Go From Renter to Buyer in 12 Months
You just signed your apartment lease yet again. You’ve been renting for a while but still dreaming of having your own home. Is buying a home possible? Can you go from renter to buyer in 12 months? The answer is yes and it might not be as hard as you think.
Months 12 to 9: Start Saving
The biggest obstacle in home ownership for first-time buyers is coming up with the down payment. The best way to do that if you’re buying your first home is to actually save. You’ll have to figure out exactly how much per month, or per week you can afford to save, but an example could be saving $100 a week for the remainder of the year. At the end of your lease, you’ll have around 3% to put down on a $170,000 home.
The easiest way to save? Set it and forget it. Automate your deposits to ensure you don’t get too far down the road and realize you forgot to start saving!
Month 8: Check your credit score.
Your credit score is going to be a factor into whether you get approved for a home loan. Make sure to check your score and ensure it’s in good shape before applying for a loan later this year. You can get a free credit report from Credit Karma, which includes your credit score and details about anything you may need to follow up on or fix.
Month 6: Find out what you can afford.
It’s time to look at some more numbers, but this time to figure out what price range you can afford. Using an affordability calculator like NerdWallet’s helps you understand how much home you can afford based on your financial circumstances. From here, you’ll have a better understanding of what you can buy. And if need be, you can adjust your monthly/weekly automated deposits with plenty of time before you close.
Month 4: Get pre-approved for a mortgage.
Getting pre-approved for a mortgage provides you confidence as a buyer and allows your home purchase offer to be more competitive. If you and another buyer submit the same offer on a home, the seller may be more likely to go with the pre-approved buyer. It shows the seller you’re serious and approved!
You can get pre-approved by our partner Quicken Loans, and get a $750 lender credit if you save with BoostUp and close your mortgage with Quicken Loans.
Month 3: Find a real estate agent.
Now it’s the fun time, let’s start looking at some houses. An agent can help you view houses, make an offer and provide guidance on your local real estate market. BoostUp can connect you with three real estate agents in your area. As an added bonus, you can get up to $1,500 as a Boost from us if you buy with one of the agents we refer.
Buy your house.
Start packing up your stuff because you’re moving into your very own home! Congratulations, we knew you could do it!