Steps to Buying a Home-5-12-2025

Buying a House

By Steven Howard

Steps to Buying a House

1. Determine how much you can afford by looking at your income, savings, and any debts you might have. A good rule of thumb is to spend no more than 30% of your monthly income on housing costs. You should also check your credit score, as this will affect your ability to get a mortgage and the interest rate you will pay.

2. Next, you should get pre-approved for a mortgage. This involves a lender reviewing your financial information to determine how much they are willing to lend you. Loan applications involve submitting: tax info, pay stubs, bank statements/asset listings. Having a pre-approval letter can make you a more attractive buyer to sellers.

Multiple Choice

When considering to buy a house, how much of your income should you spend towards your mortgage each month? (monthly payments to live in a house)

• at least 70%

• no more than 50%

• no more than 30%

• at least 30%

Multiple Choice

When applying for a loan to buy a house, the first step involves:

• Finding a good loan officer/Lender

• Get a realtor right away

• Sell off all your assets/valuable items

Multiple Select

A loan application requires you to submit the following:

• Income and Pay Stubs

• Tax Documents

• Bank Statements and Assets/valuable possessions

• Credit Reports/History

• Blood Type

Steps to Buying a House

3. Once you know your budget, start looking for a house. Consider what features are most important to you, such as location, size, and amenities. You might want to work with a real estate agent/realtor who can help you find homes that meet your criteria and guide you through the buying process.

4. When you find a house you like, make an offer. This is a formal proposal to buy the house at a specified price. The seller can accept, reject, or counter your offer. If your offer is accepted, you will enter into a contract to purchase the home.

Multiple Choice

Realtor:

• A bathroom that contains a toilet and sink but no bathtub or shower.

• The proportion of the loan that is charged with interest to the borrower.

• A real estate agent - represents buyer or seller

Multiple Select

Searching for a house includes:

• Finding a good realtor

• Searching the web

• Visiting open house tours

• Pressuring people to sell their house that you like

Steps to Buying a House

5. Before finalizing the purchase, it's important to have the house inspected. A professional inspector will check the home for any issues that might need repair. If significant problems are found, you may be able to negotiate with the seller to fix them or lower the price.

6. Option period: Deposit 1% of house price, 5-10 day window for inspection, offer adjustment/repairs, final decision.

7. Finally, you'll go through the closing process. This involves signing all the necessary paperwork and paying any closing costs. Once everything is complete, you'll receive the keys to your new home.

Multiple Choice

closing costs

• The amount of the house that you have paid for, or the amount you would get if you sold the house.

• When a person pays off a mortgage faster than planned

• Fees paid at the sale of a home. May be paid by either the buyer or the seller.

Multiple Choice

Once your loan has been accepted, closing day includes:

• Paying the down payment

• Paying closing costs

• Signing paperwork for the title

• All of the above

Reorder

The "option period" involves:

• Deposit payment of 1% of the pruchase price

• 5-10 Window Provided by the Seller

• Home inspection

• Home repairs or adjust the offer

• Make a final decision on buying the house or not

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Multiple Choice

down payment

• An initial cash payment made when something is bought on credit.

• A percentage of the sale price that goes to the seller's and buyer's agents. Usually paid by the seller.

• The proportion of the loan that is charged with interest to the borrower.

Match

Match the following:

• 740

• 680

• 20% of Purchase Price

• 3.5% of Purchase Price

Ideal Credit Score for Buying a Home

Decent Credit Score for Buying a Home

Ideal Down-Payment %

Decent/Minimum Down-Payment %

• Ideal Credit Score for Buying a Home

• Decent Credit Score for Buying a Home

• Ideal Down-Payment %

• Decent/Minimum Down-Payment %

Drag and Drop

A ​

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letter is used to send an offer to the ​

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. This letter contains information like the purchase price you can ​

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.



If your offer is ​

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, it's important to keep your financial situation ​

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(don't change jobs, don't new credit cards, etc.)

Drag these tiles and drop them in the correct blank above

pre-approval

seller

afford

accepted

stable

Multiple Select

After buying a house, you still need money for:

• Utilities (electricity, water, gas)

• Moving costs

• Repairs and house maintenence

• Applying to be on an episode of "Cribs"