Buying a home can feel overwhelming, especially if it's your first purchase. Breaking the process into clear steps can help you stay organized and move forward with confidence.
This guide walks through the typical home buying process, from preparing your finances to receiving the keys to your new home.
Step 1: Determine Your Budget
Before you start searching for homes, review your financial situation and estimate how much you can comfortably afford.
Consider:
Your monthly income
Existing debts
Down payment savings
Estimated property taxes and insurance
Closing costs
Using a mortgage calculator can help you estimate a monthly payment range that fits your budget.
Step 2: Get Pre-Qualified or Pre-Approved
Connecting with a lender early can help you understand your buying power.
Pre-Qualification
Estimate
A quick estimate of how much you may be able to borrow based on information you provide.
Pre-Approval
Stronger
A more detailed review of your finances that typically carries more weight with sellers.
Many buyers choose to work with an FSBO.com Loan Officer to compare loan options and complete the pre-approval process.
Step 3: Search for Homes
Once you know your budget, begin searching for properties on FSBO.com.
Use filters such as:
Price range
Bedrooms and bathrooms
Property type
Square footage
Location
Save your favorite listings and compare properties that meet your needs.
Step 4: Tour Homes
Schedule showings for homes you're seriously considering.
While touring, pay attention to:
Property condition
Neighborhood
Layout and functionality
Storage space
Potential repair or renovation needs
Take notes and photos (if permitted) to help compare homes later.
Step 5: Make an Offer
When you find the right home, submit an offer to the seller.
Your offer may include:
Purchase price
Earnest money deposit
Financing terms
Inspection contingency
Appraisal contingency
Proposed closing date
If you're working with an agent, they can help prepare and negotiate the offer.
Step 6: Negotiate Terms
The seller may:
Accept your offer
Reject your offer
Submit a counteroffer
Negotiations may involve price, repairs, closing costs, appliances, or other terms of the agreement.
Step 7: Complete the Home Inspection
After the offer is accepted, most buyers schedule a home inspection.
The inspector evaluates the property's condition and identifies potential issues such as:
Roof damage
Plumbing problems
Electrical concerns
HVAC issues
Structural defects
Based on the inspection results, you may negotiate repairs or credits with the seller.
Step 8: Finalize Your Mortgage
Your lender will continue processing your loan by:
Verifying income and assets
Reviewing the appraisal
Completing underwriting
Preparing final loan documents
Respond promptly to any requests for additional documentation to avoid delays.
Step 9: Review Closing Documents
Before closing, you'll receive a Closing Disclosure that outlines:
Final loan terms
Interest rate
Monthly payment
Closing costs
Cash needed to close
Review the document carefully and ask questions if anything is unclear.
Step 10: Close on Your Home
At closing, you'll:
Sign the final documents
Provide any required funds
Complete the loan paperwork
Finalize the transfer of ownership
Once the transaction is recorded, you'll receive the keys to your new home.
After Closing
After moving in, remember to:
Set up utilities
Change your address
Review your homeowners insurance policy
Store your closing documents safely
Create a home maintenance plan
Quick Home Buying Checklist
Determine your budget
Get pre-qualified or pre-approved
Search for homes
Tour properties
Make an offer
Negotiate terms
Complete inspections
Finalize your mortgage
Review closing documents
Close and receive your keys
Frequently Asked Questions
How long does the home buying process take?
The timeline varies, but many purchases take 30–60 days from accepted offer to closing.
Do I need a real estate agent?
No. You can buy a home directly from a seller, work with your own agent, or connect with an FSBO.com Partner Agent if you would like professional representation.
How much money do I need upfront?
You'll typically need funds for your down payment, earnest money deposit, and closing costs.
What is earnest money?
Earnest money is a deposit that shows the seller you're serious about purchasing the home. The amount and terms are negotiated in the purchase agreement.
Should I get pre-approved before shopping?
Yes. Pre-approval helps you understand your budget and can make your offer more attractive to sellers.