If you’re considering trading your rent check for a mortgage payment, it’s never too soon to start preparing. Even if you won’t be ready to buy a home for six months or even a year, there are a few steps you can take now to make the process easier. 

And even if you’ve purchased a home in the past, some of these tips may be great reminders if you’re looking to sell your current home and buy a new one. 

Check your credit and credit score 

• You can receive a free credit report from the three credit reporting bureaus at annualcreditreport.com. Make sure to check the reports thoroughly for accuracy.  

• A higher credit score will qualify you for lower interest rates, which may reduce your mortgage payment.  

• Correcting any credit report errors and/or improving your credit score takes time, so make this important step your first one. 

• Experian, one of the three credit reporting bureaus, provides several helpful tips for improving your credit score. Check out their article on how to improve your credit score to learn more!  

Start saving now  

• You’ll need cash for a down payment, realtor fees, closing fees, home inspections and other expenses. Open a savings account and begin putting away as much money as you can. 

• Consider getting a second job, having a garage sale or other ways to earn extra income to build your savings more quickly. 

• Gaining more control over your spending can help you stick to your savings goals. Budgeting apps can help you understand your current spending and adjust as needed. On their website, Forbes provides a rundown of some of the most popular budgeting apps and some quick budgeting tips. 

Consult a lender 

• A mortgage lender will advise you on how much you are qualified to spend on a home. Additionally, lenders can advise you about down payment assistance programs you may qualify for.  

• Fannie Mae provides excellent resources for finding the right mortgage lender for you as well as questions to ask during your selection process. 

Decide how much you want to spend 

• While a lender advises you on how much you can borrow, it’s up to you to create a housing budget that you’re comfortable with. Be sure you’re not spending so much on a mortgage that you end up “house poor” and unable to afford other enjoyable life experiences.  

• Citibank provides some great tools for helping you stay on track during your home purchase. Their website includes a home affordability calculator, loan amount calculator, mortgage payment calculator and more! 

Find a real estate agent 

• If you don’t personally know a real estate agent, ask family and friends for recommendations. It’s important to feel comfortable with and trust the person you’ll work closely with to buy your home, so meet a few agents before deciding who you’d like to work with. 

• Realtor.com provides seven tips you need to keep in mind when looking for a great real estate agent. 

Research neighborhoods and visit open houses  

• Take a drive to look for towns or neighborhoods you’d like to live in and tour open houses. You can also check out homes for sale in your targeted area on real estate company websites. 

Research homeowners insurance  

• Of course, you’ll need to insure the biggest purchase of your life. Contact an Indiana Farm Bureau Insurance agent for homeowners insurance rates and for advice on insuring your new home. You can also visit our homeowners page for additional information or get a quote today. 

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