How to move out of your parents’ house in 18 steps

Moving out of your parents’ house is a big step toward independence and growth. But how do you know if you’re ready to live on your own? If you plan on buying your first home, it’s important you know what to expect and how to set yourself up for success.

1. Determine that you’re ready to move out

To set yourself up for a positive, straightforward transition, make sure you’re ready for the responsibility of homeownership. Here’s what you need:

• Reliable income and employment. Lenders want to know you can afford a 15- to 30-year mortgage. That means a steady income you can document with stubs or W-2s.
• Healthy credit score. While some loans are available with a score as low as 580, aiming for 720 or higher can unlock better terms and save you money in the long run.
• Low or manageable debt. Paying down what you owe before taking on a home loan can give you more financial breathing room.
• Understanding all the costs. Be prepared to pay a down payment, closing costs, property taxes, insurance, utilities, and regular maintenance.

2. Discuss your decision with your family and friends

Let your parents and close friends know about your plans. If questions or worries come up, share how you’ve prepared. Talk about your financial planning, how you’ll handle day-to-day responsibilities, and what safety measures you’ll have in place. When your loved ones see your confidence and thoughtfulness, they’re more likely to support your move and offer guidance or help based on their experiences.

3. Set a deadline for your move

When should you move out? That will depend on your situation. If you’re buying a home, you’ll want to think about:

• The time of year
• Current housing market conditions
• Availability of homes
• Stability in your personal life

4. Calculate your budget

You need to be sure you can afford your monthly payment without being stretched too thin. Start by tracking your after-tax income; everyday fixed expenses like the mortgage, food, and transportation; and variable expenses, like subscriptions and entertainment. Then look at what’s left. This gives you a realistic picture of how much house you can afford, while still leaving room for savings and emergencies. Honestly assessing your budget can help you decide whether to pay off debt or save for a house.

5. Research where you want – and can afford – to live

The right location isn’t just about finding a place you like. It’s about finding a place that supports your goals and your budget. Ask yourself:

• Can I build a stable life here? Are there job opportunities that align with my career path or goals for growth?
• What do I need nearby? Think about essentials like grocery stores, health care, public transit, and recreation.
• Is it affordable? What’s the cost of living? Will housing costs leave you enough room to live comfortably?
• How important is proximity to loved ones? Would being closer to family or friends offer emotional support or a stronger sense of community?
• What kind of culture and lifestyle am I seeking? Do you want a quiet suburb, a lively city, or something in between?

While this isn’t a complete list, these questions can guide you in choosing a location that aligns with your values, goals, and lifestyle.

6. Save for a down payment and closing costs

To buy a home, you must make a down payment and pay closing costs.

Down payment

While some loan mortgage programs allow for as little as 3% down, how much you’ll need depends on your loan type, financial situation, and the property's value.

Saving for a down payment can be challenging, especially as a young adult or first-time home buyer.

“For young adults who [have a newfound control] over their finances, the hardest part will be adjusting their spending habits to save for a down payment,” says Paul Sundin, certified public accountant and CEO of retirement services company Emparion in Gilbert, Arizona. “Regardless, this is a prerequisite and a defining factor on whether or not buying a home will be possible.”

To save for a down payment, Sundin suggests saving money any way you can. This includes clipping coupons to save on groceries and looking for ways to pay less for auto insurance, renters insurance, health insurance, internet, or your phone plan.

Closing costs

Closing costs are paid to your lender and other parties to finalize the home purchase. These typically range from 3% – 6% of your loan amount. For instance, on a $300,000 home, closing costs could be between $9,000 and $18,000.

Remember, down payments and closing costs are just part of the financial picture. As a first-time buyer, budgeting for other home buying costs like property taxes, homeowners insurance, utilities, maintenance, and unexpected repairs is crucial. Planning ahead will set you up for a smoother transition into homeownership.

7. Boost your credit score

Your credit score is more than just a number – it’s a snapshot of your financial habits. Lenders use it to assess how reliably you manage debt, and it plays a significant role in determining the loan terms you’re offered. Generally, a score of 700 or higher opens the door to better interest rates and more flexible mortgage options.

If your score isn’t where you want it to be, there are steps you can take to improve it over time. Start by focusing on these key habits:

• Pay your bills on time. On-time payments are one of the most significant factors in building good credit.
• Lower your debt. Reducing your credit card balances can help boost your score and improve your debt-to-income ratio.
• Limit new credit inquiries. Avoid applying for new loans or credit cards while preparing to buy a home, as multiple inquiries can temporarily lower your score.

8. Build an emergency fund

An emergency fund is a financial cushion you set aside specifically for the unexpected. It’s not for everyday spending but can protect you when life gets tough, giving you breathing room to navigate challenges. While the ideal amount varies from person to person, a good rule of thumb is to aim for enough to cover 3 – 6 months of essential living expenses. That includes things like housing, groceries, utilities, and insurance.

