Benefits Homeownership has many advantages, both financial and personal. In summary, you can consider the following benefits and differences between homeownership and renting: Tax savings: Mortgage interest and property taxes can be deducted from your income tax.   Higher networth: The networth of a homepowner is X times bigger than the renter's networth   Stable housing expense: Your monthly mortgage payments can remain the same for the life of your mortgage, depending on the type of loan you choose.   Equity: You may build equity in your home over the life of your loan, which allows you to plan for upgrading your home, child's education, retirement and other future goals.   Freedom to decorate: When owning a home you do not depend on the restrictions imposed by a lanlord to decorate or improve your place.   Academic achievement: The children of homeowners do better in school and are more successful later in life. Get ready! Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. Look at your current situation wiill give you a basic idea on how much house you can afford, start by determining:   Wether you are buying by yourself or with a co-applicant The total annual income of the applicants The monthly expenses and debt of the applicants The savings and/or 401K accounts of the applicants How much money you have available for down payment and deposit How the credit reports look like: any late payments or collections? Have all the required documentation handy (paystubs, bank balances, tax returns, W2s) How many rooms you need How close you want to be from work Location and type of neighborhood Which school districts you are interested in Any special requirements (space for pets, storage, etc.) The homeowner FAQs below will answer some remaining questions in regards to homeownership. Once you fully understand your current situation and the type of home that you need, then you will be ready to get started with the buying process. FAQs Do I need great credit to become a homeowner? Having less-than-perfect credit is not an obstacle for you to buy a home. There are programs on the market that do not require perfect credit, shop around and find the program that gives you flexibility and a mortgage that you can afford. Also remember, you can improve your credit over time or fix any miss-reportings that you may have before you qualify for a loan.   I'm not a U.S. citizen, can I buy a home? If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S.   Is it a good idea buying a house out of my working area at lower prices? Buying a big house at lower prices sounds very attractive but also consider that you will have to pay the price for commuting: Less time with your family More stress while driving Gas How about my perfect home? Set realistic priorities for your new home. Your first home may not include everything on your wish list, so it is important that you and your family have agreed on your priorities. Remember, your first house will be a "starter home", and you will most likely have the opportunity to "move up" to a bigger or better house.   How can I determine how much home I can afford? Definitely a mortgage calculator can help you getting an estimate on the loan amount that you can pay so you can start with the process. Down the road, a loan officer will determine exactly how much you qualify for.   Do I need to put 20% down? There are many types of mortgage products and programs that allow low down payments. With some low or no down payment loans you will have to pay PMI or a higher interest rate higher. Once again shop around and find the best option.   What is PMI? PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.   Should I Pay More or Less "Up-Front"? The size of the down payment, money paid at closing, can affect your mortgage in a number of ways. Higher up-front payments result in : Lower monthly payments Lower or no private mortgage insurance (PMI) costs (if applicable) Lower interest payments On the other hand, lower up-front costs mean that your cash requirements at closing are much less, although monthly payments may be somewhat higher.   I'm ready, what's the next step? Now that you are ready you can start the buying process.