Buying a home is exciting, but if you’ve never done it before, the process can feel like a lot. The good news? You don’t have to know everything at once.
While every home purchase is a little different, most buyers move through the same basic steps. Understanding what comes next can help you feel more prepared and confident throughout the journey.
1. GET FINANCIALLY PREPARED
Before you start looking at homes, take some time to understand your finances. This may include reviewing your income, monthly expenses, credit, savings, and how much you’re comfortable spending each month. Keep in mind that the cost of buying a home can include more than just the down payment. Depending on your situation, you may also need funds for closing costs, inspections, moving expenses, and other upfront costs. You don’t need to have every number figured out on your own. This is where talking with a mortgage professional can help.
2. GET PRE-APPROVED FOR A MORTGAGE
A mortgage pre-approval can give you a better idea of how much you may be able to borrow and what your estimated monthly payment could look like. During the pre-approval process, your lender will typically review information such as your income, assets, debts, and credit. Getting pre-approved before you seriously begin shopping can also help you focus on homes that fit within your financing range. Just remember: a pre-approval is not the same as final loan approval. Your mortgage will still need to go through additional review later in the process.
3. START YOUR HOME SEARCH
Now comes the part many buyers look forward to most: finding a home. A real estate agent can help you search for properties, schedule showings, understand the local market, and compare your options. As you look at homes, think beyond the purchase price. Consider things like the location, property taxes, homeowners insurance, potential homeowners association fees, maintenance needs, and how the home fits your long-term plans.
4. MAKE AN OFFER
Once you find a home you want to buy, your real estate agent can help you prepare and submit an offer. An offer typically includes more than just the price you’re willing to pay. It may also include your proposed closing date, financing terms, contingencies, and other conditions of the purchase. The seller may accept your offer, reject it, or make a counteroffer. Once both sides agree to the terms and sign the contract, you’re officially under contract.
5. MOVE FORWARD WITH YOUR MORTGAGE
After your offer is accepted, your lender can begin working toward final loan approval. At this stage, you may be asked to provide updated financial documents or additional information. Your loan will move through processing and underwriting, where the lender reviews the details of your application and confirms that the loan meets the necessary requirements. Responding quickly to requests from your lender can help keep the process moving. And don’t be surprised if you’re asked for additional documentation. That can be a normal part of the mortgage process.
6. COMPLETE THE HOME INSPECTION AND APPRAISAL
The home inspection and appraisal serve two different purposes. A home inspection helps you learn more about the condition of the property. An inspector may evaluate major components of the home and identify potential concerns or repairs. An appraisal provides an independent opinion of the home’s value. Lenders typically require an appraisal to help confirm that the property provides adequate support for the loan amount. Depending on the results and the terms of your contract, there may be additional conversations or decisions to make before moving forward.
7. PREPARE FOR CLOSING
As you get closer to closing day, there are a few final pieces to complete. Your lender and closing team will work to finalize the loan and transaction. You’ll also receive important documents showing the final terms and costs associated with your mortgage. Take time to review everything carefully and ask questions if something doesn’t make sense. You may also need to complete a final walkthrough of the property and arrange for any funds you’re required to bring to closing.
8. CLOSE ON YOUR NEW HOME
You made it to closing day. At closing, you’ll sign the required documents and complete the final steps of the transaction. Once everything is finalized, ownership of the home transfers to you. And then comes the moment you’ve been waiting for: getting the keys to your new home.
Your Home Buying Journey May Look a Little Different
These steps provide a general roadmap, but every home purchase is unique.
Your timeline, loan program, property, financial situation, and purchase contract can all affect what happens along the way.
That’s why having the right people on your team matters. Your mortgage professional, real estate agent, and other professionals involved in the transaction can help guide you through their respective parts of the process.
You don’t have to become a home buying expert before you get started. You just need to understand the next step.