9. Consider your mortgage options

Research your mortgage options as well as the qualifying credit score and required down payment for each type of home loan. Here are the most common home loan options:

• Conventional loans. Conventional loans are issued by private lenders and not backed by a government agency. Lenders may sell conforming conventional loans to a government-sponsored enterprise like Fannie Mae or Freddie Mac. Some first-time home buyers can qualify for a down payment as low as 3%.
• Federal Housing Administration loans: FHA loans have low down payment options and lower credit score requirements, which may appeal to first-time home buyers.
• Veterans Affairs loans: VA loans are available only to active-duty military personnel, veterans, and their surviving spouses. VA loans require no down payment. There’s also no monthly mortgage insurance, lower interest rates, and no specific minimum credit score.
• U.S. Department of Agriculture loans: USDA loans provide affordable homeownership opportunities in rural areas. If you qualify for this type of loan, you don’t have to make a down payment and will likely pay lower interest rates. Rocket Mortgage^® does not offer USDA loans.

10. Get mortgage preapproval

Before you start house hunting, get preapproved for a mortgage. Preapproval is an estimate of how much a lender is willing to lend you based on your income, assets, credit score, and overall financial picture. A key part of this process is your debt-to-income ratio, which shows how much of your monthly budget goes to debt payments. A lower DTI ratio can strengthen your application and expand your homebuying options.

11. Find a real estate agent

Real estate agents and REALTORS^® are licensed professionals who represent buyers and sellers in real estate transactions. They can:

• Offer insight into the neighborhood or area where you’re looking to buy.
• Give you access to a wide range of available homes through the multiple listing service.
• Help you negotiate a home’s price, repairs, closing date, and more.
• Assist with paperwork and closing.

“Conducting a real estate sale can be overwhelming if you lack the expertise and experience, making it much harder to be successful,” says Shania Patrick, a licensed real estate agent based in Michigan. “Real estate agents represent their clients with their best interest in mind and are committed to providing the best possible outcome.”

You might benefit from a professional’s help as you search for your first home. Consider working with our friends at Rocket to find an agent who’s right for you.

12. Shop for a new home

Searching for a home to buy is an exciting step forward. Before you dive in, it’s helpful to understand what the process looks like.

Typical house hunting includes:

• Setting your budget and getting preapproved for a mortgage.
• Creating a list of your must-haves, nice-to-haves, and dealbreakers.
• Exploring listings on trusted house hunting websites and apps.
• Partnering with a knowledgeable agent or REALTOR^®.
• Visiting homes in person.

13. Make a successful offer

While making an offer looks a little different for everyone, there are a few key steps you’ll likely follow:

• Decide on an offer price. This will be based on the home’s value, market conditions, and your budget.
• Choose your contingencies. Contingencies allow you to cancel the sale without penalty if certain conditions aren’t met. Common contingencies relate to the home inspection, appraisal, and mortgage approval.
• Submit your offer. In most cases, your real estate agent will draft and submit your offer.

Once your offer is in, you’ll typically hear back within 1 to 3 days. If it’s accepted, congratulations! You and the seller will make it official by signing a purchase and sale agreement before moving on to closing, which takes about 30 to 45 days.

14. Pack – and declutter – your belongings

To make packing less stressful, break it down into smaller projects. Start with a single room. As you pack, use the opportunity to declutter. Creating “keep,” “sell,” and “donate” piles can help you stay organized and ensure you’re only bringing what truly matters into your new home.

15. Coordinate your moving plan

Start preparing to move a few months in advance so you have time to stay organized and avoid last-minute stress. A moving checklist can be a game-changer, helping you keep track of tasks, supplies, and important deadlines.

It’s also essential to factor in the cost of your move. A full-service move can cost anywhere from $850 - $20,000, depending on how far you're going, the size of your home, and any extras you choose.

If you're hiring movers, include that in your budget. Prefer to DIY? Save by renting a moving truck and asking friends or family to pitch in.

16. Update your address and set up your utilities

About a month before you move, notify your utilities and other service providers of your address change.

Remember to contact:

• Electricity and gas providers
• Water and sewage treatment providers
• Internet, phone, and cable providers
• Medical and dental service providers
• Home, auto, life, and other insurance providers
• Banks and credit card companies
• Your children’s schools
• Newspaper, magazine, and other subscription providers
• Home alarm system providers

You’ll also want to alert the U.S. Postal Service of your address change so you don’t miss anything sent to your previous address.

17. Furnish and settle into your new home

But before diving into décor, prioritize the basics to help you settle in comfortably. Start with everyday essentials like:

• Cleaning and home maintenance supplies
• Toiletries
• Groceries
• Kitchen appliances
• Furniture

It’ll take a while to settle in fully, but staying organized at the start can make your life much easier.

18. Keep in touch

Staying in touch with the people who matter most can bring comfort, support, and a sense of home, no matter where you are. Whether through regular calls, texts, or video chats, there are plenty of ways to stay close. If you’re still nearby, make time for in-person visits. And if you’ve moved farther away, consider planning trips or virtual hangouts to stay involved in each other’s lives.

The bottom line: Plan before you move

Moving out of your parents’ home is a milestone that’s rewarding and a bit scary. If you follow practical steps to ensure you’re prepared for the process, you’re well on your way to living the independent life you’ve always dreamed of.

If you’re ready to take the leap and buy your first home, take action and start your mortgage application with the Home Loan Experts at Rocket Mortgage.