Your Step-by-Step Guide to Buying a Home

Your Step-by-Step Guide to Buying a Home

Buying a home is one of the biggest milestones in life. It’s exciting, but if you’ve never done it before (or it’s been a while), it can feel overwhelming. Here is a detailed breakdown of the entire process – from signing a buyer’s agreement to moving into your new home – so you can feel confident every step of the way.

1. The Buyer’s Agreement

Before starting your home search, you’ll sign a Buyer’s Representation Agreement with your real estate agent. This agreement:

• Establishes that your agent is working solely for you, not the seller.

• Outlines how and when your agent is compensated (in most cases, through the seller’s proceeds at closing).

• Defines the timeframe of your working relationship

• Gives you peace of mind that your agent is committed to your goals, whether that’s finding a first home, an investment property, or a forever dream home.

2. Getting Pre-Approved

Before you fall in love with a home, it’s essential to know exactly what you can afford. This starts by meeting with a lender to get pre-approved. During this process:

• You’ll submit documents such as tax returns, pay stubs, bank statements, and credit information.

• The lender will evaluate your debt-to-income ratio, credit score, income stability, and down payment amount.

• You’ll receive a pre-approval letter, showing sellers you’re serious and financially ready, giving your offer a stronger position in competitive markets.

3. Home Search and Showings

This is the fun part – viewing homes and envisioning your life in each space. Your agent will:

• Set up MLS searches based on your budget, location preferences, and must-have features.

• Schedule private showings or open house tours.

• Guide you on neighborhood insights, resale value considerations, and potential concerns that might not be obvious during a quick tour.

Tip: Stay flexible and open-minded. Sometimes the home that “checks every box” doesn’t feel right, while one with a few compromises feels perfect.

4. Making an Offer

When you find the right home, your agent will draft a competitive offer package, including:

• Purchase price: Based on market analysis, comparable sales, and your strategy.

• Contingencies: Protecting your earnest money if issues arise, including financing, appraisal, and inspections.

• Earnest money deposit: Shows your commitment (typically 1-3% of the purchase price).

• Preferred closing date: Usually 21-45 days from acceptance, but flexible based on seller needs and your loan type.

Your agent will discuss offer strategies, especially in multiple offer situations, to strengthen your position without overextending your budget.

✅ Timeframe: Offers are prepared and submitted same day or within 24 hours of deciding to proceed. Sellers typically respond within 24-72 hours.

5. Offer Acceptance & Escrow Period

Once your offer is accepted, you enter escrow, a neutral period where:

• Your earnest money is deposited into an escrow account.

• The lender begins their full approval process, ordering an appraisal to confirm value.

• You schedule inspections to evaluate the property condition.

• Seller disclosures and HOA documents are reviewed, ensuring you’re informed about property details, fees, or rules.

• Title searches are conducted to confirm no legal issues with the property’s ownership history.

6. Inspections

Inspections are crucial for protecting your investment. Common inspections include:

• General home inspection: Evaluates roof, plumbing, electrical, HVAC, foundation, and overall safety.

• Pest inspection: Checks for termites, wood rot, or infestation.

• Specialty inspections (if needed): Roof, sewer lateral, chimney, pool/spa, or mold.

After inspections, you may:

• Request repairs from the seller

• Negotiate credits toward closing costs

• Proceed as-is if satisfied

• Or, cancel the contract (within contingency timelines) if major issues arise

✅ Timeframe: Completed within the first 5-10 days of escrow.

7. Appraisal and Underwriting

Your lender orders an appraisal to ensure the home’s value aligns with the purchase price, protecting you and the bank from overpaying. Simultaneously, underwriting reviews your file to issue final loan approval.

If the appraisal comes in low, options include:

• Renegotiating the purchase price with the seller

• Paying the difference out of pocket

• Cancelling the contract (if your offer was contingent on appraisal)

✅ Timeframe: Appraisal is done within 1-2 weeks; underwriting issues final approval shortly after once all conditions are satisfied.

8. Final Walk-Through

A final walk-through is scheduled shortly before closing to:

• Ensure the home is in the agreed-upon condition

• Confirm any negotiated repairs were completed

• Check that fixtures, appliances, and property inclusions remain as outlined in the contract

✅ Timeframe: Conducted 1-5 days before closing day.

9. Closing Day

Closing is when the property officially becomes yours. Within a few days of the close date:

• You’ll sign final loan and title documents (often a 1-2 hour appointment).

• You’ll wire your down payment and closing costs to escrow.

• The lender funds your loan, and the title company records the deed with the county.

Once recording is confirmed, your agent will hand you the keys to your new home!

✅ Timeframe: Signing takes 1-2 hours and usually done 1-3 days before the close date; recording happens when escrow has received everyone's signed documents and funds from the buyer and lender to close which can be 1-3 days after signing. 

What to Expect Emotionally

✔️ Excitement & Stress: Both are normal. It’s a significant financial and life decision.
✔️ Lots of Paperwork: Your agent and lender will guide you through every document, so you’re never left wondering.
✔️ Ups & Downs: You may have offers rejected before an acceptance. Stay resilient and trust the process.
✔️ Support: Your real estate agent is your guide, advocate, and resource from start to finish.

Ready to Start Your Home Buying Journey?

If you’re thinking about buying a home and want a dedicated real estate professional to guide you smoothly through the process, reach out today. Together, we’ll make your dream of homeownership a reality with clarity, confidence, and joy.