Housing and Renting
Where you live affects your stability, finances, and peace of mind. Whether you are renting your first apartment or planning to buy a home, understanding the process helps you avoid stress, save money, and make confident decisions.
This guide covers everything you need to know about financing a house, renting, applications, insurance, and red flags to watch for.
1. Financing a House
Financing a home is one of the biggest financial commitments you will make, and understanding each step helps you avoid stress, surprises, and unnecessary costs.
Step 1: Check Your Credit
Your credit score affects your approval and interest rate.
What lenders look for
580 and up qualifies you for many mortgage programs
620 and up gives you the best conventional rates
Anything above 620 is treated the same, so a 620 and a 900 receive the same rate category
A higher score still helps with other types of loans and insurance, but for mortgages, 620 is the key threshold.
Step 2: Understand Your Budget
Your mortgage is only one part of the full monthly cost. Include
mortgage payment
property taxes
homeowners insurance
utilities
maintenance and repairs
HOA fees if applicable
Do not buy at your absolute max. Choose a home that gives you financial breathing room.
Step 3: Know Your Debt to Income Ratio (DTI)
DTI is one of the biggest approval factors.
It compares your monthly debt payments to your monthly income.
Lenders want to see your DTI under these levels:
43 percent or lower for most loans
50 percent is the max for many FHA loans
Lower DTI gives you stronger approval and better rates
DTI includes car loans, credit cards, personal loans, student loans, and your future mortgage payment.
Keeping your DTI low shows lenders you can handle the responsibility of a home loan.
Step 4: Get Pre Approved
A lender reviews your credit, income, and DTI.
You receive a pre approval letter that shows your official price range and makes your offers stronger.
Step 5: Choose Your Mortgage Type
Conventional
Best for buyers with solid credit and stable income.
FHA
Flexible credit requirements and low down payments.
VA
No down payment and no mortgage insurance for eligible veterans.
USDA
Zero down payment for approved rural areas.
Each program has different requirements for credit, down payment, income, and property type.
Step 6: Find a Real Estate Agent
Look for someone with strong reviews, local experience, and clear communication.
Your agent helps you find homes, write offers, negotiate, and navigate all the paperwork.
Step 7: Make an Offer
Your offer is based on
market value
comparable homes
condition of the property
your budget
seller motivation
This step often includes negotiation.
Step 8: Get a Home Inspection
Always inspect the home before committing. Look for
structural issues
electrical problems
roof damage
plumbing leaks
foundation cracks
mold or water damage
A strong inspection protects you from buying a home with hidden, expensive problems.
Understanding credit, DTI, and the full cost of ownership makes the home financing process smoother, safer, and more affordable long term.
2. Renting versus Owning
Both renting and owning have real benefits. The right choice depends on your lifestyle, goals, and financial situation.
Renting
Pros
Lower upfront costs
Landlord handles repairs and maintenance
Easier to move
No property taxes
No long term commitment
Best for
People with temporary living plans
Lower budgets or saving for a future purchase
Unpredictable income
Anyone not ready for long term responsibility
Considerations
Rent can increase yearly
You do not build equity
Limited control over changes or upgrades
Owning
Pros
Builds equity over time
Stable monthly payments when using fixed mortgages
Freedom to customize and renovate
Long term wealth building
Tax benefits depending on location
Best for
People with stable income
Long term plans in the same area
People ready for maintenance and responsibility
Considerations
Higher upfront costs
You are responsible for repairs
Property taxes and insurance add to monthly costs
Summary
Rent for flexibility
Own for stability and long term wealth
Both can be smart choices when they align with your goals and your financial reality.
3. Understanding Equity, Maintenance, and Responsibilities
When comparing renting and owning, it helps to understand what you gain, what you pay for, and what you are responsible for.
What Is Equity
Equity is the portion of the home you truly own.
How equity grows
Each monthly mortgage payment reduces your loan balance
Home values can increase over time
Upgrades can raise your home’s value
Why equity matters
It becomes part of your net worth
You can borrow against it if needed
You get it back when you sell
Equity is one of the biggest ways homeowners build wealth over time.
Renters do not build equity because they are not paying toward ownership.
Maintenance Responsibilities
As a Renter
The landlord is usually responsible for
Repairs to appliances
Plumbing issues
Heating or cooling problems
Electrical issues
Structural repairs
Pest control (unless caused by tenant behavior)
Renters are responsible for
Keeping the unit clean
Replacing lightbulbs or batteries
Minor wear and tear upkeep
Reporting problems quickly
If something breaks that you did not cause, the landlord fixes it.
As a Homeowner
You are responsible for everything unless covered by a warranty.
Homeowner responsibilities
Roof repairs
Plumbing issues
Heating and AC repairs
Electrical repairs
Appliance replacements
Pest control
Property upkeep
Lawn or yard maintenance
Snow removal depending on location
Owning gives freedom, but with responsibility. Every repair comes out of your pocket.
Additional Costs Homeowners Pay
Property taxes
Homeowners insurance
Maintenance fund (recommended one percent of home value per year)
HOA fees if applicable
Renters do not pay these costs, except for optional renters insurance which is inexpensive.
