Home buying basics: Here's what you need to know!
Learn the essentials of home buying with easy-to-follow guides, tips, and expert advice for first-time buyers.
1. Why do you want to buy?
Start by defining your personal and financial goals. Is homeownership part of your long-term plan? Consider your priorities like location, amenities, and affordability. You should also ask whether buying a home now aligns with your financial situation and if renting for a bit longer might be a better choice.
*Pro tip: Make a list of what is important to you in a home.
2. What is your credit score?
Your credit score directly affects the loan terms and interest rates you'll be offered. The higher your score, the lower the interest rates. Check your score through free reports from the three main credit bureaus: Equifax, Experian, and TransUnion.
3. Save for a down payment
A typical down payment is 20%, though some government loans allow for less. The more down payment, the better your financing options will be.
*Pro tip: If you qualify for an FHA, VA or USDA loan, your down payment can be as low as 3% or lower.
4. What's your budget?
Your home budget should go beyond just the purchase price and down payment. Factor in long-term costs like maintenance, HOA fees, property taxes, insurance, and daily living expenses. Set aside extra funds, get preapproved, and make sure your monthly budget supports the total cost of homeownership.
5. Shop for a mortgage
Getting preapproved for a mortgage shows you’re financially ready and makes your offer stronger to sellers. But preapproval doesn’t lock you in—shop around and compare lenders to find the best rate and terms. A good lender will explain all your options and help you understand the true cost of each. First-time buyers should also ask about special programs or incentives.
*Pro tip: Reach out to me for preferred lenders!
6. Work with a real estate agent
A skilled real estate agent can guide you through the buying process, help you find the right home, and negotiate the best deal. Their local expertise can also help you stay realistic about your budget and options. Before choosing an agent, interview a few to assess their experience, knowledge of the area, and availability to give you the attention you need.
7. Go house-hunting
Online listings are a great start, but visiting homes in person and exploring neighborhoods is key. The 3 rules of real estate is location location location. The right location will (usually) be the most important factor. Be clear with your agent about your priorities, stay flexible with your wishlist, and be ready to act quickly when the right home comes along.
8. Make an offer
Making a strong, well-prepared offer can improve your chances of landing the home you want. Your agent will guide you through crafting an offer that includes price, preapproval, proof of funds, and key terms. Be ready to negotiate, consider contingencies (financing, appraisal, home inspection, etc.) carefully, and once accepted, you’ll sign a purchase agreement and put down an earnest money deposit held in escrow.
Pro tip: Negotiations are common. You can always keep negotiating, or reject their counter offer and move on.
9. Get a home inspection
A home inspection reveals the property's overall condition and any hidden issues, helping you decide whether to move forward, request repairs, or walk away if your contract allows. Inspections typically happen within 10–14 days of signing the purchase agreement and cost around $300–$400 on average.
Pro tip: Ask me to recommend an inspector! But always check reviews and credentials to make sure they meet your needs.
10. Negotiate repairs and credits
It’s common for inspections to uncover issues, especially in older homes. Major problems may need to be resolved before your lender approves the loan. Your agent will help you negotiate with the seller to cover repairs or offer credits. Serious issues like structural damage or faulty wiring can be deal-breakers, so having an inspection contingency gives you the flexibility to walk away if needed.
Pro tip: A home inspection (and other contingencies) contingency is your get out of jail card to get out of the deal.
11. Secure your financing
Preapproval isn’t the final step—your loan must still go through underwriting for full approval. To avoid delays or denials, keep your finances steady: don’t open new credit lines, make big purchases, or change jobs. Stay responsive to your lender, keep documents organized, and double-check all details throughout the process.
Pro tip: There will be a lot of back and forth between your loan officer and escrow. Ask me for help throughout this process as there is a lot of paperwork involved.
12. Do a final walk-through
The final walk-through is your last chance to make sure the home is in the agreed-upon condition before closing. Use this time to confirm repairs were made and everything is move-in ready. Bring key documents and have your agent with you to help address any lingering issues—if something’s not right, closing may need to be delayed until it’s resolved.
13. Close on your house
Once your loan is clear to close, contingencies are met, and the final walk-through is complete, it’s time to officially close on your home. You'll review and sign paperwork, pay closing costs, and finally receive your keys. A few days prior, your lender will send a closing disclosure—compare it to your loan estimate to confirm all terms match. On closing day, take your time reviewing documents, ask questions, and make sure you leave with everything you need to access your new home.
Congratulations new home owner!
