The monthly cost of a mortgage payment is often comparable to the monthly rent on a similar sized house, but you are building up equity. Begin saving now so that you will have enough for the down payment when you are ready to buy your first home. More realistic for those starting out is a smaller house and a smaller down payment. Pay all your debts on time. If you have never had a loan or credit card, you need to incur some debt to prove that you are credit-worthy.
Car loans are a good way to establish a credit record.
Another way is to buy furniture or a small appliance using credit provided by the store. Don't pay the loan off all at once, even if you can afford to do so. You have the right to a free copy of your credit bureau record. Check your record every few years to make sure there are no errors. Demonstrate employment and residence stability Before making you a loan to purchase a house, banks generally want you to have lived in your current residence for at least two years.