Are you ready to buy a home but not sure where to start? Or you’ve been thinking about it and you’re not quite sure yet? 

Purchasing a home is one of the biggest financial decisions you’ll make. Having a solid plan in place and being informed makes the process smoother and less stressful.  

Whether you’re a first-time homebuyer or looking for your next perfect-for-you home, this blog will guide you through every step of the process —from deciding if now is the right time to buy, to closing on your new home. 

I recommend grabbing a notebook and writing down your answers to these questions – Writing down your goals is the first step to turning them into a reality and making sense of things! 

Step 1: Assess Your Situation  

Before jumping into the homebuying process, it’s important to understand if now is the right time for you to buy a home. 

Evaluate Your Finances 

Do you have a stable income and job security? What are you currently paying in rent? What monthly mortgage payment are you comfortable staying around?  

Know Where Your Credit Score is Sitting 

Your credit score will determine what you qualify for.  

You can pull your credit report and score for free at  annualcreditreport.com and creditscore.com. 

Are you looking to lay down roots? Or build a portfolio?  

The type of home that’s right for you depends on what your short-term and long-term goals are.  

 

Do you want to start with a simple home that you can eventually rent out?  

Or a single family home to put your love and energy into and transform over the years?  

A townhouse in a hip neighborhood?  

Consider your future plans, such as career moves, family growth, or any lifestyle shifts. 

Market Conditions 

Research whether it’s a buyer’s or seller’s market in your desired area.  

I put together a monthly market report that can be found here. (coming soon!)

Your realtor will also know this information.  

In a buyer’s market, you often have more negotiating power as homes tend to sit on the market a bit longer. 

In a seller’s market, or a hot market, there’s less inventory to choose from and more competition. 

Down Payment  

Do you have money for a down payment currently saved? A lot of people think you need 20% down to purchase a home. This is simply not true – you can put as little as 3% down on a house, or see if you qualify for any down payment assistance programs in your area. 

3% of a $400,000 house is $12,000. 

Or nothing at all with a VA loan or a down payment assistance program. 

I put together a handy down payment table here that you can play with. Copy the file into Google Sheets or Excel. Play around with the numbers! 

Step 2: Get Your Finances in Order 

Buying a home involves more than just a down payment. There’s closing costs, routine maintenance, home projects, taxes, and utility bills to keep in mind.

Make sure you thoroughly understand your financial situation. 

Stick to a Budget 

For a lot of people, ‘budget’ is a scary word. However, if you want to buy a home, you’re going to need one.

PUT IT ON PAPER!  

 

Copy this simple budget template in your notebook or import it into Google Sheets or Excel! 

Establish a consistent routine where you check in on your budget and update any variables. 

Prepare for Closing Costs 

In addition to your down payment, expect to pay an additional 2-5% of the home’s purchase price to cover closing costs. 

Closing costs include things like:  

Lender Fees 

✔ Loan Origination Fee – Covers processing & underwriting your mortgage 

✔ Application Fee – Charged by the lender to process your loan application 

✔ Credit Report Fee – Covers the cost of pulling your credit report 

✔ Discount Points – Optional fee to lower your mortgage interest rate 

Property-Related Costs 

✔ Home Appraisal – Required by the lender to determine home value 

✔ Home Inspection – Ensures the property is in good condition (buyer’s expense). This is often paid upfront. 

✔ Survey Fee – Confirms property boundaries (sometimes required or recommended) 

✔ HOA Fees – Depends on whether or not the home is part of a homeowners association 

Title & Legal Fees 

✔ Title Search – Ensures there are no liens or ownership disputes 

✔ Title Insurance – Protects against claims on the property’s title 

✔ Attorney Fees – If required by state law or for legal review of documents 

Prepaid Costs & Escrow 

✔ Property Taxes – Payment of property taxes  

✔ Homeowners Insurance – Typically 1 year of coverage paid upfront 

✔ Mortgage Insurance (if applicable) – Required if your down payment is <20% 

Government Fees 

✔ Recording Fees – Covers the cost of legally recording your home purchase 

✔ Transfer Taxes – State or local tax on property transfers (varies by location) 

Understand Loan Options  

Research different types of loans, such as conventional, FHA, VA, and USDA.  

Loan Type	Who It’s For	Minimum Credit Score	Minimum Down Payment
Conventional	Buyers with good credit & stable income	620+	3%
FHA	First-time buyers or those with lower credit	580+ (3.5% down) / 500-579 (10% down)	3.5%
VA	Active-duty military, veterans, eligible spouses	No minimum (varies by lender)	0%
USDA	Low-to-moderate income buyers in rural areas	640	0%

At this point, if everything is making sense on paper, it might make sense to get pre-approved.

