Buying and selling, explained in plain English. The steps below apply in all 50 states, adapted from the Consumer Financial Protection Bureau’s homebuying process and REALTOR® best practices, with local help one click away.
Eight steps that apply in every U.S. state. Open each one for what happens, what to do, and what to watch out for.
Lenders look at your credit history, income, and debts. Months before you shop, pull your credit reports and fix anything that’s wrong. Errors are common and disputes take time.
Don’t open or close credit accounts while preparing to buy. New inquiries and changed balances can drop your score right when it matters most.
A useful starting point: keep the full housing payment (principal, interest, taxes, insurance, HOA) under about 28% of gross monthly income, and all debts under 36%.
Being approved for more than you can comfortably pay. Lenders approve to their limits, not your lifestyle. “House poor” is a real outcome.
A preapproval is a lender’s written estimate of what they’ll lend you, based on verified income, assets, and credit. Most sellers expect one attached to any offer.
Hard credit pulls from many lenders spread over months. Cluster your applications within a short window so they count as one inquiry.
A buyer’s agent tours homes with you, reads the local market, writes offers, and negotiates. Since 2024, you’ll sign a written buyer agreement before touring homes that spells out services and compensation.
Signing a long exclusive agreement with the first agent you meet. Start with a short term until you know the fit is right.
Write down your non-negotiables (commute, bedrooms, school zone) separately from nice-to-haves. Homes are compromises. Decide yours before emotions run the process.
Falling for staging. You’re buying the floor plan, systems, roof, and location, not the furniture.
Your agent runs comparable sales to anchor the price, then structures terms: earnest money (usually 1–3%), contingencies, and timing that fits the seller.
Bidding-war adrenaline. Decide the maximum you’d be happy with the morning after, then stop there.
Under contract, three things run in parallel: a professional inspection, the lender’s appraisal, and your final loan shopping using standardized Loan Estimate forms.
Making big purchases or job changes before closing. Lenders re-verify credit and employment days before you sign.
Your Closing Disclosure arrives at least three business days before closing. Compare it to your Loan Estimate (the forms match line for line) and question anything that moved.
Wire fraud is rampant in real estate. Always confirm wiring instructions by calling the title company at a number you look up yourself, never one from an email.
The same rules apply in every state. Master these and you can read any lender’s offer with confidence.
Conventional from 3% down · FHA 3.5% down with flexible credit · VA $0 down for eligible military · USDA $0 down in eligible rural areas. Ask lenders which you qualify for.
A fixed rate never changes: predictable for as long as you keep the loan. An ARM starts lower but can rise after the intro period. If you consider one, know exactly how high the payment could go.
The interest rate is the cost of borrowing; APR adds most fees, so it reflects the true annual cost. When comparing lenders, line up APRs. A low rate with high fees can cost more overall.
Put less than 20% down on a conventional loan and you’ll pay private mortgage insurance. You can request removal at 20% equity, and it must drop off at 22%. It’s a cost, not a reason to wait years to buy.
Discount points = pay more upfront for a lower rate. Lender credits = the reverse. Do the break-even math: upfront cost ÷ monthly savings = months to recoup. Moving sooner than that? Skip the points.
Get official Loan Estimates from 3+ lenders within a two-week window; credit scoring treats them as one inquiry. The standardized form makes offers easy to compare line by line, and shopping routinely saves thousands.
Most first-time mistakes are avoidable. These habits separate smooth closings from stressful ones.
Across town or across the country, the same eight-week countdown keeps a move calm.
A local Find a Home agent can tour homes for you by video, explain neighborhoods, and time your purchase to your move date, at no cost to you as a buyer.
FIND AN AGENTA rough estimate using the 28/36 rule lenders start from: keep housing under about 28% of gross income and all debt under about 36%. Educational only. A preapproval is the real answer.
Educational content adapted from the Consumer Financial Protection Bureau’s Buying a House resources and National Association of REALTORS® consumer guidance, reviewed July 2026. This is general information for every U.S. state, not financial, legal, or tax advice. Free, HUD-approved housing counselors are available at consumerfinance.gov.