When we bought our first (and current) home, the entire process moved quickly and smoothly. Our mortgage lender and real estate agent both mentioned it was one of the fastest transactions they’d handled. From pre-approval to closing, the process took less than a month.
We found the house we wanted in about two weeks. In that time we toured more than 20 properties in person and reviewed hundreds more online. We were convinced a number of those in-person visits would lead to an offer. Our agent probably grew tired of showing houses—luckily she was a family friend, which helped keep things amicable.
Now we’re considering buying again. We swing back and forth over what type of house we want, where it should be located, and how much we want to spend.
Our current home is suitable for now—there’s nothing wrong with it—yet we’d like something a bit nicer and with more space. That leaves us with two main options: a) stay put and save a lot of money; or b) buy a new home within the next year and finance most of it, likely with a roughly 25% down payment.
If we stay, we’ll probably invest in upgrades to make the house exactly what we want. I’d like to renovate parts of the bathroom, perhaps install a glass shower door, improve the front and back yards—maybe add a garden—and finish decorating each room to our taste. Those projects are a separate topic on their own.
When we bought our current house we followed most of the steps below. One thing we didn’t fully anticipate was how much higher the total monthly housing cost would be compared to the initial mortgage estimate. That was a painful surprise; learn from our mistake.
1. Get pre-approved for a mortgage
Start by getting pre-approved. House hunting without pre-approval can waste your time if you discover you don’t qualify for the price range you’re looking at. Pre-approval gives you a realistic budget and makes your offers stronger.
It’s disappointing to fall in love with a house that’s out of reach. Pre-approval helps prevent that and keeps your search efficient.
2. Buy below your maximum pre-approval
Being approved for a certain amount doesn’t mean you should spend that full sum. When we were 20 we were pre-approved for about $200,000 and it felt huge, but we opted to target a lower price so our monthly payments would be comfortable.
Also be careful about sharing your full pre-approval amount with sellers. Real estate agents often advise not to reveal the maximum you were approved for because sellers could use that information to push the price higher. If necessary, you can ask your lender to present a lower pre-approval figure on paper to avoid signaling your maximum budget.
3. Choose a house that fits your needs and plans
Think about how long you plan to live in the home and what your future needs will be. If you expect to grow your family or want more outdoor space, factor that into the size and layout you choose. We once bought more house than felt comfortable, and our priorities have shifted since then—now we want a larger yard.
Ask yourself whether you plan to stay five years or ten, whether you want a neighborhood suitable for children, and how resale potential fits into your decision.
4. Work with a realtor
A skilled real estate agent can save you money and handle complex negotiations. Our agent helped us secure the seller covering closing costs and arranging for repairs prior to closing. Realtors bring market knowledge, negotiation experience, and logistical support that make the transaction smoother.
5. Shop around and don’t rush
Take your time to compare multiple properties. Markets vary by location, but in many areas there are good options available. Since you’ll likely live in the house for years, avoid settling for the first place that seems “good enough.” Consider location, condition, price, and long-term suitability before making an offer.
6. Hire a home inspector
A professional inspection is a worthwhile expense. Inspectors can uncover structural, electrical, plumbing, or other issues that could change your decision. Spending a few hundred dollars for an inspection can save you thousands down the road or give you leverage in negotiations.
7. Calculate the full monthly cost
Don’t only consider the principal and interest. Include private mortgage insurance (PMI) if applicable, homeowners insurance, property taxes, HOA fees, utilities, and maintenance. These items add up and can significantly increase your monthly outlay. For us, these extras increased our monthly cost by several hundred dollars beyond the loan payment.
8. Build savings before moving in
Once you know you want to buy, save as much as possible before moving. Initial months often bring unexpected expenses—repairs, upgrades, furniture, or adjustments to utilities—so a cushion of savings makes the transition easier and reduces financial stress.
Related articles you might find useful:
- 6 Reasons You’re Horrible At Saving Money
- Easy Ways I’m Currently Saving $1,200 Each Month
- How To Save 50% Or More Of Your Income
- Ways to Earn Extra Income