A lender will be able to help you assess what your current purchase power looks like. 

Step 3: Start House Hunting 

Once your finances are in order and you’re pre-approved, it’s time for the fun part – finding your dream home! 

List Your Must-Haves vs. Nice-to-Haves 

Grab your notebook and identify the following!

• 5 ESSENTIALS 

• 5 DESIRABLES 

• 3 DEALBREAKERS 

Research Neighborhoods 

Get an idea of the area you want to be in.  

Consider factors like schools, commute time, and community amenities. 

Partner with a Realtor 

An experienced agent streamlines the homebuying process and negotiates on your behalf. 

Ask friends and family who they might recommend. 

If you’re in the Portland area and looking for a cool & professional realtor (cough me cough), get in touch! 

Look at Homes 

With your list of essentials, desirables, and dealbreakers top of mind, you’ll now start seeing homes in person.

Remember, the house doesn’t have to be perfect – it only has to be perfect-for-you.  

Step 4: Make an Offer -> Offer Accepted 

When you’ve found THE ONE, and trust me, you’ll know – it’s now time to make an offer. 

Make an Offer 

Let your agent know you’d like to make an offer and they’ll work alongside you to craft an offer with your goals in mind. 

Also, be sure to let your preferred lender know you’re making an offer – they’ll provide you with a purchase price specific pre-approval letter to submit alongside your home purchase offer. 

Offer Accepted  

Once your offer is accepted (you may have had to do some negotiation along the way), you’ll need to deposit earnest money right away – typically within 3 business days following mutual acceptance. 

Earnest money, which counts towards your down payment, shows sellers you’re serious about purchasing the home. It’s kind of like a security deposit. Earnest money is usually around 1-3% of the purchase price.

Step 5: Conduct Due Diligence & Work With Your Lender 

On the road to close, there’s some work involved – including hiring a professional inspector and working closely with your lender to avoid any road bumps. 

This is your time to learn all about the home and understand what you’re getting yourself into.

Schedule a Home Inspection 

A home inspection is a crucial step in the homebuying process and is designed to uncover potential issues with a property before finalizing the purchase.  

A licensed home inspector will conduct a thorough evaluation of the home’s structure, systems, and components, including the foundation, roof, plumbing, electrical, HVAC, and more.  

Their goal is to identify any safety concerns, necessary repairs, or hidden defects that could impact the home’s value or livability.  

With a detailed inspection report in hand, homebuyers can make informed decisions, negotiate repairs with the seller, and ideally avoid costly surprises after moving in.  

Order a Home Appraisal 

A home appraisal is ordered by your lender for the purpose of determining the fair market value of a property. A home appraisal ensures that the home’s price aligns with its actual worth based on factors like location, condition, size, and recent sales of similar homes in the area.  

Lenders require an appraisal to confirm that the home is worth the amount being borrowed which protects both the buyer and the lender from overpaying.  

If the appraisal comes in lower than the agreed purchase price, buyers may need to renegotiate the price, increase their down payment, or appeal the valuation.  

Ultimately, a home appraisal helps maintain a fair and balanced housing market while safeguarding the financial interests of all parties involved. 

Work Alongside Your Lender  

While you work towards closing on your new home, you’ll be in frequent contact with your lender – be ready to provide any requested documents. 

Be sure not to make any large purchases or change jobs. 

DO NOT BUY A CAR, FURNITURE, OR LAVISHLY TREAT YO’SELF. 

Wait until you close.

Please.

Step 6: Closing on Your New Home 

You’re almost there! The final steps to purchasing a home involve a final walkthrough, paperwork, and the official transfer of ownership. 

Do a Final Walkthrough  

Conducting a final walkthrough ensures that all agreed-upon repairs have been completed and the home is in expected condition. 

Prepare Necessary Funds 

It’s getting exciting now! Have your down payment and closing costs ready to transfer! 

Sign the Paperwork 

You’ll likely sign paperwork with your local title company. Although, if you’re buying out of state, a notary can come to you.  

Get Your Keys & Celebrate 🎉 

You did it! Heckkkkkkkkkkk yeah!

It’s time to celebrate this huge accomplishment and start making memories in your new home 🙂

Final Thoughts 

Buying a home is a major milestone and deserves to be celebrated.  

It’s also a goal that shouldn’t be dismissed as unattainable. 

 

 

Lots of younger folks today feel they will never be in a position to buy a home, but with the right planning and research, they may be closer than they think.  

I bought my first home at 21, and I’m on a mission to educate and help people reach their goals. 

I hope this article came in handy. Be sure to arm yourself with the right information when it comes time to find the perfect home for you. 

Let me know if you want to see any content in particular!