Home Buying, Simplified: 5 Steps with Helpful Resources

Explore your mortgage options

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We teamed up with Rocket Mortgage to help you get house-hunting sooner. Answer a few questions and an agent will reach out to discuss your options.

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What kind of loan are you interested in?

What to expect

Tell us what you need and a representative from Rocket Mortgage will give you a call. You’ll have support at every step.

What kind of property do you want to purchase? What kind of property do you own?

Why we’re asking

Rocket Mortgage® can provide a more accurate rate estimate if they know what kind of property you’re interested in.

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How do you use your property? How would you use this property?

Why we’re asking

Having a little more information upfront helps Rocket Mortgage® provide a personalized rate faster.

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When are you planning to buy?

Still House Hunting?

Hope you find your dream home soon! In the meantime, it’s never too early to know your rate.

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Are you a first-time home buyer?

It’s all good:

Whether it’s your first – or second property – Rocket Mortgage® can provide you with a rate estimate.

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Do you have a second mortgage?

It’s all good

If you have a second mortgage, it’s no problem. Letting us know helps to customize your rate.

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What is your credit score?

Don’t know your score?

Don’t sweat it! Make your best guess. Credit scores range from 300 (low) to 850 (excellent).

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Tell us a bit more about you

What happens next?

A representative from Rocket Mortgage® will be in touch to discuss your commitment-free, personalized rate. Then you can decide whether you’d like to lock it in!

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Enter your contact info so Rocket Mortgage® can get in touch!

By providing your contact information and clicking the "Agree & Send Information" button below, you agree to our Terms of Use and Privacy Policy. You also expressly consent by electronic signature to receive telephonic sales, promotional, marketing and other calls and text messages, including any calls and messages sent by any automated system or other means for the selection or dialing of telephone numbers, or using an artificial or prerecorded voice message when a connection is completed, from Rocket Mortgage, its Family of Companies, our partner companies and our marketing partners at the telephone number you have provided, even if that telephone number is on a corporate, state, or national do-not-call list or registry. Your consent and agreement to receive such calls or text messages is not a condition of purchasing any property, goods or services from us, our Family of Companies or any of our partners.

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Buying a home can be overwhelming, especially for first-time buyers. That’s where we come in.

We’ve broken down the process into five straightforward steps, including resources to help you complete each one. 

As the adage goes, “How do you climb Mt. Everest? One step at a time.”

1. Organize Your Finances

Your first order of business should be to get your finances in order. Getting organized will give you an idea of how much you need to save and what house price range to target. It’ll also make it easier to work with your mortgage lender when you’re ready.

Build your credit

If you want to buy a house, start thinking about your credit score. The higher your credit score, the more favorable terms you’ll likely receive from mortgage lenders. The reason is that, in the eyes of the lender, a better score makes you more likely to repay the loan on time.

Learn ways to improve your credit score.

Save for a down payment

You don’t need 20% down to buy a home. But the larger your down payment, the less money you’ll have to borrow from a lender. This translates to lower monthly mortgage payments, paying less interest over the life of the loan and building equity faster.

Find out how much down payment you really need.

Make a budget and a plan for debt

Saving up for a down payment can seem overwhelming, especially if you’re starting from scratch. That’s okay. We advise starting simple, making a budget and sticking to it. If you can do that, time will become your friend – instead of feeling like an enemy – as your savings grow each month.

Read about how to make a budget.

Additional resources

Calculators

Estimate your monthly mortgage payment and get recommendations for savings goals.

Your debt-to-income (DTI) ratio will give you an idea of how financially healthy you are. Improving your DTI ratio will improve your chances of being approved for a mortgage and could influence the terms you’re offered.

This will give you an idea of how far your salary will take you in different places where you’re considering purchasing a home.

2. Find a Real Estate Agent

Partnering with the right real estate agent can be your secret weapon during this process. A good agent can suggest mortgage lenders, help you find a home and aid in negotiations. And that’s just the tip of the iceberg.

Take the time to find the right person and lean into their expertise. It’s a real-life easy button.

3. Get Preapproved for a Mortgage

“Mortgage” is a fancy way to say home loan. Because home loans are so big – often hundreds of thousands of dollars – lenders want to ensure you’re financially able to afford the loan. 

If this step intimidates you, you’re not alone. But we’re here to walk you through it.

Explore your mortgage options

Answer some basic questions and an agent will be in touch soon.

What do you want to do?
Learn more about this form
What kind of property do you want to purchase? What kind of property do you own?
How do you use your property? How would you use this property?
When are you planning to buy? It’s okay if you haven’t found a property yet!
Are you a first-time home buyer?
Do you have a second mortgage?
What is your credit score?
Determining Your Credit Score
  1. Your credit score is a three-digit number that’s used to predict how likely it is you’ll pay back money you borrowed.
  2. The score generally ranges from 300 (low) to 850 (excellent). It’s calculated by looking at your previous credit history.
  3. You can check your credit report to find the number or use a free credit tool. You can also plug in your best guess.

