Buying a Home: Step-by-Step Guide

Congratulations on deciding to buy a home!
 

Homeownership is exciting, but the process involves several important steps. Here’s a clear, concise guide to help you prepare and succeed.

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Step 1: Get Your Finances Ready

Your home-buying journey starts with your credit score and employment history.

• Credit Score:

  • 500–570 → 10–20% down

  • 580+ → 3.5% down (FHA loan)

  • 620+ → VA or USDA loan (0% down), FHA 203k rehab loan, or Conventional loan (usually 10–20% down)

  • 640+ → May qualify for no down payment programs

Tip: The higher your score, the better your rates and loan options.

You’ll also need proof of 2+ years of steady employment (not necessarily the same job).

Learn more about credit score requirements.

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Step 2: Get Pre-Approved for a Mortgage

Unless you’re paying cash, mortgage pre-approval is required. Lenders will review your:

• Tax returns

• Pay stubs

• Credit report

• Bank statements

Pre-approval tells you how much house you can afford. We work with top lenders and can connect you with one.

 

Step 3: Choose Your Realtor

Working with a buyer’s agent (like us!) is free for buyers — the seller pays our commission. Once you’re pre-approved, we’ll discuss your budget, needs, and wish list, then start the home search.

 

Step 4: Make an Offer & Sign the Contract

Once you find the right home, we’ll write an offer. The seller can accept, counter, or reject. After agreement, the process typically takes about 45 days to close. You’ll need some upfront cash for the deposit.

 

Step 5: Home Inspection

Schedule a professional home inspection within 10 days of contract signing. Inspections usually cost $400–$600 and cover roof, plumbing, electrical, and structure.

• Major issues? You can cancel and get your deposit back.

• “As-is” homes mean the seller won’t make repairs, but inspection still helps you make an informed decision.

 

Step 6: Hire an Attorney

Your attorney will handle the title search and closing documents. Fees are generally included in closing costs.

 

Step 7: Understand Closing Costs

Closing costs include taxes, insurance, and appraisal fees — usually around 6% of the home’s price. Sometimes sellers agree to cover part of these costs.

 

Step 8: Final Walk-Through & Closing Day

Do a final walk-through the day before closing to ensure the home is in agreed condition.

On closing day, you’ll sign the final paperwork, pay your down payment, and get your keys — the home is officially yours!

 

Typical Home-Buying Costs

• Deposit: Amount varies but goes toward the purchase price.

• Inspection: $400–$600 (recommended).

• Appraisal: $300–$400 (required by lender).

• Down Payment: Based on loan type and credit score.