Let's Walk Through the Home-Buying Process Together

Let’s Walk Through the Home-Buying Process Together

February 12, 2026 Financial Planning By: Gavin Shoults

The home-buying process can be daunting, and understandably so. For many people, purchasing a home is by far the largest purchase they will make in their lifetime. However, having a clear plan and an understanding of this process can save potential buyers from unnecessary stress as they navigate such an important transaction.

Step 1: Planning

The process of buying a home begins long before ever stepping foot on a property. The first step of a successful and well-planned purchase is determining your budget. This includes how much you’re able to put towards a mortgage, which is the most obvious expense, but should also take into consideration things like homeowners’ insurance, utility bills, any HOA or monthly fees, property taxes, and charges that are assessed during the closing process. Although these pieces are not nearly as visible as the mortgage, they can significantly impact the upfront and ongoing costs of a new home and should be carefully considered when planning a budget.

Step 2: Figure Out Financing

After you have developed a clear idea of how much you can comfortably spend on housing, you’ll want to find a lender who can offer a competitive mortgage and work on getting pre-approved. This means that once you’ve found your dream home, you will already have a lender who has agreed to provide the mortgage loan to finance the purchase. This is important because it gives you a very clear idea of what home prices you can afford, what your monthly mortgage payments could look like, and will also make some of the financial transfers later in the process much easier and faster to complete.

Step 3: Build Your Team

In most cases, the next step is finding a realty professional to work with. While not strictly required, having a real estate professional on your team is generally highly recommended when navigating the real estate market. They can curate a collection of homes that match your specifications, handle some of the vetting and paperwork preparation when you find homes you may be interested in, and can connect you with appropriate sellers. Whether this is a professional that is highly rated in your area, or one who comes recommended by friends or family, having a talented real estate professional makes the process of buying a home significantly smoother.

Additionally, for some people, it can be beneficial to purchase the home in the name of your trust. Connect with your Financial Planning Team and your Estate Attorney for guidance related to your specific situation early on in the process.

Step 4: The Search Begins

Now that you have properly prepared, it is finally time to start looking at houses and finding your dream home! There are many ways to find potentials homes; a few examples include browsing online via a Multiple Listing Service (MLS), through agent recommendations, or by attending open houses or other in-person or virtual showings. However you end up searching, be sure to check out several homes so you can find out what features you like best and get an understanding of fair home prices.

Step 5: Coming to an Agreement

Once you’ve found a home you love, it’s time to make an offer to the seller. This will involve figuring out what you believe to be a reasonable purchase price and balancing this information with your budget. Also typically included in the offer is something referred to as earnest money, which is money you put into an escrow account to show you’re committed to buying the home. Once you’ve landed on a final amount, you’ll want to draft an offer letter to the buyer (which is another piece that is often made significantly easier with the help of a trusted real estate professional). The seller then has three options:

Accept the offer outright, in which case you proceed to the next step of the purchasing process.
Decline the offer, in which case you’d move on to looking at other homes.
Counteroffer — which is when they take your original offer and provide some revised terms they would find more favorable. In this case, you have the same options of accepting, rejecting, or offering a counteroffer.

Step 6: Final Checks

Once both parties have come to an agreement, you’ll want to contact the lender you worked with earlier and let them know you’ve found a property. They will often perform an appraisal of the home to make sure the loan they offer is fair before approval. You should also have an inspection of the home performed to uncover any issues that may have been hidden and ensure you have a clear picture of the home’s structural status. Finally, this is a good time to check on the title of the home and make sure there are no issues there that may cause legal or financial difficulties. These pieces are important to consider and should not be overlooked because this is the last point either party can back out of the agreement without significant impact, which may be the best option if an inspection discovers anything that would majorly impact the quality of the home. And, again, this is where a seasoned real estate professional can be helpful to confirm all parties are doing their final rounds of due diligence.

Step 7: Time to Sign

Once the lender has had a chance to review the home and materials they will collect from you, they will reach out to confirm your approval of the loan. You’ll be provided with several documents explaining the terms of the mortgage and your obligations as the homebuyer. Many lenders will also require you to show proof of insurance at this juncture. Once the loan forms have been signed and processed, the lender will begin the fund distribution per the terms of the mortgage agreement. At this point, any additional fees associated with closing will also be collected, as well as the down payment being required.

This step of the process tends to be very complex, and is often managed and overseen by a closing agent, escrow company, or closing attorney depending on your location. They will ensure that the funds are properly collected and distributed, proper documents are signed, and that no step of the closing process is completed before appropriate. Once the deed and other documents have been signed and funds have been transferred, the closing process is over. At this point, the home has officially changed hands, and you are now a homeowner!

Step 8: Settling In

The hard part is over, but there are still a few final pieces to address before finally moving in. You should call to set up utilities at your new home to ensure uninterrupted service, change out the locks on exterior doors, and make certain to keep the closing documents for your property somewhere safe if they’re ever needed.

If you have any questions about your home-buying journey and how it fits into your Live Big^® life, we’d love to talk!

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Let’s Walk Through the Home-Buying Process Together