Your first key
Buying a Home, Step by Step
From budgeting to closing day, a clear path through the biggest purchase most people ever make.
1. Know your budget
Lenders generally prefer total monthly debt under 36–43% of gross income. Don't forget taxes, insurance, HOA fees and maintenance.
2. Get pre-approved
A pre-approval letter shows sellers you're serious and tells you exactly what you can borrow. Compare at least three lenders.
3. Choose your loan
Each loan type fits a different buyer.
- Conventional — as little as 3% down; PMI under 20%
- FHA — flexible credit requirements, 3.5% down
- VA — for eligible veterans, often 0% down
- USDA — 0% down in qualifying rural areas
4. Shop and make an offer
Work with a buyer's agent, tour widely, and research comparable sales before making an offer with sensible contingencies.
5. Inspect and appraise
Never skip the inspection. Pay attention to roof, foundation, HVAC, plumbing and electrical findings — and negotiate repairs or credits.
6. Close
Expect closing costs of roughly 2–5% of the purchase price. Do a final walkthrough and review every document before signing.