Step 1: Get Pre-Approved for a Mortgage
Before house hunting, secure mortgage pre-approval. This shows sellers you're a serious buyer and lets you know your budget.
Most lenders require 640+ credit score. The average 30-year fixed rate in 2026 is around 6.8%. Pre-approval typically takes 3-5 days and costs $0-$500.
Pro Tip: Compare rates from at least 3 lenders to save thousands over the life of your loan.
Step 2: Save for Down Payment and Closing Costs
Your down payment doesn't need to be 20%. Here are typical options:
| Down Payment | Pros | Cons |
|---|---|---|
| 3-5% | Lower upfront cost | PMI required |
| 10% | Better rates | Still pays PMI |
| 20% | No PMI, best rates | Larger savings needed |
Closing costs: Budget 2-5% of home price ($6,000-$15,000 on a $300,000 home). These include appraisal, title insurance, attorney fees, and inspections.
Step 3: Find a Real Estate Agent & Start House Hunting
A buyer's agent represents your interests at no cost—the seller pays commission. Look for agents who:
- Have 5+ years of experience in your target area
- Know current market conditions and comparable sales
- Communicate clearly and respond within 24 hours
- Have positive online reviews and references
Start with neighborhoods matching your budget, school ratings, and commute preferences. Average home search takes 3-6 months.
Step 4: Make an Offer & Inspection
Once you find your home, here's what happens next:
- Submit Offer: Include price, down payment, financing contingency, and inspection period (typically 7-10 days)
- Home Inspection: Hire a licensed inspector ($300-$500) to identify structural, electrical, plumbing, and HVAC issues
- Appraisal: Lender orders appraisal to ensure home value matches loan amount
- Title Search: Attorney verifies clear ownership and no liens
- Final Walkthrough: Confirm agreed repairs completed before closing
Step 5: Close the Deal
Closing typically takes 30-45 days after offer acceptance. At closing you'll:
- Sign mortgage documents and promissory note
- Review and sign closing disclosure (3-day waiting period)
- Transfer funds for down payment and closing costs (via wire or certified check)
- Receive keys and take ownership
Have homeowners insurance in place before closing. Most lenders require it.
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