Buying a home is one of the most exciting and significant financial decisions you’ll ever make. Whether you’re a first-time buyer or looking for your next dream home, understanding the process can help you feel confident every step of the way. Here’s a clear roadmap to guide you through the home-buying journey.
1. Start Saving For Your Down Payment
Before you start house hunting, it’s important to build your savings. A down payment typically ranges from 3% to 20% of the home’s purchase price, depending on the loan type*.
Pro Tip: Open a dedicated savings account to keep your home fund separate and growing. Automating contributions can make saving easier.
2. Check Your Credit & Set A Budget
Your credit score plays a big role in determining your mortgage rate. Review your credit report, pay down debt, and avoid new credit inquiries before applying for a loan. Next, calculate how much home you can afford by considering your income, monthly expenses, and potential mortgage payment. Use a Home Affordability Calculator to estimate your budget.
3. Get Pre-Approved For A Mortgage
Pre-approval shows sellers you’re a serious buyer and gives you a clear picture of your price range. During this step, your lender will review your financial information and provide a pre-approval letter — an essential tool in competitive markets.
4. Find The Right Real Estate Agent
A knowledgeable agent can help you navigate the market, negotiate offers, and handle paperwork. Look for someone who understands your goals and local market trends.
5. Start House Hunting
With your budget and pre-approval in hand, it’s time to explore homes that fit your needs. Make a list of must-haves and nice-to-haves to stay focused during your search.
6. Make An Offer & Negotiate
Once you find the right home, your agent will help you submit an offer. Be prepared for negotiations on price, closing costs, and contingencies.
7. Understand The Paperwork
Buying a home involves a lot of documentation, from purchase agreements to loan disclosures. Take time to review each document carefully. If you have questions, your lender and agent are there to help.
8. Schedule An Inspection & Appraisal
A home inspection ensures the property is in good condition, while an appraisal confirms its value. These steps protect your investment and are often required by lenders.
9. Close The Deal
At closing, you’ll sign the final paperwork, pay any remaining costs, and receive the keys to your new home. Congratulations — you’re officially a homeowner!
Get Started
BCU is here to guide you through every step of the home-buying process. From competitive mortgage rates to personalized support, we’ll help make your dream home a reality. Start your homebuying journey today.
*From The Life. Money. You.® Podcast: "You don’t need 20% down to buy a home — understanding PMI vs. MIP, FHA loan options, and refinancing strategies can help first-time buyers build long-term wealth..." Listen to the full episode.
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About BCU: BCU is a not-for-profit, member-owned credit union that is fiercely dedicated to Empowering People To Discover Financial Freedom. With over $6B in assets, BCU is committed to providing a fast, easy, and secure banking experience along with extraordinary service to more than 360,000 members. The BCU field of membership includes employees and their families from Fortune 100 companies across the US and Puerto Rico. Membership is also open to individuals who live or work in Northern Illinois, Southern Wisconsin, and Puerto Rico, as well as subscribers of BCU’s wholly owned Credit Union Service Organization (CUSO), Life. Money. You.®. All BCU members enjoy lifetime access to financial services and well-being programs that inspire confidence through the brand promise “Here Today For Your Tomorrow.”
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