Summary
Renting means fewer responsibilities and no equity.
Owning means full responsibility but long term financial growth.
Both are smart choices depending on your goals, income stability, and lifestyle.
4. How to Apply for an Apartment
Landlords want to know two things:
Can you afford the rent, and will you take care of the property
Having your documents ready makes the process smooth and increases your chances of approval.
What You Need
ID
Driver’s license, passport, or state ID
Proof of income
Pay stubs from the last thirty to sixty days
Tax returns if self employed
Bank statements
Job offer letter if starting a new job
References
Previous landlords
Employer or personal references if you are a first time renter
Credit check
Most landlords require a soft or hard pull
Higher credit means easier approval
Rental history
Past addresses and landlord contact information
Steps to Apply
Search apartments within your budget
Look for places where rent is about thirty percent of your income.Schedule tours
In person or virtual, check the condition and ask questions.Fill out the application
Most applications are online. Be honest and accurate.Pay application fees
Fees cover background and credit checks.Pass screening
Landlords look at your income, job stability, credit, and rental history.Sign the lease
Read it fully before signing, including fees, rules, and move in costs.
Tips for Approval
Have all documents ready in a folder
Apply fast, good apartments go quickly
Be polite and responsive
Ask questions before signing
Check for hidden fees like pet rent, parking, or utilities
Make sure the lease matches what you were told
Summary
Applying for an apartment is easy when you are organized and prepared.
Strong documents, quick responses, and clear communication make you stand out as a reliable tenant.
5. What Landlords Look For
Landlords want tenants who pay on time, take care of the property, and communicate responsibly. Knowing what they look for helps you prepare and increases your chances of getting approved.
What They Check
Income
Most landlords require your income to be two to three times the monthly rent.
This shows you can afford rent without struggling.
They may ask for
pay stubs
bank statements
tax returns
employment letters
Credit Score
Higher scores show responsibility with money.
Landlords check for
on time payments
low debt
no major delinquencies
Landlords care more about your history than your exact number.
Rental History
They want to see that you
paid rent on time
kept the property clean
had no issues with neighbors
Returned the unit in good condition
They may contact your previous landlords or ask for references.
Evictions
Past evictions are a red flag, but not always a dealbreaker if you can explain the situation and show improvement.
Background Check
Landlords look for a clean or stable history.
Minor issues may not disqualify you, but honesty matters.
Job Stability
Longer employment at the same company looks reliable.
If you recently started a job, providing an offer letter can help.
How to Make a Strong Impression
Have documents ready
Be polite and responsive
Explain anything unusual in your history upfront
Show steady income and clean finances
Preparation and honesty make you stand out as a trustworthy renter.
6. Renters Insurance
Renters insurance protects you from financial loss when unpredictable situations happen. It is one of the most affordable and valuable forms of insurance you can have as a tenant.
What Renters Insurance Covers
Personal Property
Protects your belongings if they are damaged or stolen due to
theft
fire
smoke
vandalism
burst pipes or water leaks
certain weather events
This includes things like
clothes
electronics
furniture
appliances you purchased
jewelry or valuables (sometimes with limits)
Liability Coverage
If someone gets hurt in your apartment or if you accidentally damage someone else’s property, liability coverage protects you from large out of pocket costs.
Examples
Your dog bites someone
Someone slips inside your apartment
You accidentally cause water damage to a neighbor’s unit
Loss of Use
If your apartment becomes unlivable due to a covered event, insurance may pay for
hotel stays
food costs
temporary housing
Cost
Renters insurance is very affordable, usually ten to twenty five dollars per month depending on
your location
coverage limits
deductible
added protections
Why You Need Renters Insurance
Your landlord’s insurance does not protect your belongings
The landlord only insures the building structure, not anything you own inside it.
It protects you financially during unexpected events
One accident or break in can cost thousands.
Most leases require it
Many landlords make renters insurance mandatory to protect both sides.
It gives peace of mind
You have coverage even if something completely out of your control happens.
Renters insurance is simple, affordable, and essential for anyone living in a rented space.
7. Homeowners Insurance
Homeowners insurance protects both the structure of your home and everything inside it. It is a requirement for most mortgages and one of the most important financial protections you can have as an owner.
What Homeowners Insurance Covers
Dwelling Coverage
Protects the physical structure of your home against
fire
theft
storms
hail
wind
burst pipes
fallen trees
This covers the walls, roof, floors, built in appliances, and anything permanently attached to the home.
Personal Property
Covers your belongings such as
furniture
clothing
electronics
decor
tools
kitchen items
Coverage applies even if your items are stolen outside your home, like from your car.
Liability Protection
Protects you if someone is injured on your property or if you accidentally damage someone else’s property.
Examples
A visitor slips and falls
Your tree falls on a neighbor’s fence
Your dog bites someone
Loss of Use
If your home becomes unlivable due to a covered event, insurance may pay for
hotel stays
temporary housing
extra food and living expenses
What Affects Your Premiums
Location
High risk areas for storms, fires, crime, or flooding increase the cost.
Age and Condition of the Home
Older homes or outdated electrical, roofing, or plumbing can raise premiums.
