Stage 1 of 6
Am I ready?
Credit, income, savings and debts: what lenders look at, what you can afford and whether to rent or buy.
Start with lesson 17 lessons, about 15 minutes in all. Last reviewed October 2026.
Lessons
- How much house can you afford?Your debt-to-income ratio compares monthly debts with income, and each loan type sets its own line. Your own budget should come first.
- Where your credit standsYour credit score sets which loans fit and what they cost. VA and USDA set no minimum score, and small changes can move you into better pricing.
- A 90-day credit planRaising your credit score before you apply takes simple, free steps: pay on time, pay down cards, avoid new credit and correct any errors.
- How much you need savedSaving for a home means cash for three things: the down payment, closing costs and a cushion. VA and USDA loans need no down payment at all.
- Finding the money for a homeMoney for a home can come from everyday extras, a savings account that earns interest, gifts and assistance. VA and USDA loans need no down payment.
- Rent or buy?Rent or buy comes down to time. Buying tends to pay off once you stay long enough for your equity to exceed the costs of buying, owning and selling.
- Are you a first-time buyer?A first-time buyer usually means no home owned in the past 3 years. It allows 3% down on a conventional loan and can require a homebuyer class.