Buying a home, step by step

Buying a home is a series of decisions, each with its own vocabulary: how much you can afford, whether a price is fair, what to put in an offer and what to check before you sign. Most expensive mistakes happen when a step is rushed or its numbers are taken on trust.

Start with the beginner path below. Each step links to the explanation, the calculator and the deeper guide for that decision, so you can stop at the level of detail you need and come back later for the rest.

Your learning path

Work through the steps in order, or choose a level to see only the steps for where you are.

  1. STEP 1Beginner

    Set a budget you can live with

    Your comfortable payment, not the largest loan you qualify for, should set your price range.

  2. STEP 2Beginner

    Get pre-approved

    A pre-approval shows sellers you can close and tells you which loan terms to expect.

  3. STEP 3Beginner

    Judge whether a price is fair

    Comparable sales, not the asking price, tell you what a home is worth.

  4. STEP 4Intermediate

    Make an offer

    Price, deposit, contingencies and timing all shape whether an offer wins - and what risk you carry.

  5. STEP 5Intermediate

    Inspect and appraise

    The inspection protects you from the house; the appraisal protects the lender - and can leave you with a gap to cover.

  6. STEP 6Intermediate

    Close

    Know your cash to close and the milestones before signing so nothing surprises you on the day.

Important terminology

The terms you will meet on this path, from the essentials to the specialist vocabulary.

All buying terms in the glossary →

Featured guides

Compare related concepts

Calculators for this path

Common questions

More buying questions →

Advanced resources

For when you want the full detail - formulas, methodology and professional measures.

Apply it to a property

Paid analyses that work through these steps for a specific address.

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