Look, house hunting shows make it seem like you pick granite countertops and magically get keys. Reality? I nearly had a panic attack when I saw my first inspection report. Let's talk real first steps to buying a house – the messy, number-crunching, paperwork-heavy truth they don't show on TV.
Reality Check: My pre-approval letter said I could "afford" $50K more than my comfort zone. If I'd maxed that out, one furnace breakdown would've sunk me. Banks aren't budgeting for your Netflix subscription.
Before You Even Look at Zillow: The Money Talk
Dreaming about backyards is fun. Staring at your bank statement? Not so much. But skipping this step causes more heartbreak than bad Tinder dates.
Your Bank Account Interrogation
- Down payment: 20% avoids PMI, but 3-5% loans exist (FHA, USDA). My cousin put down 3.5% with FHA, but pays $138/month in PMI.
- Closing costs: 2-5% of loan value. On a $300K house? Expect $6K-$15K on top of down payment.
- Emergency fund: Keep 3-6 months of expenses NON-NEGOTIABLE. Water heaters die at 2 AM.
Confession: I almost drained my savings for closing. Then my inspector found $7K of rotting subfloor. Had I not kept reserves, I'd have been cooking on a hotplate in an empty dining room.
Credit Score: The Gatekeeper
Think of it as your financial GPA. Below 620? Most doors slam shut. Here's how it breaks down:
| Credit Score Range | Loan Options | Interest Impact (Estimate) |
|---|---|---|
| 760+ | Best conventional/FHA/VA rates | Lowest rates (e.g., 6.5% APR) |
| 700-759 | Good options, slightly higher rates | +0.25% to 0.5% |
| 620-699 | FHA possible, higher fees | +0.75% to 1.5% |
| < 620 | Subprime or wait-and-rebuild | Rates 8%+ |
Fix errors on reports now (AnnualCreditReport.com). Pay down cards below 30% usage. Example: My score jumped 38 points paying one card from 95% to 20% utilization.
The Loan Pre-Approval Tango: More Than a Paper
Getting pre-approved isn't window shopping – it's financial strip poker. They'll ask for:
- 2 years of tax returns
- Recent pay stubs (usually 30 days)
- Bank/retirement statements (all pages!)
- Photo ID and Social Security card
Pro Tip: Get pre-approved with 2-3 lenders. When I bought in 2022, Lender A offered 6.125%, Lender B matched at 5.99% with lower fees. Saved $11K over the loan.
Real talk: Pre-approval letters have expiration dates (usually 90 days). Don't start this too early.
Agent Hunting: Your Quarterback Matters
A bad agent costs you money. A great one saves you thousands and sanity. Skip your aunt's friend's cousin.
Agent Vetting Checklist
- Local obsessives only: They should know block-by-block values, permit histories, school district quirks.
- Ask: "Walk me through your last 3 first-time buyer deals." Listen for negotiation stories.
- Red flags: Pushes you beyond budget, avoids evening calls, uses "trust me" instead of data.
Interview at least three. My first pick had 25 years experience but returned calls slower than dial-up. My second answered texts at 9 PM with comps.
The House Hunt: Falling in Love Without Losing Your Mind
Here's where first steps to buying a house get emotional. Keep these deal-breakers front-of-mind:
- Location crimes: Backs onto highways, flood zones, impossible commutes.
- Money pits: Knob-and-tube wiring, cracked foundations, ancient roofs.
- Lifestyle mismatches: Tiny kitchen for a gourmet cook, stairs for bad knees.
Bring this to every showing:
| Must-Haves | Nice-to-Haves | Dealbreakers |
|---|---|---|
| 3 bedrooms | Hardwood floors | Major highway noise |
| Fenced yard | Stainless appliances | Foundation cracks |
| Under 30-min commute | Gas stove | HOAs over $300/month |
Offer Time: Playing Poker With Your Future
Found "the one"? Now the real stress begins. Your agent crafts the offer letter covering:
- Price: Based on comps, not Zestimate (those lie)
- Earnest money: Usually 1-3% (held in escrow)
- Contingencies: Inspection, appraisal, financing
- Closing timeline: Typically 30-45 days
Hot Market Tip: Waiving inspection? Just don't. I saw a "cute fixer-upper" needing $80K in structural work. Saved by inspection contingency.
