Buying a house is one of the biggest financial decisions you’ll ever make. It’s exciting, a little intimidating, and filled with important steps that can shape your future. Whether you’re a first-time homebuyer or you’ve been through the process before, understanding how to buy a house can help you feel confident and prepared.
Get Pre-Approved for a Mortgage Before You Try to Buy a House
A mortgage pre-approval gives you a clear idea of your budget and shows sellers you’re serious about buying. To get pre-approved, you’ll need to provide financial documents like tax returns, pay stubs, and bank statements to a lender. They’ll evaluate your information and let you know how much you qualify for.
A pre-approval letter can give you a competitive edge, especially in a hot housing market where multiple buyers might be interested in the same home.
Find a Real Estate Agent
A great real estate agent is invaluable in helping you find the right home, negotiate offers, and navigate all the paperwork. Look for an agent who knows the local market, has experience in your price range, and understands your needs.
Agents have access to listings before they hit public websites, so working with one can give you a head start. They’ll also help you avoid common pitfalls and ensure the process runs smoothly from start to finish.
Start House Hunting
Once you have your budget and an agent, it’s time for the fun part—looking at homes. Make a list of your must-haves, like location, number of bedrooms, and any special features you want. Be realistic about what you can afford, and stay open to compromises.
As you tour homes, pay attention to details beyond just the aesthetics. Check for signs of structural issues, ask about the age of major systems (roof, HVAC, plumbing), and consider how the neighborhood fits your lifestyle.
Make an Offer
When you find a house you love, you’ll need to submit an offer. Your real estate agent will help you determine a competitive price based on market conditions and comparable home sales in the area.
Offers typically include the purchase price, contingencies (like home inspections and financing), and any requests for repairs or seller concessions. The seller can accept, reject, or counter your offer. If there’s a bidding war, you may need to increase your offer or adjust your terms to make it more appealing.
Get a Home Inspection and Appraisal Before You Buy a House
Once your offer is accepted, the next steps are the home inspection and appraisal. A home inspection uncovers any potential issues with the property, such as structural problems, electrical issues, or plumbing concerns. If major issues are found, you can negotiate repairs or even walk away from the deal.
A third party conducts the appraisal to determine the home’s value. If the appraisal results in a lower price than your offer, you may need to renegotiate with the seller or pay the difference in cash.
Secure Your Mortgage and Close the Deal
At this point, your lender will finalize your loan. You’ll need to submit any remaining paperwork and ensure all conditions are met. The lender will also conduct a final review before issuing the loan.
Closing day is when everything becomes official. You’ll sign a stack of documents, pay closing costs (which usually range from 2-5% of the purchase price), and receive the keys to your new home. Before signing, review all paperwork carefully to ensure everything is accurate.
Buying a home is a journey, but with the right preparation and guidance, you can confidently navigate the process and find a place you truly love.
FAQs on How to Buy a House
How much should I save for a down payment?
It depends on the loan type. Some conventional loans require as little as 3-5%, but putting down 20% helps you avoid PMI and lowers your monthly payment.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate of what you might afford, while pre-approval is a thorough review of your finances by a lender, giving you a more accurate loan amount and a competitive edge when making an offer.
How long does it take to buy a house?
The process can take anywhere from 30 to 90 days from the time your offer is accepted, depending on financing, inspections, and other factors.
What are closing costs?
Closing costs are fees associated with finalizing your mortgage, including loan origination fees, title insurance, property taxes, and more. They typically range from 2-5% of the home’s price.
Should I buy a home with a homeowners association (HOA)?
HOA communities come with fees and rules but also provide amenities and help maintain property values. Consider whether the benefits outweigh the costs for you.
First Impression Home Inspections offers inspections in the Shenandoah Valley. If you’re buying a home, contact us to request an appointment.