First-Time Homebuyer? Here’s How to Buy Real Estate the Right Way

Buying real estate can be an exciting (and sometimes overwhelming) process, but it gets much easier once you break it down. Here's a step-by-step overview of how to buy real estate, whether it’s for personal use, investment, or both:

1. Determine Your Goals

Ask yourself:

• Are you buying to live in, rent out, or flip?

• Are you looking for residential, commercial, land, or vacation property?

• Short-term investment or long-term hold?

  
  

2. Set Your Budget

• Figure out how much you can afford.

• Consider down payment (usually 10–20% of the property price).

• Don’t forget closing costs (3–5% of the price), taxes, maintenance, and insurance.

  
  

3. Get Pre-Approved for a Mortgage (If Financing)

• Talk to banks or mortgage brokers.

• Pre-approval shows sellers you're serious and helps narrow your search.

  
  

4. Start Searching for Properties

• Use online platforms (Zillow, Realtor, Redfin, local listings).

• Hire a real estate agent if you're unfamiliar with the market.

• Visit open houses or request private showings.

  
  

5. Make an Offer

• Your agent (if you have one) helps you draft and submit an offer.

• You may negotiate price, closing date, or other terms.

• Earnest money is usually required (a small deposit showing you're serious).

  
  

6. Do Due Diligence

• Home inspection (to uncover potential issues).

• Appraisal (to ensure value matches the loan).

• Title search (to verify ownership and liens).

• Review zoning laws or HOA rules if relevant.

  
  

7. Finalize Financing

• Lock in your mortgage rate.

• Provide final documents to your lender.

• Secure homeowner’s insurance.

  
  

8. Close the Deal

• Sign a bunch of documents.

• Pay closing costs and remaining down payment.

• Receive keys and ownership documents!

  
  

9. Move In or Start Using It

• If it’s for personal use: move in.

• If it’s an investment: find tenants, manage the property, or renovate/resell.