Home ownership is a dream of many across the United States. Instead of paying extravagant rent — sometimes accounting for 15–30% of average income — we hope to put our hard-earned money toward a permanent home. Whether you're hoping to purchase this year or still planning for a future homestead, these tips can help you be an informed and ready buyer.

Just a Dream

Buying a house takes time — don't feel rushed into buying before you are truly ready. If homeownership is still a dream, take this time to decide what your life might look like in 5 years. Where do you want to settle down? Are you planning on having children or animals? Are you considering a job change? Once you nail down these key factors, you'll have a solid foundation for what you want and need in a home when the time comes.

2–5 Years Away

Save, save, and save some more. A healthy down payment is an excellent tool when purchasing your perfect home. The general rule of thumb is 20% of the home's total price. While first-time homebuyer programs may allow down payments as low as 3%, several additional costs can pop up throughout the buying process. Zillow notes that you should expect 2–5% extra in closing costs — meaning your upfront payment could potentially double. Take a hard look at your finances and ask yourself if you are truly ready for that.

Get your credit in check. A credit score above 760 can dramatically change your purchasing power. Not only will you qualify for more homes, but your interest rate will be significantly lower. The difference between a 5% and 3.5% interest rate amounts to about $200 per month — which adds up to $72,000 over a 30-year loan period. Work to keep credit card spending in check, settle any past debts, and stay current on all existing loans.

1 Year Away

Prepare to move. Usually within a year before buying, you'll be deciding to end your lease. Get an actual copy of your lease and read it thoroughly. Make sure you are well aware of:

• Your actual lease end date and required move-out date.
• Whether you have a month-to-month option — this can be a lifesaver if unexpected roadblocks push back your home purchase closing date.
• How much notice you need to give your landlord, which typically ranges from 30 to 90 days.
• What is expected of you when you leave — repainting walls, deep cleaning, replacing lightbulbs. Give yourself time to complete these tasks without stress so you can get your full deposit back.

A Few Months Away

Decide who will be providing your natural gas needs — a new residence is a great opportunity to start fresh with a better energy provider. Check out Kratos Gas & Power for your energy needs.

Start sorting through your belongings. Channel your inner Marie Kondo and shed unwanted items — every bag you get rid of is one less you need to carry to your new home.

Begin inventorying your furniture. Your new place will have a different layout, so start measuring rooms and deciding where furniture will go. This makes moving a much smoother process and can reveal what you might need to buy or get rid of. Many charitable organizations will pick up decent furniture for free and provide a tax credit in return.

Buying a home is like a second job — be sure to prepare yourself at every step of the way.