What's the biggest payment you make every month? If youre a renter, it's probably your rent. But did you know that you can pay your rent on time, every time, for years, and it may never show up in your credit history? It's pretty frustrating, especially if you'd like to buy a home someday and youre trying to build your credit.The good thing is thats changing right now. Heres what you need to know and why it could open a door you thought was closed.The Problem for Would-Be BuyersYoure not the only one frustrated. According to Zillow, nearly a third of applicants (32.88%) get denied a mortgage due to insufficient credit history - not missed payments or too much debt. Just not enough credit history for a lender to say "yes."Its the most common hurdle would-be buyers have. As Zillow explains:Nearly one-third of mortgage applicants are denied a loan because of insufficient credit history, making it the most common reason for a denial.But theres finally a way in now that how credit gets measured is changing.The Good News: Credit Is Getting BroaderAs Michael Sherman, General Manager and Senior VP at Zillow Rentals, explains:"Affordability is the headline in housing right now, and access to financing is a very important part of the story. Credit history is a barrier standing in the way of too many potential buyers. Rent reporting is a direct way to address that.Heres what Sherman is talking about. New credit models are emerging that take on-time rent and some utility payments into consideration to help renters get credit for the bills they already pay.VantageScore is one company with a new credit model that has been approved for use by the Federal Housing Finance Agency (FHFA). And that roll out could have a big impact on renters like you.A recent study by VantageScore found that nearly 4 million U.S. renters could finally become eligible for a mortgage if their on-time rent payments were counted as part of their credit history. Now, this isnt a guarantee that it will suddenly count for every would-be buyer, but it does crack open the door.Heres the catch though, you still have to walk through it.Counting Rental Payment History Is Not AutomaticThere are more options available to build credit, but you have to be proactive. Your rent won't necessarily count unless you make sure it does. And the sooner you take credit for your payments, the better.Here's how to get started based on a few tips from Experian, the Consumer Financial Protection Bureau (CFPB), and FICO: Ask your landlord or property manager if your rent is being reported. If it's not, opt in.  If your landlord doesn't offer rent reporting, there are services available. Be sure to check fees and which bureaus they provide your data to. Check your credit reports for errors. Mistakes happen and fixing them is one of the quickest ways to strengthen your profile. The CFPB offers step-by-step instructions on how to fix errors on your report. Follow basic, important credit rules. Pay your bills on time, keep your card balances low, and don't apply for a bunch of new credit at once. Dont close any accounts - even if you have paid them off and don't use them often. Diversify your profile by getting a secured credit card or becoming an authorized user on someone else's account to help you build history beyond rent. These steps take a little time and effort, but it could be worth it if it starts building up your credit history. Just remember, not every lender uses the same scoring model and there are more changes on the horizon. So, the sooner you get credit for the work you do, the better. Even if you're not sure when you might be ready to buy a home, talking to a lender is a good place to start. A professional loan officer will help you make a plan and help you figure out a timeline to get ready to officially apply and buy.Bottom LineThe credit landscape is changing, but action is required on your part. You have to take credit for what you do. And the sooner you get started, the better.Ready to see where you stand? A quick conversation with a loan officer costs you nothing and could show you you're closer to owning a home than you think.

