“Owning a home is a keystone of wealth — both financial affluence and emotional security.” — Suze Orman

What Are The Steps To Buy Your First Home?: Buying your first home is a major life milestone and one that can feel overwhelming without a clear path. From understanding your budgeting funds to handing over the keys at closing, each step of the process carries both responsibility and reward. Fortunately, with the right strategy and guidance, you can navigate this journey with confidence.

Let’s break down the essential steps every first-time homebuyer should know.

Understand Your Budget And Get Pre-Approved

Before you even start browsing listings, you need to determine how much house you can afford. Financial experts typically recommend that your total housing payment (including mortgage, taxes, insurance) should not exceed 28% of your gross monthly income.

According to Investopedia, most lenders follow the 28/36 rule, where 36% is the upper limit for all debts combined. Once you assess your income, credit score, and existing debts, the next crucial step is getting pre-approved for a mortgage. Pre-approval:

• Shows sellers you’re serious
  
• Clarifies your borrowing limit
  
• Gives you a competitive edge in a hot market
  

🏡 Stat Alert: As of 2024, the average first-time homebuyer in the U.S. has a credit score of 746, and they typically put 6–7% down, according to the National Association of Realtors.

Find A Trusted Real Estate Agent

Your real estate agent will be your guide, negotiator, and support system throughout the process. A good agent not only shows you homes but also helps you understand market conditions, negotiate pricing, and handle paperwork.

Adissia emphasizes interviewing multiple agents before making a decision. Look for:

• Local market expertise
  
• Positive reviews and referrals
  
• Strong communication skills
  
• Experience working with first-time buyers
  

Remember, the seller pays the commission, so there’s no out-of-pocket cost for you to use an agent.

Make An Offer And Close The Deal

Once you’ve found your dream home, it’s time to make an offer. Your agent will help you assess comparable sales and determine an appropriate price. According to Raleigh Realty, it’s also wise to:

• Include contingencies (inspection, financing)
  
• Stay within budget during negotiations
  
• Be ready with earnest money (1–3% of home price)
  

After your offer is accepted:

• Schedule a home inspection to uncover any issues
  
• Finalize your mortgage approval
  
• Review and sign closing documents
  

At closing, you’ll pay the down payment and closing costs (typically 2–5% of the home price). Once complete, the keys are yours!

Final Thoughts

Buying your first home is exciting but it can also be stressful without the right support. Start by knowing your numbers, working with a trustworthy agent, and staying organized. With preparation and patience, you’ll unlock the door to your first home—and your future.

Frequently Asked Questions