The Home Buying Process: A Step-by-Step Guide

Step 1: Get Pre-Approved

Before you start touring homes, getting pre-approved for a mortgage tells you exactly how much you can borrow and signals to sellers that you're a serious buyer. Pre-approval involves a credit check and a review of your income, assets, and debts.

Step 2: Find Your Home

Work with a licensed real estate agent to search for homes within your budget. Factor in property taxes, HOA fees, and estimated maintenance costs — not just the purchase price.

Step 3: Go Under Contract

When your offer is accepted, you enter the contract phase. You'll typically deposit earnest money (1–3% of the purchase price) to show good faith. You'll also schedule a home inspection to identify any material issues.

Step 4: Complete Your Mortgage Application

Once under contract, your lender will order an appraisal to confirm the home's value supports the loan amount. You'll submit final documentation — pay stubs, tax returns, bank statements — and your loan will go through underwriting.

Step 5: Close on Your Home

At closing, you'll sign the final loan documents, pay your closing costs (typically 2–5% of the loan amount), and receive the keys. The entire process from pre-approval to closing typically takes 30–45 days.