How long does it take to buy a home?

It varies with the market and your financing. The search can take anywhere from days to many months; once you are under contract, a financed purchase commonly takes several weeks to close, while a cash purchase can close faster.

Is pre-approval the same as pre-qualification?

No. Pre-qualification is usually an estimate based on information you report. Pre-approval means a lender has reviewed documents such as pay stubs, tax returns, bank statements and your credit report, so sellers treat it as stronger evidence that you can finance the purchase.

Do I need 20% down to buy a home?

Not necessarily. Many loan programs allow smaller down payments. On a conventional loan, putting down less than 20% usually means paying private mortgage insurance until you build enough equity. Program rules and minimums vary, so ask a lender which options fit your situation.

Should I use a buyer's agent?

Many buyers do, because an agent can help with pricing, negotiation and managing deadlines. How buyer's agents are paid has changed in recent years and can be negotiated, so ask any agent to explain their fee and put the arrangement in writing before you start touring homes.

First-time and repeat buyers purchasing a home through a standard, on-market sale.

Buying a Home

Most homes in the US are bought through a familiar sequence: you set a budget, get pre-approved for a mortgage, find a home, negotiate a contract, clear inspections and the appraisal, and close. Each step has its own paperwork, deadlines and decision points, and knowing what comes next makes the process far less stressful.

This section walks through that sequence in order. Even if you plan to buy a pre-foreclosure, an auction property or a bank-owned home later, start here: the budgeting, financing and closing basics apply to every kind of purchase, and distressed sales mostly change the details rather than the fundamentals.

Home buying roadmap

6 steps from first search to keys in hand. Each step has a guide.

Step 1: Set your budget
Work out a monthly payment you can carry and how much cash you have for a down payment, closing costs and reserves.
Read the guide
Step 2: Get pre-approved
Have a lender review your income, assets and credit so you know your price range and can make credible offers.
Read the guide
Step 3: Search with an agent
Define what you need, tour homes and compare recent sales so you recognize a fair price when you see one.
Read the guide
Step 4: Make an offer and negotiate
Choose a price, earnest money deposit and contingencies, then work through counteroffers to a signed contract.
Read the guide
Step 5: Inspect, appraise and finalize the loan
Use the contingency period for a home inspection and appraisal while the lender completes underwriting.
Read the guide
Step 6: Close and take possession
Review the Closing Disclosure, do a final walkthrough, sign the documents and receive the keys.
Read the guide

Home Buying guides

How Much House Can You Afford?Guide · 6 min readThe right price is the one you can pay every month without strain and still keep savings for repairs and emergencies. This guide shows how lenders measure affordability, what they leave out, and how to build a budget that works for you.How to Get Pre-Approved for a MortgageGuide · 7 min readA pre-approval tells you, and the sellers you make offers to, how much a lender is prepared to lend after checking your income, assets and credit. This guide explains how it differs from pre-qualification, what to gather, how to compare lenders and what can change the answer before closing.The Home Buying Process, Step by StepGuide · 5 min readBuying a home follows a predictable sequence, even though every transaction has its own wrinkles. This guide walks through each step in order, explains what you decide at each one and points to the detailed guide for every stage.How to Make an Offer on a House and NegotiateGuide · 8 min readAn offer is more than a price. The deposit, contingencies, timeline and requests you include all shape whether the seller says yes and how protected you are afterwards. This guide explains each term and how negotiation usually unfolds.Inspection, Appraisal and Underwriting: Clearing Contingencies Before ClosingGuide · 7 min readOnce your offer is accepted, a short window opens to check the home's condition, its value and your loan. This guide explains how the inspection, appraisal, underwriting and title review run side by side, and how to clear each contingency before its deadline.Closing Day: What to Expect When You Buy a HomeGuide · 7 min readClosing is where the loan funds, the money changes hands and the home becomes yours. Knowing what to review beforehand, what to bring and what you are signing makes the day shorter and helps you catch problems while they can still be fixed.

Terms to know

Mortgage Pre-ApprovalMortgages & financingA mortgage pre-approval is a lender's conditional commitment to lend up to a set amount, based on verified income, assets and credit. Sellers often expect one before accepting an offer.MortgageMortgages & financingA mortgage is a loan used to buy real estate, secured by the property itself. If the borrower stops paying, the lender can take the property through foreclosure to recover what is owed.Down PaymentMortgages & financingA down payment is the part of a home's purchase price the buyer pays upfront in cash rather than borrowing. It is usually stated as a percentage of the price and is due at closing.PITIMortgages & financingPITI stands for principal, interest, taxes and insurance, the four parts of a typical monthly mortgage payment. Lenders use it to judge whether a borrower can afford a home.Debt-to-Income Ratio (DTI)Mortgages & financingDebt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to decide how large a mortgage payment you can afford.Earnest MoneyBuying & closingEarnest money is a deposit a buyer puts down when an offer is accepted to show good faith. It is held in escrow and usually credited toward the down payment or closing costs at closing.ContingencyBuying & closingA contingency is a condition in a purchase contract that must be met for the sale to go through. If it isn't met by its deadline, the buyer can usually cancel and keep their earnest money.Home InspectionBuying & closingA home inspection is a professional visual examination of a home's structure and systems, ordered by the buyer to find defects before closing. It usually happens during the inspection contingency period.AppraisalBuying & closingAn appraisal is a licensed appraiser's independent estimate of a property's market value. Lenders require one to make sure the home is worth at least the amount being borrowed.Closing CostsBuying & closingClosing costs are the fees and prepaid expenses paid to complete a real estate purchase, beyond the price and down payment. Buyers typically pay about 2% to 5% of the loan or purchase price.EscrowBuying & closingEscrow is an arrangement where a neutral third party holds money or documents until the conditions of a deal are met. The term also refers to the account a lender uses to pay a borrower's property taxes and insurance.Loan-to-Value Ratio (LTV)Mortgages & financingLoan-to-value ratio (LTV) compares the size of a mortgage with the property's value. A lower LTV means more equity and less risk for the lender, which often brings better loan terms.

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Browse homes for sale across the country on RealtyTrac, with property details, estimated values and foreclosure status.

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Calculators for this path

Home Affordability CalculatorThe price range your income and debts support under the 28/36 rule.Mortgage CalculatorMonthly payment with taxes, insurance, PMI and an amortization schedule.Rent vs. Buy CalculatorThe total cost of owning versus renting over your time in the home.Closing Cost CalculatorLine-by-line closing costs and cash needed at closing.

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Frequently Asked Questions

Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.