The journey from "I think I want to buy a house" to holding the keys to your new home typically spans three to six months. Along the way, you'll work with lenders, agents, inspectors, appraisers, title companies, and attorneys—a parade of professionals whose roles might seem confusing at first. Understanding what happens at each stage, and what's expected of you, transforms an intimidating process into a manageable sequence of steps.
This guide walks you through the entire home buying timeline, from initial readiness assessment through moving day. Whether you're a first-time buyer or purchasing your fifth home, having a clear roadmap helps you stay on track and avoid costly surprises.
Step 1: Assess Your Readiness
Before you browse listings or attend open houses, take an honest look at your situation. Buying a home is a significant financial commitment that makes sense only when the timing is right. Rushing in before you're ready leads to stress, regret, and sometimes financial hardship.
Financial stability comes first. Lenders want to see consistent income over the past two years—job-hopping or gaps in employment raise red flags. If you've recently started a new career or are self-employed, you may need to wait until you have a longer track record. Your debt situation matters too: high credit card balances, car payments, and student loans reduce how much you can borrow and may disqualify you entirely if your debt-to-income ratio exceeds lender limits.
Consider your timeline. The conventional wisdom is that you should plan to stay in a home at least five years to recoup buying costs and build meaningful equity. If your job might relocate you, if a major life change is on the horizon, or if you simply aren't sure where you want to be, renting might be the smarter choice for now.
Then there's the money you'll need upfront. Your down payment gets the most attention, but don't overlook closing costs (2-5% of the loan amount), moving expenses, and the cash reserves lenders expect you to have after closing. A good rule of thumb: you'll need 8-15% of the purchase price in cash, though programs with lower down payments can reduce this for qualifying buyers.
Finally, check your credit. Pull your reports from all three bureaus and review them for errors. If your score is below 620, you'll have limited loan options; below 580, you may struggle to qualify at all. If your credit needs work, addressing it now—before you fall in love with a house you can't finance—saves heartache later.
Step 2: Get Pre-Approved for a Mortgage
Once you've confirmed you're ready, mortgage pre-approval is your next step. This isn't optional—it's essential. Pre-approval tells you exactly how much you can borrow, establishes your budget for house hunting, and signals to sellers that you're a serious, qualified buyer. In competitive markets, offers without pre-approval often don't get considered.
During pre-approval, a lender reviews your income, assets, debts, and credit history. You'll submit documentation: pay stubs, tax returns, bank statements, and employment verification. The lender runs the numbers and issues a letter stating the loan amount you qualify for, subject to finding a property and completing underwriting.
Shop at least three lenders to compare rates and fees—this is one of the most cost-effective steps in the entire process. Rates can vary by half a percentage point between lenders, translating to tens of thousands of dollars over the life of your loan. Credit scoring models treat multiple mortgage inquiries within a short window as a single inquiry, so shopping around won't hurt your credit.
Pre-approval typically remains valid for 60-90 days. If your home search extends beyond that, you can usually get it renewed with updated documentation.
Step 3: Find a Real Estate Agent
A good buyer's agent is your guide, advocate, and negotiator throughout the process. Best of all, their services cost you nothing directly—the seller pays agent commissions, typically split between the listing and buyer's agents.
Look for an agent with experience in your target neighborhoods. Local market knowledge—understanding which streets are noisier, which school boundaries matter, what problems certain builders are known for—comes only from working an area extensively. Ask how many buyers they've represented in the past year and request references you can actually call.
Communication style matters more than you might expect. Some agents are proactive, sending listings before you ask; others wait for direction. Some respond instantly to texts; others prefer scheduled calls. Neither is inherently better, but misaligned expectations lead to frustration. Discuss how you'll communicate and how quickly you expect responses before committing.
The best agents understand the financial side of real estate, not just the emotional side. They can help you evaluate whether a property makes sense for your situation, spot potential issues during showings, and negotiate effectively when it's time to make an offer. A great agent earns their commission many times over through the problems they help you avoid.
Step 4: Search for Homes
With financing in place and an agent by your side, the house hunt begins—and this is where many buyers make their first mistake. Overwhelmed by options, they spend months touring homes without a clear sense of what they're looking for. The result is decision fatigue and, often, settling for something that doesn't really fit.
Before your first showing, define your priorities. What features are non-negotiable? This might include number of bedrooms, proximity to work or certain schools, garage space, or a yard for your dog. Be realistic about what your budget can actually buy in your target areas. Your agent can show you what's available at different price points to calibrate your expectations.
