Homebuyer Resources

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.

Step 2–Save for homeownership

Saving is essential to pay for required homebuying costs. In addition to a down payment, there are closing costs, other fees, and unexpected expenses to keep in mind.

Prepare for upfront and ongoing costs

It’s important to be aware of the costs associated with buying — and owning — a home. From your down payment and mortgage loan closing costs to homeowners’ insurance and ongoing maintenance, don’t let these expenses catch you off guard.

Budget for closing costs

Closing costs typically range from 2% to 5% of the value of your mortgage. Use the closing costs calculator to see ranges of common closing fees to help you budget.

Understand your debt-to-income ratio

Lenders consider your debt-to-income (DTI) ratio when determining what mortgage loans are available to you. If the amount you owe in debt is high compared to your overall income, you may not qualify for the most preferable loan terms.

Step 3—Work with a mortgage lender

There are many different mortgage lenders. When you find the right one for you, they’ll evaluate your finances and explain your mortgage options.

Choose a lender

Different lenders may offer different mortgage products, require different fees, and use different processes. Use our checklist to help select a lender that meets your specific needs.

Understand loan basics

Get an overview of mortgage loan definitions and processes. Find out how mortgages work and what factors may impact your loan terms.

Types of mortgage loans

Mortgage loans aren’t one-size-fits-all. Before deciding which one works for you, get to know the different kinds available.

Discover affordable mortgage options

Depending on the home and your circumstances, special loans or programs may be available to make your mortgage more affordable.

Step 4—Shop for a home

Before you begin shopping for a home, it’s important to know what you’re looking for and what’s within your budget. Defining what your top priorities are can make your home search more enjoyable and help you close the sale on a home you’ll love.

Find the right agent

A real estate agent can help you find and view homes. Consider multiple agents before choosing one: Ask friends for recommendations, read online reviews, and meet with the agents directly. Our checklist has ideas for what questions to ask.

Decide what you need and want in a home

Many factors and features can influence a home’s purchase price and the ongoing costs of homeownership. Learn about the major considerations beforehand.

Step 5—Make an offer on a home

When you decide to purchase a particular home, you’ll submit an offer to the seller. If they accept your offer, you’ll both sign a sales contract.

Provide documentation to your lender

At this point your lender will request additional documentation. Our documentation checklist can help you make sure you provide them with everything they will need to finish up the loan process.

Prepare for the home inspection

When the seller accepts your offer, you’ll both sign a sales contract or purchase agreement. At that point, you may want to set up a home inspection which helps you avoid last-minute surprises. Our checklist can help you understand what to expect and questions to ask during the inspection.

Step 6—Get ready to close your loan

You’ll work with your mortgage lender to finish up remaining paperwork, finalize your loan, and transfer ownership. And when it’s done, you own your home.

What to expect when closing

You’ll set a closing date and location with your lender, real estate agent, and closing agent. They’ll help you finish remaining paperwork, finalize the loan, and make sure that all funds for closing get transferred according to the agreed upon terms.

Understanding the title process

There are a few things to know about transferring the legal ownership of your home from the seller to you during the closing process.

Closing checklist

There will be a lot going on and many papers to sign, but you’ll have your real estate agent for guidance along the way. This checklist can also help make sure you stay on track throughout the closing process.

Step 7—Welcome to homeownership

Congratulations, homeowner! Although this is the last step, it’s just the beginning of your journey as a homeowner.

Learn about homeownership

You’ll have a lot of new responsibilities, like paying your mortgage on time and maintaining your home — plus ongoing expenses, like property taxes and insurance.

Depending on the type of home and neighborhood, there could be ongoing homeowners association (HOA) or condo fees. Most standard homeowners insurance policies don’t cover all possible hazards or natural disasters, so you may want to supplement with additional flood or earthquake insurance. And unlike most rental situations, you’ll now be responsible for all repairs and maintenance, as well as any home improvements.

The best part is that you can now truly make the home your own.

And remember, Fannie Mae is your go-to resource for every step of your homeownership journey.