Tell us a bit more about you

Enter your contact info so Rocket Mortgage® can get in touch!

By providing your contact information and clicking the “Agree & Send Information” button below, you agree to our Terms of Use and Privacy Policy. You also expressly consent by electronic signature to receive telephonic sales, promotional, marketing and other calls and text messages, including any calls and messages sent by any automated system or other means for the selection or dialing of telephone numbers, or using an artificial or prerecorded voice message when a connection is completed, from Rocket Mortgage, its Family of Companies, our partner companies and our marketing partners at the telephone number you have provided, even if that telephone number is on a corporate, state, or national do-not-call list or registry. Your consent and agreement to receive such calls or text messages is not a condition of purchasing any property, goods or services from us, our Family of Companies or any of our partners.

Your information has been sent!

A Rocket Mortgage® expert will reach out soon to discuss your options.

Your information has been sent!

A Rocket Mortgage® expert will reach out soon to discuss your options.

In the meantime…
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Choose your mortgage type

There are multiple types of mortgages. These loans have different requirements and perks. Take the time to research the most common ones.

We recommend doing some research before shopping for lenders because not all lenders offer all mortgage types.

Shop mortgage lenders

Lenders offer different products and terms, including different types of mortgages. Different lenders may also have unique eligibility requirements and lending criteria. 

Shopping around will also give you a better understanding of the mortgage market so that you can make the best decision for your future.

Apply for preapproval

Once you’ve decided on a lender, you’re ready to apply for preapproval. This will involve providing documentation, like pay stubs, tax returns and more. It’s important to stay in close communication with your lender during this process and provide everything they ask for in a timely manner.

Getting preapproved isn’t required, but it’s highly recommended. It’ll make your offer stronger, give you a more concrete idea of what you can afford and accelerate the underwriting process.

Discover more about the preapproval process.

FAQs about getting preapproved

Is it better to get prequalified or preapproved?

Getting preapproved is stronger than being prequalified because your lender will actually review documentation and pull your credit score.

Do you really need preapproval?

Technically, no. But practically, yes. Many listing agents won’t even entertain offers unless you’re preapproved. Also, you’ll eventually need to provide all the same information to your lender to secure a mortgage, so you might as well get a head start.

How long should it take to get preapproved?

This will vary from lender to lender, but it can be done quickly – usually within 1 or 2 business days.

Do preapprovals affect credit score?

A hard credit pull can cause a small dip in the short term, but it won’t have an impact on your credit in the long term. Any lender will eventually need to do a hard credit pull to issue the mortgage. You can learn more about how preapproval impacts credit here.

4. Go House Hunting

Now you’re ready for the fun part! Work with your real estate agent to find homes within your price range. 

Make an offer

If you successfully follow this list, you could be preapproved and have a real estate agent by the time you start looking for houses. 

This means you could put in an offer on a home the same day you find one you like. Lean on your real estate agent’s expertise, and check out our advice for making a competitive offer.

5. Close on Your New Home

If the seller accepts your offer, congratulations! You’re ready to close. The closing process refers to the time between when an offer is accepted and when the buyer gets the keys and the seller gets their money. 

A few steps need to happen to protect all parties involved in this transaction.

What Happens Once an Offer Gets Accepted

A home appraisal is when a third-party professional evaluates the home’s market value. Because the home serves as collateral for the loan, lenders usually require this step to make sure the home is worth the money they’re lending the buyer.

This is the buyer’s opportunity to have an inspector come and look over the home. They’ll point out any hidden defects or issues the buyer should be aware of. This also provides another opportunity for the buyer to negotiate with the seller based on the inspection results.

After the offer is accepted, your mortgage application will need to go through underwriting. This is the process where an underwriter combs through all your financial records to either approve or deny your loan application. If they approve your application, you’re clear to close.

Usually within 24 hours of the official closing date, or when you’ll take ownership of the property, this is your final chance to review the property. Make sure any negotiated repairs were made and that the seller has completely moved out.

You’ll need to budget for closing costs, which include things like the title search fee and attorney fees. These funds are in addition to your down payment and are usually due at closing, the same day you get the keys.

Final Thoughts

Remember to take the home buying process one step at a time. If things get overwhelming, break it into even smaller parts. You can do this! Don’t be afraid to lean on friends and family for help, and take advantage of the professionals in your corner – like your real estate agent and mortgage lender.

Take the first step toward buying a home.

Get approved. See what you qualify for. Start house hunting.

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