When you picture buying your first home, chances are youre imagining a traditional single-family house with its own yard, maybe a garage, and little extra room to grow. But with affordability still tight, getting everything on that list right away may come with a higher price tag than youre comfortable with right now.So, if youre running the numbers and buying a house like that feels like a stretch, there may be another way in. A condo.Because in a lot of markets, condos come with a significantly lower price tag. And that could make them a smart way to get your foot in the door.Condos Can Cost Less Than You ThinkAccording to a recent study by Zillow: Condos are the most commonly affordable home type in virtually every metro. At the starter level, the savings can be pretty significant. Nationally, starter condos average $197,468 thats about 6% less than the typical starter home.And depending on where you live, the difference can be much bigger. Zillow identified metro areas where typical starter condos are priced significantly below the estimated home price a median-income household could afford. Here are the top 10 according to that research (see chart below).In Houston, the gap is at its widest. There, a typical starter condo was valued at about $85,600 72% below the price considered affordable based on the area's median household income. Of course, every market is different. But the bigger point is this: if you've only been searching for traditional single-family houses, you may be overlooking some of the more affordable options on the market.And even if your city didnt make this list, thats okay. The trend holds true in many places across the country. Heres why.A Condo Could Give You a Different Way InPart of the reason condos can cost less is pretty straightforward. They're typically smaller. And less square footage can mean a lower purchase price.So, if you can make do with a bit less space or youre coming from a smaller apartment now, this can be a great way in. Plus, on the upside, you wont have to buy a ton of furniture to fill out a bigger house. You can get a potentially lower price up front and spend less once you move in because youll need less new stuff to fill that empty space.And more buyers are making that trade off on space to offset the current affordability challenges. Ali Wolf, Chief Economist for New Home Source, explains:In addition to favoring smaller floor plans, more consumers are showing a willingness to live in an attached home. This shift is not driven by a preference for shared walls, but by a pursuit of value.That's really the heart of it. Looking at condos isn't necessarily about wanting less. It's about finding another way to make your move happen with the budget you have.Don't Rule Out an Option That Could WorkIf you've been struggling to find a house you like at a price you can comfortably afford, talk to your agent about adding condos to your search.You may find something in a neighborhood you thought was outside your budget. You could get access to amenities you wouldn't otherwise have. And you may be able to become a homeowner sooner rather than waiting for the numbers on a single-family house to work.While there are trade-offs like shared walls, less outdoor space, and an HOA fee to factor into your monthly budget, maybe thats worth it if you finally get your own set of keys.Plus, a lot of the times, a condo community comes with great amenities like pools, gyms, and the condo association handles at least some of the maintenance. Which is closer to what youre used to from your apartment it could make the transition to homeowner not just more affordable, but that much easier too.Bottom LineThe first home you buy doesn't have to be a single-family house. If affordability has been holding you back, let's expand your search and see whether a condo could fit the price point you're looking for.

Whether you own a house already or youre looking to buy one, you probably care about home prices. But its not always easy to figure out whats really happening right now, especially if you look at the headlines.One says home prices are falling. The next says theyre still climbing.So, which ones right? It comes down to where you live.Whats Really Going on with Asking PricesPart of the confusion out there may be based on whats happening to asking prices and how the media is talking about it. Theyre calling attention to how asking prices are falling, but dont give the full context or say that seasonality is at play. So here it is.Right now, there are more homes on the market than at any other time since November 2019. And with mortgage rates rising since the spring, those homes are taking a little longer to sell. One way to help a home sell quickly in that environment is to have a lower asking price.According to HousingWire Data, the median asking price is down from $449k in early August to $435k just 2 months later (see graph below):Thats a dip of about 3%, and a lot of it is normal for this time of year.Asking prices cool off every fall once the busy summer season wraps up. With fewer buyers this time of year, sellers price a bit more competitively. Todays rates play a role too, since sellers are pricing to match what buyers can afford right now. And thats a good thing. Smart pricing helps homes sell.Just keep in mind, thats a national list price. It doesnt show what homes near you are actually selling for. So before you react to a headline, ask a local agent whats really happening in your area.Where You Live Changes EverythingRealtor.com explains:While national headlines might suggest a buyers market is taking hold, the reality on the ground depends heavily on where and what youre trying to buy. Local trends can diverge sharply from national averages, especially when you factor in price range, property type, and post-pandemic market dynamics.The latest numbers from S&P Cotality Case-Shiller Index show how true that is. Over the past year, sales prices in Chicago rose almost 7%. In Seattle, they dipped about 1.6%. Thats a gap of nearly 9 percentage points between two major cities (see graph below):That gap changes your game plan. Selling in New York, where prices are up almost 6%? You may not need to cut your price. Buying in Denver or Las Vegas? You may have more room to negotiate.Why You Dont Need To Worry About a CrashJust in case youre seeing those slight declines in some markets and worried it means a bigger crash is coming, heres what you need to remember. Even in the major metros where prices are down, the declines are 2% or less. Thats a long way from a crash like 2008. And if you look back at the graph above, there are more cities in the green than in the red.And over time, home values have a strong track record. The Federal Housing Finance Agency (FHFA) says national prices have grown year-over-year every quarter since 2012. Go back further, and a $100k home bought in 1991 would be worth about $436k today, even with the 2008 crash factored in (see graph below):So, this short-term dip probably wont stick around. The small declines were seeing now are in markets that overheated during the pandemic. As a whole, the market is headed back to normal and normal means prices should rise over time.Bottom LineNational headlines cant tell you what your home is worth or how much room you have to negotiate. Local data can. If youre thinking about buying or selling, lets look at how prices are moving in your area, so you can set your price or make your offer with confidence.