Statistics show that more than two-thirds of all renters plan to buy a home in the next five years. If you are among those hopeful renters, heed these ten tips to make your dream become a reality.

There are three words you need to learn, and they are save, save, save. Gone are the days when you could buy a home with a down payment of five percent or even less. Today's lenders are pretty much expecting twenty percent down when you decide to buy. And that's a good thing for several reasons. First of all, you won't have the expense of private mortgage insurance tacked onto your monthly payment. Plus, you will build equity in your home more quickly.

Pay down your debt. The days of living off credit cards as good as ended with the financial meltdown. Lenders will want you to keep your monthly expenses at less than forty percent of your total income.

Recognize all the costs of home ownership. Besides mortgage, you'll pay for water, sewage, trash pickup, electricity, and heat. You'll need cable and phone connections. Allow for property taxes and insurance. Plan on having something every month for maintenance. Decide now if you can really afford home ownership.

Request a copy of your credit report from all the major credit agencies. It's true that you can get a free credit report every year, but none of the credit agencies will tell you the three-digit number that is your credit score unless you pay them. It costs ten to fifteen dollars to learn your score. The lower your number is, the higher your interest rate will be.

Once you've obtained a copy of your credit report, make certain that any adverse information actually pertains to you. No one ever thinks identity theft will happen to them, but it does. You should also make certain that adverse information is removed from your report if you've taken care of a matter. And if there's something that's older than seven to ten years, even if you never took care of it, write to the credit companies and request that they remove it.

Do not fall victim to some of the plans that charge you to clean up your credit score or pump up your loan application. Everything that these people are doing, you can do for yourself, at no fee.

Find out what credit incentives are available to new buyers. For example, at the time of this writing there is an $8,000 tax credit for first-time home buyers. You cannot use any of this credit for the first 3.5% of your down payment, but you can use it for the rest of your down payment. Or, you can keep it for upgrades when you buy the home. That particular tax might not exist as you read this, but there is likely to be some new iteration in effect.

Make a list of all the features that are important to you in a home, as well as the neighborhoods that you prefer. When you begin to house-hunt, you want a clear idea of what you're searching for. You are unlikely to get everything you want in a house, but it's good to assess your priorities.

Choose a real estate agent who works full-time at his or her job. You don't need someone who is moonlighting to handle what will be the biggest purchase of your life.

As your year of planning winds down, you can begin to interview lenders and get prequalified for a loan. Visit three lenders to see what programs and mortgage rates are available. Choose a lender in your own community so that you can develop a personal relationship throughout the process.