make sure there are no problems.

  • Study how a home purchase will affect your budget. Don’t just look at the mortgage payments – make sure you are also factoring in repairs and maintenance.

  • Determine the amount of cash you have available for the down payment and closing costs – and don’t forget the moving costs!

Nonprofit housing counseling agencies approved by HUD can help you understand the homebuying process and assist you with anything you don’t understand. Some even offer online education programs. Find a housing counseling agency here.

Interested in buying a home? Visit KissYourLandlordGoodbye.com to learn more and get started.