Equally important: know what you're willing to compromise on. Perfect homes don't exist, or if they do, they're priced beyond reach. Maybe you'd accept a smaller kitchen for a better location. Maybe the outdated bathroom is tolerable if it means an extra bedroom. Understanding these tradeoffs in advance prevents analysis paralysis later.
As you tour homes, take notes and photos—after a dozen showings, properties blur together. Pay attention to things that can't be changed: location, lot size, floor plan bones. Cosmetic issues like paint colors and dated fixtures are fixable; structural problems and traffic noise are permanent.
Don't rush, but don't overthink either. In hot markets, good properties sell quickly. When you find a home that meets your needs and feels right, be prepared to act decisively.
Step 5: Make an Offer
You've found the one. Now comes the negotiation. Your agent will prepare a written offer that includes the purchase price you're proposing, the earnest money deposit you'll put down (typically 1-3% of the price, showing you're serious), your proposed closing date, and any contingencies—conditions that must be met for the deal to proceed.
The right offer price depends on market conditions, the property's time on market, and comparable sales. Your agent should provide data on what similar homes have sold for recently. In a seller's market, you may need to offer at or above asking price; in a buyer's market, you have more room to negotiate. Read more in our guide to making offers.
Contingencies protect you but also weaken your offer from the seller's perspective. The most common are the inspection contingency (letting you back out or renegotiate if the inspection reveals problems), financing contingency (protecting you if your loan falls through), and appraisal contingency (allowing renegotiation if the property appraises below the purchase price). In competitive situations, buyers sometimes waive contingencies to strengthen their offer—a risky move that should be considered carefully.
After you submit your offer, the seller can accept, reject, or counter. Multiple rounds of counter-offers are common before both parties reach agreement. When you do, you'll sign a purchase agreement and deposit your earnest money, officially putting the property under contract.
Step 6: Complete Due Diligence
The clock starts ticking once your offer is accepted. You typically have 30-45 days before closing, and there's much to accomplish. Your purchase agreement outlines specific deadlines for each milestone—missing them can cost you the deal or your earnest money.
The home inspection comes first, usually within 7-10 days of going under contract. A professional inspector spends two to four hours examining the property's major systems: roof, foundation, electrical, plumbing, HVAC, and more. They'll provide a detailed report noting issues from minor maintenance items to major defects. Review this report carefully with your agent—it's your opportunity to identify problems before they become your problems.
Based on inspection findings, you can negotiate with the seller for repairs, credits toward closing costs, or a price reduction. What's reasonable varies by market and situation. Sellers aren't obligated to fix everything; you'll need to decide which items are worth fighting for and which you'll accept.
While you're handling inspections, your lender is processing your loan. They'll order an appraisal to confirm the property's value supports the loan amount. If the appraisal comes in low, you'll need to renegotiate the price, make up the difference in cash, or potentially walk away. The lender's underwriters will also verify your documentation, confirm your employment, and ensure nothing has changed since pre-approval. Don't open new credit accounts, make large purchases, or change jobs during this period—any of these can derail your financing.
The title company works behind the scenes to ensure clear ownership. They'll search public records for liens, easements, or other issues that could affect your title and prepare title insurance to protect against future claims.
Step 7: Close and Move In
As closing day approaches, you'll receive your Closing Disclosure—a document detailing your final loan terms, monthly payment, and closing costs. Review it carefully and compare it to your original Loan Estimate. You have three days to ask questions before signing.
The day before or morning of closing, you'll do a final walkthrough. This isn't another inspection—it's a quick check to verify the property is in the condition you agreed upon, that any negotiated repairs were completed, and that the sellers have moved out. Bring your purchase agreement's list of included items and confirm everything is there.
Closing itself involves signing a stack of documents—the closing process typically takes one to two hours. You'll sign the mortgage note, deed of trust, and various disclosures. You'll provide a cashier's check or wire transfer for your down payment and closing costs. Once everything is signed and funds are transferred, you'll receive the keys. The home is officially yours.
Now comes the move. Before unpacking, take care of security basics: change the locks (you don't know how many copies of the old keys exist), set up utilities in your name, and update your address with the post office, employer, banks, and subscriptions. If your area offers a homestead exemption for property taxes, file that paperwork promptly—it can save you hundreds annually.
Congratulations—you're a homeowner. The process is behind you. Now you get to make it home.
Stay organized throughout the process. Create a folder for all your documents, keep a calendar of deadlines, and respond to requests from your lender immediately. Delays on your end can push back closing or, worse, cause your rate lock to expire.