Buying a home is one of the biggest financial decisions you'll ever make. This guide breaks down the entire process into manageable steps, so you know exactly what to expect at every stage.
First-Time Buyer?
The Complete Timeline
Save for Your Down Payment
Timeline: 6-24 months before buying
Start building your down payment fund. While you can buy with as little as 3-3.5% down (or 0% with VA/USDA loans), a 20% down payment helps you avoid PMI and get better rates. Set up automatic transfers to a high-yield savings account and track your progress toward your goal.
Check Your Credit & Finances
Timeline: 3-6 months before buying
Review your credit reports from all three bureaus (free at AnnualCreditReport.com). Pay down credit card balances, avoid new credit applications, and fix any errors. Gather financial documents: pay stubs, tax returns, bank statements, and W-2s. Lenders will scrutinize these.
Get Pre-Approved for a Mortgage
Timeline: 2-3 months before house hunting
Meet with 2-3 lenders to compare rates and terms. Get pre-approved (not just pre-qualified) with a full credit check and document verification. This tells you exactly how much you can borrow and shows sellers you're a serious buyer. Pre-approvals typically last 60-90 days.
Find a Real Estate Agent
Timeline: 1-2 months before house hunting
Interview 2-3 local agents who specialize in your target neighborhood. Ask about their experience, recent sales, and communication style. A buyer's agent represents your interests and costs you nothing—they're paid by the seller. Choose someone you trust and feel comfortable with.
Start House Hunting
Timeline: 1-3 months
Create your must-have list vs. nice-to-have list. Tour homes in person (not just online) in different neighborhoods and times of day. Attend open houses, take notes, and photos. Don't rush—you'll know when you find the right one. Stay within your pre-approved budget.
Make an Offer
Timeline: 1-3 days per offer
Your agent will help you determine a competitive offer based on comparable sales, market conditions, and the home's condition. Include contingencies (financing, inspection, appraisal) to protect yourself. Be prepared for negotiation—sellers may counter, accept, or reject your offer.
Get a Home Inspection
Timeline: 7-10 days after offer accepted
Hire a licensed home inspector ($300-500) to examine the property for issues: roof, foundation, HVAC, plumbing, electrical, and more. Attend the inspection to ask questions. Use the report to negotiate repairs or credits from the seller. Major issues might be grounds to walk away.
Secure Your Financing
Timeline: 30-45 days (runs parallel with other steps)
Submit your full mortgage application with all required documents. The lender will order an appraisal ($400-600) to confirm the home's value. Stay in close contact with your loan officer, respond quickly to document requests, and avoid any major financial changes (no new cars, credit cards, or job changes!).
Get a Home Appraisal
Timeline: 1-2 weeks after loan application
The lender's appraiser will assess the home's market value. If it appraises for less than your offer price, you'll need to renegotiate, bring more cash, or walk away. If it appraises at or above your offer, you're good to move forward. This protects both you and the lender.
Final Walkthrough
Timeline: 24 hours before closing
Do a final walkthrough of the property to ensure all agreed-upon repairs were completed and the home is in the expected condition. Check that appliances, fixtures, and systems work. Verify nothing was removed that should stay. This is your last chance to spot issues.
Closing Day!
Timeline: 1-2 hours
Review and sign all closing documents (bring government ID). Your lender will wire funds to the title company. You'll pay closing costs (2-5% of purchase price). Sign the deed, get your keys, and celebrate—you're a homeowner! The title company will record the deed with the county.
You Did It!
Key Documents You'll Need
- ✓Proof of Income: Last 2 years of tax returns, 2 months of pay stubs, W-2s
- ✓Bank Statements: Last 2-3 months for all accounts (checking, savings, investments)
- ✓Employment Verification: Contact info for current employer, letter if self-employed
- ✓Credit Authorization: Permission for lender to pull your credit report
- ✓Government ID: Driver's license or passport for identity verification
- ✓Gift Letter: If receiving down payment help from family, document it properly
Common Mistakes to Avoid
- • Skipping pre-approval: You'll waste time looking at homes you can't afford
- • Making big purchases: No new cars, furniture, or credit cards until after closing
- • Draining savings: Keep 3-6 months of expenses after your down payment and closing costs
- • Ignoring closing costs: Budget 2-5% of purchase price beyond your down payment
- • Skipping inspection: Never waive inspection unless you're experienced and it's strategic
Typical Timeline Overview
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