How to Buy a Home

Becoming a homeowner is an exciting prospect, but it can also be daunting when you’re new to the world of real estate purchases.

Fortunately, plenty of resources and professionals are available to guide first-time homebuyers as they navigate this journey.

If homeownership is on your radar, this quick-start guide will help you learn how to buy a home.

Make a Plan

Start by considering the factors that will influence your home search, including:

• Budget: Down payment, monthly mortgage payments
• Space requirements: Square footage, number of bedrooms and bathrooms
• Location: Distance to work, school district, surrounding areas
• Property preferences: Yard size, neighborhood

Then, determine your ideal timeline for purchasing a home. For example, some homebuyers want to move while school is out for the summer, whereas others want to house hunt during the holiday season when there is less competition for available inventory.

Once you have your requirements and preferences mapped out, begin browsing home listings to get a feel for options that meet your criteria.

Find a Mortgage Lender and Get Pre-Approved

Every mortgage lender offers different rates, fees, and services, so it’s important to shop around and compare lenders to find the best fit.

Once you line up a potential lender, submit your pre-approval application ASAP. Being pre-approved for a mortgage will make your offer more favorable in sellers’ eyes and provide an accurate idea of the loan amount you can afford.

Many mortgage lenders offer the option to apply online, allowing you to get pre-approved in a matter of minutes!

It is important to note that a pre-approval is not a commitment on the lender’s or the buyer’s part. It is simply an indication that the buyer may qualify for a loan up to a certain amount based on the preliminary financial information provided. 

Work with a Real Estate Agent

One of the best ways to reduce the stress of buying your first home is to hire a reputable real estate agent to guide you through your home search and purchase.

Ask friends and family for their referrals or search online to find a highly-rated agent who is knowledgeable about the area where you want to buy.

The right agent can be a valuable resource for first-time homebuyers, helping you navigate the market, negotiate offers, and handle the paperwork.

View Homes to Find Your Perfect Fit

Now for the fun part! 

Attend open houses, schedule private viewings, and explore online listings that meet your criteria. Use each viewing as a learning opportunity to refine your “must-have” list by zeroing in on the features that matter most to you and crossing off those that turn out to be less important. 

Make an Offer

Once you find a property you love—and that fits your budget—work with your real estate agent to draft and submit an offer. Your agent will negotiate on your behalf to reach a mutually acceptable agreement with the seller.

Keep in mind that your offer can be contingent on a favorable home inspection, allowing you to drop out of the contract if you learn of issues that no longer make the property a good choice for you.

Secure Your Mortgage

Once your offer is accepted, it’s time to finalize your mortgage and lock in your interest rate.  

Your lender will request documentation, including:

• Personal identification
• Income verification
• Current credit score
• Active homeowners insurance policy
• Appraisal report showing that the loan amount does not exceed the value of the property 

Close the Deal

You’re almost at the finish line! 

Coordinate with your real estate agent, lender, and attorney to schedule and complete closing. This involves signing paperwork, paying closing costs, setting up an escrow account, and transferring property ownership. 

You may also conduct a final walk-through of the property a day or two before closing to verify that the home’s condition hasn’t changed, all conveyable appliances and accessories are present, and any required repairs have been completed.

Stress Less About Buying a Home

Buying your first home can feel overwhelming, but with the knowledge shared in this guide and a trusted team, you can make the experience much less stressful.

Want to dig deeper into the homebuying journey? Download the First-Time Homebuyer’s Checklist to get answers to some of the most frequently asked questions.