Inspection Day: The Ultimate Truth Serum
$300-$500 that can save you $30,000. Attend this! Inspectors find:
| Common Issue | Average Repair Cost | Negotiation Strategy |
|---|---|---|
| Old roof (15+ years) | $8,000-$15,000 | Ask for credit at closing |
| Faulty wiring | $1,500-$10,000 | Demand repair by licensed electrician |
| Foundation cracks | $5,000-$40,000+ | Walk away or major price reduction |
| Plumbing issues | $500-$5,000 | Seller-paid repair |
My inspector found "minor" water stains. Turns out, a $7K roof leak. Sellers paid half via closing credit.
Appraisal & Underwriting: The Final Boss Fight
The bank sends an appraiser to verify value. If it appraises low:
- Option 1: Seller lowers price
- Option 2: You cover the gap
- Option 3: Walk away
Meanwhile, underwriting digs DEEP. They'll question:
- Large recent deposits ("Where'd this $5K come from?")
- Job changes in past 2 years
- New credit inquiries
Provide docs immediately. One delay pushed my closing by 2 weeks once.
Closing Day: Where Money Meets Keys
Expect 1-2 hours of signing 100+ pages. Bring:
- Government-issued photo ID
- Cashier's check for closing costs (get amount 24hr prior)
- Proof of homeowner's insurance
Closing Cost Breakdown (Example on $300K Home):
- Lender fees: $1,200
- Title insurance: $1,100
- Escrow deposit (taxes/insurance): $2,400
- Recording fees: $250
- Prepaid interest: $700
TOTAL: ~$5,650
You'll sign the deed, mortgage note, and truthfully, you won't remember half of it. Then... keys.
Post-Keys Reality: Welcome to Homeowner Bootcamp
First steps to buying a house aren't done at closing. Day 1 priorities:
- Change ALL locks ($150-$300)
- Locate water shut-off valve & electrical panel
- Deep clean before moving in
- Set up utilities transfers
Budget $2K-$5K for immediate "while walls are empty" projects: painting, floor refinishing, security system.
Common First-Time Buyer Blunders (Don't Be Me)
- Ignoring hidden costs: Property taxes spiked 12% year one for me. Ouch.
- Maxing budget: Leave breathing room for repairs and life.
- Skipping final walkthrough: Found fridge gone on walkthrough once. Deal paused until returned.
- Forgetting resale: Buying the "weird" house limits future buyers.
FAQs: Your Burning First Steps to Buying a House Questions
How long do first steps to buying a house actually take?
From credit repair to keys: 4 months (if smooth). Pre-approval to closing: 30-50 days.
Can I buy with student loan debt?
Yes, if DTI stays below 43-50%. Pay down highest-interest loans first.
Are closing costs negotiable?
Sometimes. Sellers might cover some via "concessions." Lender fees may be flexible.
What credit score begins the first steps to buying a house?
580 for FHA, 620 for conventional. But 740+ gets best rates.
Should I pay off debts before saving for a down payment?
Tackle debts over 7% interest first. Below that? Focus on down payment savings.
How much earnest money is normal?
1-3% of purchase price. Higher in competitive markets.
Can I change lenders after pre-approval?
Yes, but it delays everything. Compare lenders upfront!
What are the most overlooked first steps to buying a house?
1) Checking sewer lines ($$$ to replace) 2) Researching flood zones 3) Budgeting for immediate repairs.
The journey of buying a house is overwhelming, exhilarating, and occasionally infuriating. But nailing those first steps to buying a house means less panic later. Skip the HGTV fantasy. Focus on credit scores, cash reserves, and a killer agent. Then maybe... granite counters.
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