Credit Score
Many insurers use credit based insurance scores. Better credit usually means lower rates.
Coverage Amount
Higher coverage limits and lower deductibles increase your premium.
Claims History
If you have multiple past claims, your rate may be higher.
Why Homeowners Insurance Matters
Mortgage lenders require it
You cannot get a home loan without proof of insurance.
Protects your investment
A home is often your largest asset. Insurance helps ensure one disaster does not destroy your finances.
Covers emergencies you cannot predict
Storms, accidents, and damage can happen without warning.
Smart Tips
Compare quotes from multiple companies
Review your coverage yearly
Ask about discounts (bundling, alarm systems, good credit)
Understand what is not covered (floods and earthquakes need separate policies)
Homeowners insurance is essential protection for your home and financial stability.
8. Red Flags in Apartment Hunting
Not all apartments or landlords are reliable. These signs help you avoid unsafe, unfair, or low quality living situations.
Red Flags
Strong odors
Mold or dampness
Peeling paint
Broken or loose locks
Pest activity
No maintenance records
Visible water damage
Unwilling to fix issues before move in
Cash only rent payments
Lease missing important details
Landlord avoids or dodges questions
Too many complaints or bad reviews online
Unsafe neighborhood
No heat or AC during tour
Appliances that do not work
Lights flickering or electrical issues
Red Flags in Landlords
Refuse to show the unit in person
Pressure you to sign quickly
Do not provide a written lease
Ignore repair requests during the tour
Disorganized or unprofessional
Changes the price or terms repeatedly
Avoids answering direct questions
Tells you not to worry about “little things” that are actually big issues
If something feels off, trust your instincts and walk away.
Green Flags in Apartment Hunting
These signs show reliability, safety, and a landlord who takes care of their property.
Green Flags
Clean hallways and common areas
No strong smells or moisture issues
Fresh paint and good lighting
Secure building entry
Well maintained appliances
Working heat and AC
Safe, well lit neighborhood
Clear and detailed lease
Transparent pricing with no hidden fees
All repairs handled before move in
Responsive communication
Up to date smoke detectors and carbon monoxide detectors
Green Flags in Landlords
Answers questions clearly
Provides all documents without hesitation
Encourages you to read the lease fully
Professional, respectful, and organized
Shows maintenance records
Explains how to submit repair requests
Does not pressure you
Follows all legal requirements
A good landlord and a well maintained property make renting easier, safer, and more enjoyable.
9. Red Flags in House Hunting
Buying a home is a major investment, so spotting warning signs early protects you from expensive repairs and hidden problems.
Property Red Flags
Strong odors
Visible mold or moisture
Fresh paint only in small random areas
Cracks in walls or ceilings
Sagging floors
Roof stains or signs of leaks
Foundation cracks
Uneven floors or doors that do not close properly
Old electrical panels or exposed wiring
Flickering lights
Low water pressure
Brown or rusty water from faucets
Basement dampness or water lines on walls
Termite damage or signs of pests
Missing gutters or poor drainage
Windows that do not open or close
Strange noises in HVAC system
Overgrown yard or neglected exterior
Seller or Agent Red Flags
Avoids answering questions
Refuses a home inspection
Pushes you to waive inspections to “win the offer”
Inconsistent stories about repairs or upgrades
Won’t provide disclosures
Says issues are “normal for old homes” without explanation
Rushes you through the showing
Acts annoyed when you look closely at things
Price seems too low for the area without explanation
Multiple major repairs not documented
Neighborhood Red Flags
High crime reports
Poorly maintained surrounding homes
Empty or abandoned houses nearby
Loud or disruptive environment
Strong industrial smells or loud traffic
Flood zones without insurance explanation
If something feels off, trust your instincts. A home should feel safe, stable, and worth the investment.
Green Flags in House Hunting
These signs show a well maintained home, honest sellers, and a safe investment.
Property Green Flags
No musty or chemical smells
Clean and well maintained interior
New or well cared for roof
Solid foundation with no major cracks
Updated electrical panel
Good water pressure
Modern HVAC system or clear maintenance history
No signs of water damage
Windows that open smoothly
Level floors and quiet doors
Clean basement or crawl space
Proper drainage around the property
Neat landscaping and maintained exterior
Recent service records for major systems
Seller or Agent Green Flags
Encourages a home inspection
Provides full disclosure without hesitation
Answers questions clearly
Offers repair receipts or contractor documentation
No pressure to rush
Allows multiple showings or longer viewing time
Transparent about neighborhood, utilities, taxes, and maintenance
Neighborhood Green Flags
Well maintained homes
Clean streets and sidewalks
Grocery stores, parks, and necessities nearby
Good lighting at night
Quiet and peaceful atmosphere
Stable property values
A home with strong green flags offers safety, comfort, and long term value.
Your Next Step in Housing
Housing is one of the most important decisions you make. When you understand the process, the requirements, and the red flags, you protect yourself financially and emotionally.
Next, explore
Credit and loans
Money management
Real world life skills
Your Resource Hub will guide you step by step so you can choose the right home with confidence and clarity.