Skip to content
Home » What Are The Steps for Buying a Home?

What Are The Steps for Buying a Home?

Check out our suggested steps for buying a home. Ten steps is all it takes to become a homeowner!

  1. Check your credit and set a price range
  2. Save enough cash to close
  3. Choose a lender and get preapproved for a mortgage
  4. Find a real estate agent
  5. Start hunting for the right house for you
  6. Make an offer
  7. Get your mortgage approved
  8. Get a home inspection
  9. Get a home appraisal
  10. Close on your new home!

Buying a house is an exciting event in life, and a major commitment. It’s imperative that future homeowners don’t miss any of the steps for buying a home, so here is a detailed  checklist for prospective buyers. 

  1. Check your credit and set a price range 

Your credit score determines what kind of loan options and interest rates you will get from lenders, so taking time to pay down debts and establish a good credit history before applying for a mortgage will pay off in the years it usually takes to pay off your house. Your budget for buying a house depends primarily on your Debt-to-Income (DTI) ratio. Lenders want your DTI to be under 43%. 

  1. Save enough cash to close

The down payment is usually 20%of the price of the property. This amount does not include appraisal fees, title insurance, and other costs. If your down payment is less than 20% you’ll be paying a mortgage insurance premium monthly. Before closing, your mortgage provider will give you a Closing Disclosure, which will outline each of your closing costs and the total due at closing. 

  1. Choose a lender and get preapproved for a mortgage 

To get preapproved for a mortgage, you must apply to a lender, which involves providing information about your credit, income, and assets. Your lender will give you a preapproval letter, which states the amount you are qualified for.

  1. Find a real estate agent 

A real estate agent is your representative in the complex home buying process. Our real estate agent will help you write offers and negotiate, making sure you get a house within your budget that fits your needs. 

  1.  Start hunting for the right house 

At this point, you probably have some idea of what you’re looking for in a home, but there are many factors besides location and price. This is where your real estate agent can help you find houses that meet your criteria. 

  1. Make an offer 

An offer is a contract expressing your desire to buy a house, the price you’re willing to pay, and a response deadline. Your real estate agent will write and submit your offer on your behalf. 

  1. Get your mortgage 

Once you’ve chosen a house, you will work with your lender for final approval and loan documents, which typically takes 30 days.

  1. Get a home inspection

A home inspector will uncover any potential problems. They will provide you with a list of any issues they find with the property. Then, you and your real estate agent can negotiate with the seller to have the problems corrected before the sale is closed, grant you credits toward covering some of the costs, or reduce the price if needed. In extreme cases, the inspection may reveal a deal breaker, a severe or expensive problem that makes you reconsider your purchase entirely. 

  1. Get a home appraisal

A home appraisal is an assessment of the value of the property you’re looking to buy. Your lender will require an appraisal before they approve a mortgage, so that they don’t accidentally lend more money than the property is worth. 

  1. Close on your new home!

Now it’s time to close! Review the closing documents provided by the title company and lender and schedule your closing time with the title company, provide closing funds, sign your documents, and get the key to your new home! 

Leave a Reply

Your email address will not be published. Required fields are marked *