Steps to Take to Buy a Home with a Lender and Realtor

Buying a home is one of the most significant financial decisions you’ll make in your lifetime. Whether you’re a first-time homebuyer or experienced in the process, having a skilled lender and realtor by your side can make the journey smoother. Below is a detailed guide on the essential steps to take when purchasing a home with a lender and realtor.

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1. Assess Your Finances

Before diving into the home-buying process, take stock of your financial situation. This includes:

  • Credit Score: Lenders will look at your credit score to assess your eligibility for a mortgage and determine the interest rate. A higher score generally means better rates.
  • Down Payment: Most home loans require a down payment, typically between 3% and 20% of the home’s purchase price.
  • Debt-to-Income Ratio (DTI): Lenders use this ratio to evaluate your ability to manage monthly payments on new debt.

Having a clear understanding of your finances will not only guide your expectations but also help in discussions with both your lender and realtor.

2. Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage should be one of your first steps. This process involves providing the lender with your financial details, including income, debts, and assets, so they can evaluate your eligibility for a loan.

  • Why Pre-Approval Matters: Pre-approval gives you a clear idea of how much you can afford to borrow. It also shows sellers that you are a serious buyer, making it easier to secure the home of your choice.

Reach out to a lender (bank, credit union, or mortgage broker) to start the pre-approval process. Once you’re pre-approved, you’ll receive a pre-approval letter that you can present when you make an offer on a home.

3. Hire a Real Estate Agent

Having a real estate agent (realtor) can simplify the process, save you time, and even help you avoid pitfalls. A realtor is experienced in the local market and can help you:

  • Find Homes: Realtors have access to listings and can help narrow down your search based on your preferences, location, budget, and other factors.
  • Negotiate: Your realtor will be able to negotiate the price, contingencies, and closing terms on your behalf.
  • Provide Expertise: Realtors can recommend trusted home inspectors, contractors, and other professionals you may need throughout the process.

Choose a realtor with a good track record and experience in your preferred neighborhood.

4. Determine Your Budget and Home Preferences

With the guidance of your realtor, make a list of your priorities for your new home, such as:

  • Location: Do you want to be near schools, work, or public transportation?
  • Size and Features: Consider the number of bedrooms, bathrooms, and the overall square footage. Think about any specific features, such as a backyard, garage, or updated kitchen.
  • Budget: Work with your lender and realtor to determine a realistic price range based on your pre-approval amount and down payment.

5. Start House Hunting

Once you have your budget and preferences in mind, your realtor will help you find potential homes. They will set up viewings and help guide you through the pros and cons of each property.

During the search:

  • Be Patient: Finding the perfect home takes time. Don’t rush into a decision and keep an open mind.
  • Make Notes: After each viewing, take notes and photos to help you remember the details of each property.

Your realtor will help you refine your search and narrow down your options.

6. Make an Offer

When you find a home that meets your needs, your realtor will help you craft a competitive offer. This includes determining:

  • Price: How much you’re willing to pay for the home.
  • Contingencies: These can include inspection contingencies (to ensure the house is in good condition) and financing contingencies (to ensure you secure the mortgage).
  • Closing Timeline: The timeline for finalizing the deal, including the closing date.

Your realtor will present your offer to the seller’s agent and negotiate on your behalf if necessary.

7. Schedule a Home Inspection and/or other Inspections

Once your offer is accepted, it’s time for a home inspection. This step is crucial as it helps identify any hidden problems with the property. A licensed inspector will evaluate the home’s structure, systems (electrical, plumbing, HVAC), and overall condition.

If issues are found during the inspection, you can:

  • Negotiate Repairs: Ask the seller to address the problems before closing.
  • Request a Price Reduction: Alternatively, you could negotiate a price reduction to compensate for necessary repairs.

If the home has significant issues, you may choose to walk away, depending on the contingencies in your offer.

8. Finalize Your Loan

Once you’ve completed the inspection process and agreed on terms with the seller, it’s time to finalize your mortgage with the lender. This involves:

  • Locking in Your Rate: Confirm your loan details with your lender, including the interest rate, loan term, and monthly payment.
  • Appraisal: The lender will order an appraisal of the home to ensure its value aligns with the loan amount.
  • Submit Additional Documents: Your lender may request additional documentation before finalizing your mortgage.

Be sure to stay in close contact with your lender during this phase to avoid delays.

9. Close on the Property

Closing is the final step in the home-buying process. This is when you sign the paperwork and officially take ownership of the property.

  • Review Documents: Before closing day, carefully review all documents, including the closing disclosure, which outlines the final terms of your loan and the costs associated with the closing.
  • Pay Closing Costs: Be prepared to pay closing costs, which can include fees for the appraisal, title search, attorney fees, and more. These typically range between 2% to 5% of the home’s purchase price.
  • Sign the Paperwork: On closing day, you’ll sign the mortgage documents, and the lender will transfer the funds to the seller.

After everything is finalized, you’ll receive the keys to your new home!

10. Move In and Settle Down

Once the transaction is complete, the house is officially yours. Now it’s time to move in and start making your new house feel like home.

Remember to change the locks, set up utilities, and update your address with relevant organizations.

If you need help getting connected with a trusted, local lender, let me know.  I have worked with several in the area and can help you get started on your way to homeownership.


Buying a home is a multi-step process that requires collaboration with both a realtor and a lender. By following these steps and keeping organized, you’ll be well-equipped to make informed decisions and ultimately find your dream home. Whether you’re a first-time buyer or a seasoned homeowner, having professional guidance along the way will ensure a smoother, more successful experience.

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