Step-by-Step Home buying Guide: From Pre-Approval to Closing
Your complete roadmap to owning a home with confidence

Step 1: Get Your Finances in Order

Before you start house hunting, review your credit score, pay down debts, and build savings for your down payment and closing costs. This will help you qualify for better mortgage terms.

Checklist:

• Review your credit report

• Set a homebuying budget

• Save for down payment (typically 3–20%)

• Plan for closing costs (2–5%)
  

Step 2: Get Pre-Approved for a Mortgage

Pre-approval gives you a clear price range and makes you a stronger buyer in competitive markets.

What you’ll need:

• Income verification (W-2s, pay stubs)

• Credit history

• Proof of assets

• Employment history

Tip: Work with a local lender who understands your market.

Step 3: Define Your Home Criteria

Clarify what you’re looking for: location, size, amenities, and deal-breakers. Balance your wishlist with what’s realistic in your price range.

Consider:

• Neighborhoods and school districts

• Commute time

• Property type (single-family, condo, etc.)

• Features like yard, garage, or home office

Step 4: Hire a Real Estate Agent

An experienced agent can guide you, negotiate on your behalf, and help avoid costly mistakes. Choose someone local, responsive, and with a strong track record.

Step 5: Start House Hunting

Use your criteria and agent's insights to view homes. Take notes and photos to compare. Once you find the right one, act quickly with a strong offer.

Pro tip: Don’t fall in love with just one house—be prepared with backup options.

Step 6: Make an Offer & Negotiate

Work with your agent to write a competitive offer. Expect back-and-forth on price, closing date, or repairs. Once accepted, sign the purchase agreement.

Step 7: Home Inspection & Appraisal

Schedule a home inspection to uncover hidden issues. Your lender will order an appraisal to confirm the home’s value aligns with the loan amount.

Inspection checklist:

• Roof, HVAC, plumbing, foundation, electrical

• Pest or mold issues

• Safety hazards

Step 8: Finalize Your Mortgage

Your loan goes through underwriting. Submit final documents and avoid making large purchases or opening new credit accounts during this time.

You’ll need:

• Updated income/asset documentation

• Insurance policy

• Final walkthrough clearance

Step 9: Closing

Review and sign all closing documents. Pay your down payment and closing costs. Once funded, the keys are yours!

Bring to closing:

• Valid ID

• Certified funds

• Closing disclosure

• Patience—it may take a few hours

After Closing: Welcome Home!

Change your address, transfer utilities, and secure your new home with updated locks and a maintenance plan.

FAQ

Q: How long does the homebuying process take?
A: Typically 30–60 days from offer to closing, but prep can take longer.

Q: Can I buy a house with student loans?
A: Yes. Lenders consider your full financial picture, not just your student debt.

Q: What's the difference between pre-qualification and pre-approval?
A: Pre-qualification is an estimate; pre-approval is a verified offer from a lender.