Steps to buy a home in the United States

Step 1: Prepare to shop

The CFPB’s advice is to take your time: choosing a mortgage matters as much as choosing a home. Review your credit reports early so you have time to correct mistakes, track your spending to see what monthly payment you can afford, and set a price budget before you look at homes. The CFPB also lists a down payment decision and a network of advisors among the preparation steps, and it links to a directory of HUD-certified housing counselors. For the money side, see how much down payment you need and credit score and mortgage rates.

Step 2: Explore loan choices and find a home

This step ends with an offer on a home. The CFPB says a preapproval letter helps show sellers you are a serious buyer, and that it does not obligate you to use that lender. Meet with several lenders and compare their offers. Read what lenders check at preapproval.

If you work with a real estate agent, a written agreement is now required before the agent tours a home with you. It must state how the agent will be paid. See buyer agreements after the 2024 NAR settlement and real estate commission.

Before you commit, the CFPB suggests making your offer and sales contract contingent on getting financing and on a satisfactory inspection. A contingent buyer is not contractually required to buy if the inspection finds serious flaws. Your deposit with the offer is called earnest money. See also what a home inspection costs and covers.

Step 3: Choose a loan offer

After your offer is accepted, the CFPB says you may have as little as a couple of days to line up financing. The standard form makes the comparison simple:

• The lender must give you a Loan Estimate within three business days after it receives your application (Regulation Z, 12 CFR 1026.19(e)).
• All lenders use the same three-page form (CFPB), so you can compare offers side by side.
• A Loan Estimate is not an approval or a denial.
• Tell the lender you intend to proceed. The lender cannot assume that silence means yes, and the CFPB says to notify it within 10 business days of receiving the Loan Estimate.
• Ask about a rate lock. The CFPB says locks are typically available for 30, 45 or 60 days, sometimes longer, and a locked rate can still change if your loan amount, down payment, credit score, verified income or appraisal changes.

See how mortgage rates are set.

Step 4: Get ready to close

The CFPB lists eight actions for this stage: answer lender requests for documents, schedule a home inspection, shop for homeowners insurance, shop for title insurance and other closing services, watch for revised Loan Estimates, review documents before closing, close, and handle after-closing tasks. Related guides: home appraisal, title insurance and homeowners insurance.

Three business days before closing, you must receive the Closing Disclosure, a five-page form with your final loan terms and costs. Compare it with your last Loan Estimate and ask the lender about anything that differs. The CFPB also warns that scammers target buyers in the days before closing, so be alert for mortgage closing scams. At the table, signing is the last step, and the CFPB’s reminder is plain: once you sign, you are responsible for the mortgage loan.

At a glance

Where states differ

Federal law sets the loan forms and their timing. States and local markets decide the rest: the sales contract form, who pays which closing cost, whether an attorney handles the closing, transfer taxes, property taxes and seller disclosures. For examples, see closing costs in Texas and closing costs in California.