How to Buy Your First Home: A Step-by-Step Guide
Every step of buying your first home, in order — from setting a budget and getting pre-approved to making an offer and closing the deal.
Buying your first home doesn't have to be confusing. Follow these steps in order and you'll always know what to do next — and which Lotum AI expert can help at each stage.
- 1
Set a realistic budget
Add up your income, debts, and savings to find a comfortable monthly payment — including taxes, insurance, and any mortgage insurance. Aim to keep total housing costs near 28% of gross income.
- 2
Get pre-approved
Gather income, asset, and debt documents and get a lender's pre-approval. This sets your price range and shows sellers you're serious.
- 3
Define your must-haves
List the things you can't change — location, bedrooms, commute — separately from cosmetic preferences. This keeps your search focused.
- 4
Tour homes and compare
Visit candidates and judge each against recent comparable sales. Note condition, layout, and how each fits your must-haves.
- 5
Make a competitive offer
Shape your offer around price and terms: a strong pre-approval, a sensible timeline, and protective but clean contingencies.
- 6
Complete inspection and appraisal
Order a home inspection and let the lender's appraisal proceed. Use the results to negotiate repairs or credits if needed.
- 7
Close the deal
Review your closing documents, complete final loan approval, do a final walkthrough, and sign. Then collect your keys.
Frequently asked
How long does buying a first home take?
From accepted offer to closing is usually 30 to 45 days. The home search itself varies widely depending on your market and criteria.
What's the very first step?
Setting a realistic budget. Knowing your comfortable monthly payment shapes every decision that follows, including pre-approval.
Keep reading
How to Get Mortgage-Ready in 30 Days
A focused, step-by-step plan to strengthen your mortgage application — organizing documents, understanding your debt-to-income ratio, and securing pre-approval.
How to Sell Your Home: A Step-by-Step Guide
A complete walkthrough for selling your home — pricing with comps, prepping and marketing the listing, handling offers, and getting to a clean close.
Free template: Residential Purchase Offer Terms Sheet
A fill-in purchase offer terms sheet — price, earnest money, contingencies, and closing timeline — to organize your offer before it goes on your state's official form.
Still have questions? Just ask.
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