From Pre-Approval to Keys in Hand: The Ultimate Step-by-Step Guide to Buying Your First Home
Are you dreaming of your first set of keys? Whether you’re buying your forever home or starting your investment journey, the homebuying process can feel overwhelming—but it doesn’t have to be. This step-by-step guide breaks it all down—from pre-approval to closing—so you can move forward with clarity, confidence, and financial smarts.
🔑 Step 1: Get Financially Prepared
Before house-hunting, take a look at your credit score, debt, income, and savings.
✅ Check your credit report (free at AnnualCreditReport.com)
✅ Pay down debt and avoid large purchases
✅ Save for a down payment (typically 3%–20% of the home’s price)
✅ Create an emergency fund and moving budget
💰 Typical Costs to Expect:
Down Payment 3%–20% of purchase price
Closing Costs 2%–5% of purchase price
Home Inspection $300–$600
Appraisal $400–$700
Earnest Money Deposit 1%–2% of purchase price
💳 Step 2: Get Pre-Approved for a Mortgage
Pre-approval shows sellers you’re serious—and gives you a realistic price range.
You’ll need:
Pay stubs & W2s or 1099s
Tax returns
Bank statements
ID & Social Security number
📝 Tip: Compare at least 3 lenders! (See our lender comparison at the end)
🔍 Step 3: Choose the Right Real Estate Agent
Look for:
Experience with first-time buyers or investors
Knowledge of local market
Strong negotiator
Great communication
💡 Pro Tip: Ask for referrals and check online reviews.
🏘️ Step 4: Start House Hunting
Now the fun part begins!
Create a list:
Must-haves (bedrooms, location, garage)
Nice-to-haves (pool, finished basement)
✨ Use this FREE tool: Realtor.com App
⚠️ Don’t forget:
Drive through neighborhoods at different times
Attend open houses
Take notes and photos during tours
🔎 Step 5: Make an Offer & Negotiate
Your agent will help you:
Submit a competitive offer
Include contingencies (inspection, financing, appraisal)
Negotiate if the seller counters
📑 Contingencies protect you, especially if something is wrong with the home or if financing falls through.
🏠 Step 6: Home Inspection & Appraisal
Home Inspection (paid by buyer):
Reveals hidden issues: roof, foundation, plumbing
You can renegotiate or walk away based on the results
Appraisal (required by lender):
Confirms the home’s value before loan approval
⚠️ If appraisal comes in low, your lender won’t cover the full offer price—this can delay or derail the deal.
📋 Step 7: Final Loan Approval
Once the appraisal clears, your file goes into underwriting.
✅ Don’t open new lines of credit or change jobs
✅ Review your Loan Estimate and Closing Disclosure
🎉 Step 8: Closing Day!
You’ll:
Sign final documents
Pay closing costs
Receive the keys to your new home 🎉
Closing Costs Include:
Lender fees
Title insurance
Recording fees
Transfer taxes
Prepaid taxes and insurance
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🧾 Printable Home Checklist Budget & to-do tracker: Download on Etsy or upload your own
📋 Lender Comparison
Rocket Mortgage (pre-approval link)
LendingTree (compare rates)
SoFi (first-time buyer loans)
Quicken Loans
Chime or Current (banking options for home saving)
📣 Call to Action
🏡 Ready to start your homebuying journey?
Download your free First-Time Home Buyer Checklist, explore more guides, and don’t forget to subscribe for weekly real estate and money tips that bring you closer to your dream home!
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