"I Want to Buy a House in the Next 5 Years... But Where Do I Even Start?"

Buying a home is one of the biggest financial goals many of us dream about — and if you’re anything like most people in their 20s or early 30s, it can feel like a mysterious club with a million hidden rules. You want to do it right, but you’re not sure where to begin.

The good news? Five years is a perfect amount of time to set yourself up for success. Here’s your go-to guide for turning that “someday” dream into a confident, step-by-step plan.

1. Get Clear on Your "Why"

Before you obsess over Zillow listings or Pinterest bathrooms, ask yourself:

• Why do I want to own a home?

• What kind of lifestyle am I imagining?

• Do I want flexibility or roots? A starter condo or forever farmhouse?

The clearer your vision, the more motivated you’ll be to stick to the plan — and the more aligned your decision will be when the time comes.

2. Understand the Upfront Costs

Buying a house isn’t just about affording a monthly mortgage. You’ll also need:

• Down payment (typically 3–20% of the purchase price)

• Closing costs (around 2–5% of the loan amount)

• Moving + setup costs (furniture, deposits, cleaning, etc.)

For a $300,000 home, that could mean saving anywhere from $15,000 to $60,000 just to get the keys. (Don’t panic — we’ll work backwards from there!)

3. Audit Your Current Financial Picture

Start with where you are:

• Income: How much do you make now? Could that grow in 5 years?

• Debt: What’s your current monthly debt? (Student loans, credit cards)

• Savings: What do you have saved — and what could you save monthly?

• Credit score: A higher score = better interest rates. Aim for 740+ if possible.

Use a budgeting tool like the Love Grows Financial Wellness Tracker to see what’s realistic and where you can grow.

4. Set a Dedicated House Savings Goal

Let’s say your goal is to buy a $300K home in 5 years.
You aim to save 10% for a down payment = $30,000
Divide that over 60 months = $500/month

If $500 feels tight, consider:

• Starting smaller (a 5% down payment)

• Living in a lower-cost area

• Boosting income through side gigs or raises

• House hacking (buying with roommates or rental income)

Set up an automatic transfer to a high-yield savings account just for your future home.

5. Work on Building Your Credit

Your credit score can make or break your mortgage rate. Even a small difference in interest can cost you thousands over time.

To improve your score:

• Pay off credit cards in full, on time

• Keep usage below 30%

• Avoid new loans unless necessary

• Don’t close old accounts (they show history!)

Check your credit report annually — you can do this for free at AnnualCreditReport.com.

6. Learn the Lingo and Process

The home buying process has a lot of moving parts. Learn these key terms early:

• Pre-approval: A lender’s estimate of what you can borrow

• Escrow: A neutral third party that holds money during the home purchase

• Appraisal: Verifies the home’s value before the loan is approved

• Inspection: Checks the condition of the home (this can save you from major surprises)

Follow real estate podcasts, blogs, and TikToks that break this down in bite-sized ways.

7. Explore Where You Might Want to Live

Real estate prices vary wildly by city and state. Spend time researching:

• Average home prices in your dream areas

• Cost of living

• School districts, commutes, community vibes

• Rent vs. own comparisons

Pinterest can help you dream. Zillow can help you plan. And walking around neighborhoods can help you feel.

8. Don’t Wait Until You’re “Perfect”

You don’t need to have everything figured out to start preparing. The earlier you plan, the more options you’ll give your future self. Whether you're renting now, saving a little, or simply learning — you're already building your foundation.

TL;DR - Here's Your 5-Year Homeowner Checklist 

- Define your why + dream lifestyle
- Estimate your target down payment
- Budget how much to save monthly
- Improve your credit score
- Track your progress quarterly
- Learn the lingo of loans, inspections, and offers
- Explore cities, neighborhoods, and price ranges
- Use financial tools to stay focused

Buying a house isn’t about being perfect — it’s about being prepared. With the right mindset, habits, and info, 5 years from now could mean walking through the front door of a home you worked for and deserve.

You’ve got this.