Guide · Reviewed November 2026
Buying your first home, step by step
General education, not legal, tax or financial advice. Rules vary by state; confirm details with licensed professionals.
- 1
Set a comfortable budget
Look at your monthly costs — not just the price. Include property taxes, insurance, HOA dues, utilities and maintenance. Many buyers aim to keep total housing costs well within what still lets them save.
- 2
Get preapproved by a lender
A preapproval is a lender's written estimate of what they may lend you after reviewing income, assets and credit. Compare at least two or three lenders — rates and fees vary. Preapproval isn't a final loan commitment.
- 3
Understand agency
An agent who represents you as a buyer owes you duties set by your state. Rules changed nationally in 2024: you'll generally sign a written buyer agreement before touring, and it should state how — and how much — your agent is paid. Ask questions until it's clear.
- 4
Choose an agent
Interview two or three. Ask about their experience with first-time buyers in your area, how they communicate, and what they need from you. Check the license yourself with your state's real estate regulator.
- 5
Tour homes and take notes
Keep notes on each home right after you see it: what you loved, what worried you, and questions for your agent. Photos help, but respect sellers' privacy rules.
- 6
Make an offer
Your offer includes price, earnest money, and contingencies — conditions like inspection, financing and appraisal that let you back out or renegotiate. Your agent explains local norms; a real estate attorney can advise on legal questions.
- 7
Inspection & appraisal
A licensed home inspector looks for problems; your lender's appraiser estimates value. Either can lead to renegotiation. Keep track of your contingency deadlines in your contract — they're binding.
- 8
Close
You'll review a Closing Disclosure at least three business days before closing, sign documents, pay closing costs, and get the keys. Never wire money based on an emailed instruction without calling a verified phone number — wire fraud is common.