11 steps for buying a house for the first time

Let’s break down the steps for buying a house for the first time so you know what to expect—and can feel more confident every step of the way.

Step #1: Get your money in shape

Before you start house hunting, it’s crucial to get your finances in order. Here’s what to focus on:

• Set a house budget: You’ll need to ask yourself: How much house can I afford? Look at your income, monthly expenses and existing debts. Remember, homeownership involves more than just the mortgage. You’ll also have utilities, property taxes and these other costs to consider. You want to make sure your home loan payments fit within your overall budget. You can try our free home affordability calculator to get a feel for how much home you might be able to afford.
• Boost your credit score: Your credit score affects your mortgage eligibility and options. Take the time to check in on your credit score and, if needed, take steps to improve it by paying your bills on time, keeping your credit card balances low and avoiding opening or closing accounts.
• Save for a down payment: Take the time to save for your down payment. A typical down payment ranges from 3% to 20% of the home price. The more you save, the better!

Can you buy a house with student loan debt? >

Pro tip: You can request a free Dupaco Money Makeover to help you review your entire financial picture, determine a house budget and create a plan to save for your down payment.

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Step #2: Choose the right lender

Now, it’s time to pick a mortgage lender. Here are a few things to consider:

• Competitive rates and low fees: Compare interest rates, closing costs and other fees to find the best fit for your budget.
• Positive reviews: Ask friends and family for recommendations, and check online reviews to see what other homebuyers say about their experience.
• Responsive customer service: The homebuying process can take time, so you want a lender who answers your questions promptly and clearly.
• Local loan servicing: Some lenders (like Dupaco) service your loan locally—meaning you’ll always know who to contact if you have a question.
• Variety of loan options: Look for a lender that offers a variety of borrowing options so you can find a loan that best fits your needs. (Hint: Dupaco offers eligible borrowers fixed-rate home loans, first-time homebuyer loans, 100% financing loans and more!)

Pro tip: Don’t be afraid to ask your lender for a breakdown of the fees upfront. Understanding the costs early can help you avoid surprises later.

Explore first-time homebuyer requirements >

Step #3: Get pre-approved for a mortgage

Getting pre-approved is essential. It tells you how much you can afford and shows sellers you’re serious.

During this process, you’ll submit financial documents (income, debts, assets), and the lender will evaluate your eligibility.

Pro tip: A preapproval letter can be a game-changer in competitive markets, making your offer stand out among other buyers.

Ready to get pre-approved? Apply here >

Step #4: Find a real estate agent

A good real estate agent can make a huge difference. They can help you find homes within your budget, negotiate offers and guide you through the process.

Choose someone you feel comfortable with—someone who understands your needs and is responsive throughout the journey.

Pro tip: If you’re not sure where to start, ask for recommendations from friends, family or coworkers who’ve recently bought homes.

Step #5: Start looking for your dream home

This is where the fun begins—house hunting! As you search, keep these tips in mind:

• Know your must-haves: List what you absolutely need, like the number of bedrooms or a big yard. Knowing what you want can help you narrow your options.
• Don’t settle: If something feels off, don’t be afraid to walk away. There are plenty of homes out there. (Look out for these red flags.)
• Be prepared to negotiate: When you find the one, your agent will help you make an offer. If the seller counters, be ready to negotiate.

Pro tip: Don’t rush into making an offer on the first house you love. Take your time to see multiple properties, and don’t hesitate to revisit a home you’ve seen earlier. It may feel different after seeing other options.

Step #6: Make an offer

Once you’ve found the right home for you, it’s time to make an offer. Your agent will help you determine a fair price based on similar homes in the area and current market conditions.

If the seller accepts your offer, the house is officially “under contract.”

Pro tip: In a hot market, make sure your offer is strong. Offering slightly above the asking price or being flexible on the closing date could give you an edge over other buyers.

Step #7: Confirm your mortgage details

After your offer is accepted, your lender will review the loan details, including the amount, interest rate and terms. Be ready to provide any additional documents they request to verify information like your income and assets.

During this time, you’ll want to keep your lender in the loop regarding any major financial changes. This is because your pre-approval is based on your current job history, income and total financial picture. So, it’s important to first discuss any changes with your lender, like:

Pro tip: Lock in your interest rate as soon as possible to avoid fluctuations, especially if you’re in a market with rising rates. Your lender can help you with this process.

Explore first-time buyer programs and grants >

Step #8: Get a home inspection

A professional home inspection is crucial to ensure there are no hidden issues. The inspector will check the home’s structure and systems. If they find any major problems, you can negotiate with the seller for repairs or a lower price.

Pro tip: If possible, attend the inspection. This way, you can ask questions directly and get a better understanding of any potential issues.

Avoid these first-time homebuyer mistakes >

Step #9: Shop for homeowner’s insurance

Before closing, you’ll need homeowner’s insurance. This protects your property from damages like fire or theft. Compare policies for the best coverage at a reasonable price, and make sure you have a policy in place before your closing date.

Pro tip: Some insurers may offer discounts if you bundle home and auto insurance. It’s worth asking about this when shopping for a policy.

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Step #10: Schedule an appraisal

Your lender will require a home appraisal to ensure the property’s value matches the sale price. If the appraisal comes in lower than expected, you may need to renegotiate or cover the difference with cash.

Pro tip: If the appraisal is lower than expected, your agent can help you decide whether to negotiate with the seller, ask for a price reduction or walk away from the deal.

Step #11: Close the deal and move in

Once everything checks out, it’s time to close. This is when the house officially becomes yours. You’ll sign paperwork, pay any remaining fees (including your down payment) and officially become a homeowner!

Pro tip: Before the closing date, double-check that the seller has completed any agreed-upon repairs or left the home in the condition you expect. Do a final walkthrough to confirm everything’s in order.

Apply for a home loan >