The average first-time homebuyer looked at 15 properties and more than half made at least five offers before buying a home.

It’s not easy to buy a home in this real estate market. You’re competing against multiple offers and there aren’t that many homes on the market right now.

It’s also an emotional process because it’s complicated. There are a lot of steps and people to talk to before you even make an offer on the home.

Knowing the homebuying process can take some of the stress out of the situation. We’re helping you out on that front. We took the homebuying process and broke it down into 10 steps.

If you want a home buying guide, keep reading. You’re going to learn the step for buying a home.

1. Make a Plan

This is the time to check in with yourself. Are you really ready to buy a home? Be honest, because buying a home is a massive undertaking.

You’re responsible for maintenance, repairs, and property taxes. It’s a lot different than renting.

If you are ready, then make a plan to save up enough money for a down payment on the home. You might not need 20%, depending on your situation. You could qualify for loans that only ask for 5% down.

Take time to visualize your home. Make a list of everything you want in your new home. Open kitchens, outdoor entertaining spaces, natural light, and a fireplace are on many buyers’ wish lists.

Make your wish list and make a list of the deal-breakers. For instance, a home near a highway could be a deal-breaker for you.

2. Get Your Financials in Order

The daunting part of the home buying process is getting approved for a loan. You have to show lenders that you’re able to handle a mortgage.

Check your credit scores and make sure there aren’t issues or late payments on your report. What’s the best credit score for buying a home?

A credit score of 620 is enough to get a loan. However, if you want to get a loan with good terms, a score above 700 is ideal.

3. Get a Real Estate Agent

A real estate agent makes the homebuying process so much easier. The right agent understands the process, the market conditions, and has excellent negotiation skills.

Ask people in your circle for recommendations and referrals. Interview several agents and choose the one that you feel comfortable with.

4. Lock-in Preapproval

Interest rates change every day. You want to lock in the best interest rate possible. You also want to have an advantage when you shop for homes.

A pre-approval letter from a mortgage company shows you how much you can get a loan for. That gives you a price range to work with.

It also shows home sellers that your offer is worth taking seriously.

5. Shop for Homes

You have everything you need to start shopping for homes. Look online, take virtual tours, and attend open houses.

Your agent will know of homes before they hit the market. There could be an opportunity to make an offer before the home hits the market.

6. Make an Offer

You found a home you’re in love with. Have your agent write up and submit an offer as soon as possible. They’ll guide you through some of the offer terms to make your offer stand out to home sellers.

When you get an offer accepted, you’ll enter into a contract.

7. Schedule Appraisal and Inspection

Lenders want an appraisal to make sure the appraised value is in line with the sales price of the home. If the loan value is more than the appraised value, that could jeopardize the deal.

The inspection is for you to know what the issues are with the home. A regular inspection looks at the structure and plumbing and electrical systems.

8. Renegotiate the Contract

You may have to renegotiate the contract. It depends on the results of the appraisal and inspection. The buyer may agree to make certain repairs or agree to accept a lower sales price if there are issues.

This is where a real estate agent can make a huge difference. They’ll negotiate on your behalf to get the best deal for you.

9. Shop for Insurance Quotes

You might think of insurance after closing on the home. Mortgage lenders require homeowners’ insurance before they close on the loan.

They don’t want there to be a gap between you getting the keys and signing up for insurance. That would take months.

Review your insurance requirements to make sure the structure and contents get covered. Take into account natural disasters like floods.

Shop for insurance online and look for a cheap flood insurance quote to make sure you have full coverage.

10. Get to Closing

The best part happens at the end. This is where you get your keys. It’s also where homebuyers get caught by surprise because there are closing costs to pay.

These are loan origination and administrative fees. Closing costs are usually 3% of the loan amount. They can be as high as 6%. That’s why it’s important to understand the terms of the loan.

Once the loan gets finalized, you sign a lot of documents and get your keys. You’re officially the owner of a new home.

Breaking Down the Homebuying Process

See, the homebuying process isn’t that complicated. Once you learn the basic steps, it’s much easier to understand what’s happening and where you are in the process.

Start the process by knowing if you’re ready to buy a home and get your financials in order. Work with a knowledgeable and experienced real estate agent. They’ll assist you with each step right through closing.

You’ll be thrilled once you move into your new home. Did you get a lot from this article? You’ll love the other articles on the blog. Check them out today!