Buying a home is one of life’s biggest financial moves—and for many, one of the most meaningful. Whether you’re just starting to think about homeownership or already scrolling through listings, having a clear roadmap can help take the pressure off.
This step-by-step guide is designed to walk you through the process, so you can approach each phase with confidence, clarity, and peace of mind.
Step 1: Know Where You Stand Financially
Before you start looking at homes, take a look at your credit score. Lenders use this score to determine your mortgage eligibility and interest rate. The higher your score, the better your chances for a favorable loan.
A few things to keep in mind:
Credit scores typically range from 350 to 850.
Aim for 720+ for the best rates on conventional loans.
FHA loans may accept scores as low as 580.
Review reports from TransUnion, Equifax, and Experian. Dispute any errors and start improving your score if needed.
Step 2: Set a Realistic Budget
Understanding what you can afford helps narrow your search and reduces future financial stress. Use a home affordability calculator to factor in your income, existing debts, and estimated down payment.
As you assess your price range, take stock of your priorities:
Must-haves: number of bedrooms, layout, yard, location
Nice-to-haves: bonus spaces, upgrades, proximity to schools or work
It’s okay to adjust your wish list as your budget becomes clearer.
Step 3: Get Pre-Qualified
Pre-qualification gives you a clearer picture of your buying power and signals to sellers that you’re a serious buyer.
Working with a trusted lender early on can help simplify the mortgage process from start to finish. At BankFirst, for example, local decision-making and personalized service help keep things moving smoothly.
Step 4: Partner with a Real Estate Agent
A licensed real estate agent is your guide through the process. They bring local market knowledge, negotiation skills, and help with contracts, showings, and timelines.
Look for an agent with a strong reputation and experience in the area where you want to buy.
Step 5: Begin Your Home Search
Now the fun begins. Browse homes online, tour neighborhoods, and lean on your agent for curated listings. Make a list of must-haves and deal-breakers—and remember, no home is perfect.
When touring homes, pay attention to:
Overall structure and layout
Water pressure and plumbing
Roof and exterior condition
Electrical systems
Noise levels and neighborhood feel
Step 6: Make Your Offer
When you find a home you love, your agent will help you craft a competitive offer based on market trends and property condition.
An offer typically includes:
Purchase price
Contingencies (like inspection or financing)
Preferred closing date
Earnest money (a deposit showing you're serious)
Any seller concessions or repair requests
Step 7: Schedule the Inspection
Once your offer is accepted, the next step is a home inspection. A professional inspector checks for any hidden issues and gives you peace of mind before closing.
What happens next:
If major issues are found, you can negotiate repairs or ask for seller credits.
If the home passes inspection, you’ll move forward with confidence.
Step 8: Finalize Your Mortgage
Even if you’re pre-qualified, you’ll need to officially apply for your mortgage. This includes submitting documentation, verifying income, and working with your lender to lock in your interest rate.
Choosing the right lender can make a big difference. Look for:
Competitive rates
Clear communication
Local support for faster turnaround times
Guidance from application to closing
Step 9: Purchase Homeowners Insurance
Before closing, your lender will require proof of homeowners insurance. This protects your home from potential damage or loss—and protects the investment your lender is helping you make.
Start by gathering quotes from trusted providers. Your agent or lender may have recommendations, too.
Step 10: Close and Move In
Before your closing appointment, you’ll do a final walkthrough of the home to ensure everything’s in order. At closing, you’ll sign the paperwork, pay any remaining closing costs (typically 3–5% of the purchase price), and receive the keys to your new home.
After closing:
Transfer utilities into your name
Update your address
Unpack and enjoy the start of a new chapter
Final Thoughts
Buying a home doesn’t have to feel overwhelming. With a clear roadmap, the right team, and a little patience, your dream home is closer than you think.
At BankFirst, we’re here to support you every step of the way. Whether you're preparing to buy now or planning for the future, we’re just a conversation away.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 454063
www.nmlsconsumeraccess.org
900 Main Street
Columbus, MS, 39701
Phone: (662) 328-2248
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