Steps to Buying a Home
1. Get Your Finances Ready
- Review your credit score (higher score = better mortgage rates).
- Save for a down payment (commonly 3%–20% of the home price).
- Set aside money for closing costs (2%–5% of purchase price).
- Avoid new debts right before applying.
2. Get Pre-Approved for a Mortgage
- Shop lenders (banks, credit unions, mortgage brokers).
- Submit documents (income, tax returns, employment, assets).
- Get a pre-approval letter — shows sellers you’re serious and defines your price range.
3. Hire a Real Estate Agent
- Choose a buyer’s agent to guide negotiations and contracts.
- They’ll help you find homes, schedule showings, and make offers.
- Pro tip: The seller usually pays the agent’s commission, not you.
4. Search for Homes
- Define your needs: location, budget, size, must-haves vs. nice-to-haves.
- Browse online listings, open houses, and private showings.
- Take notes on neighborhoods (traffic, schools, amenities).
5. Make an Offer
- Your agent helps write the offer with price, contingencies (like inspection/financing), and closing timeline.
- Seller may accept, counter, or reject.
- Negotiation is common (price, repairs, closing costs).
6. Get a Home Inspection
- Hire a licensed inspector (usually costs $300–$500).
- They check structure, roof, plumbing, HVAC, electrical, etc.
- You can renegotiate repairs or price if major issues are found.
7. Get a Home Appraisal
- Required by lenders to confirm the property’s value.
- If the home appraises lower than your offer, you may renegotiate or bring more cash.
7. Finalize Mortgage (Underwriting)
- Provide updated financial docs.
- Lender verifies income, debts, credit, and home details.
- Final loan approval is issued once conditions are met.