how to buy a house

How to Buy a House

Buying a house is an exciting milestone, but for many people, it can also be a daunting task. If you’re ready to take the plunge and purchase your first home, here are some steps to help you on your path:

1. Start Saving and Determine Your Budget

The first step in the home-buying process is figuring out how much you can afford. To do this, take into account your current income and expenses, as well as:

  • Down payment: Most lenders require a down payment of at least 5% of the home’s purchase price.
  • Closing costs: These include such expenses as appraisal/inspection fees, attorney’s fees and title insurance.
  • Mortgage payments: Most lenders prefer that your monthly mortgage payment be no more than 28% of your monthly income.
  • Property tax and insurance: These are typically added to the mortgage loan for convenience.

Once you’ve established your budget, it’s time to start saving for a down payment!

2. Get Pre-Approved for a Mortgage

After you’ve saved a reasonable amount for a down payment and established how much you can comfortably afford to pay, you’ll need to be pre-approved for a mortgage loan by a lender. During the pre-approval process, the lender will look at your credit report and income to ensure you can afford the loan. Once you’ve been pre-approved, you’ll know your monthly mortgage payment, which will help you narrow down your search for the right home.

3. Find a Real Estate Agent

Determining your budget and getting pre-approved are two of the biggest steps in the home-buying process, but navigating the real estate market can be tricky. A qualified real estate agent can use their expertise to help you find a home that fits your needs and negotiate a favorable deal for you.

4. Make an Offer and Negotiate

Once you’ve found a house you’re interested in, you’ll need to make an offer and negotiate the purchase agreement.

  • Make an offer:Include information about your finances, such as the amount of your down payment, as well as other details, like how soon you can close. Most offers also include earnest money, usually 1-3% of the purchase price to show that you are serious about the sale.
  • Negotiate: Negotiations can include things like closing costs and repairs the seller is willing to make before you move in. Be sure to keep your communication clear and to-the-point.
  • Inspection and appraisal: Your lender will want to inspect the house prior to the closing, so you can be sure it’s in good condition. An appraiser will also assess the value of the home to make sure the asking price is fair.
  • Finalizing the loan: Once all of the paperwork is in order and the inspection and appraisal is complete, your lender will finalize the loan and you’ll be ready to close on the house!

5. Closing Day

The final step in the home-buying process is closing day, where all of your paperwork is signed and the title is passed to you. After this step, you’re officially a homeowner!


Buying a home can be an exciting and rewarding experience, but there are a lot of decisions to make along the way. To simplify the process, start by saving and determining your budget, getting pre-approved for a mortgage and finding a qualified real estate agent. Follow up by making an offer and negotiating the purchase agreement, and then wrapping up the paperwork to close on the house. With the right preparation, you’ll be in your new home in no time!


Mostafa Saady, Egyptian Software Engineer, supersonic self-learner and teacher, fond of learning and exploring new technologies and science. As a self-taught professional I really know the hard parts and the difficult topics when learning new or improving on already-known languages. This background and experience enables me to focus on the most relevant key concepts and topics.

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