Your first home starts before the first showing.
The buying process becomes much easier when you know what happens before you start looking at homes.
Financing, savings, monthly payment, upfront costs, pre-approval, inspections and the offer process all matter before the keys ever change hands.
You don't need to know everything before you begin. You just need to know your next step.
How much home can I realistically afford?
How much money do I need upfront?
What does pre-approval actually mean?
What happens after I make an offer?
What should I expect between contract and closing?
UNDERSTAND YOUR BUDGET
GET PRE-APPROVED
SEARCH WITH FOCUS
MOVE TOWARD CLOSING
Start with your financial picture — not the listings.
You don't need to have everything figured out before talking with a real estate professional or lender.
But understanding your income, savings, existing obligations, credit profile and comfortable monthly housing budget can help determine what the next step should be.
“Can I buy?” and “What should I comfortably buy?” are different questions.
A lender can help determine what you may qualify for.
Your personal budget determines what payment you're comfortable carrying. Those numbers don't necessarily have to be identical.
Understanding both can help you search within a range that makes sense for your finances and goals.
What income can be documented?
Lenders generally evaluate qualifying income as part of the mortgage process. Employment type, income history and documentation requirements can vary.
What payments do you already have?
Existing debt obligations can affect mortgage qualification and the amount of monthly housing payment that may be manageable.
What money is available for the purchase?
Buyers may need funds for several different parts of the transaction — not simply the down payment.
What does your financial profile support?
Credit history and other lending criteria can affect qualification, loan options, pricing and mortgage terms. A lender can evaluate your specific circumstances.
That's still useful information. A conversation now can help identify what may need to happen before you're ready to purchase.
Your down payment isn't the only money to plan for.
One of the biggest first-time buyer misconceptions is that buying a home is simply purchase price plus down payment.
There may be several different categories of funds involved before and at closing. Your lender and other transaction professionals can provide estimates based on your specific purchase.
Your contribution toward the purchase price.
Down payment requirements vary depending on the mortgage program, borrower qualifications and other factors. A 20% down payment is not universally required.
A deposit connected to your offer.
Earnest money is generally submitted according to the terms of an accepted purchase agreement and is handled as provided by the contract.
Costs associated with completing the transaction.
Depending on the transaction, buyers may encounter lender charges, title-related costs, recording charges and other applicable expenses.
Some expenses may be collected in advance.
Depending on the loan and property, funds may be collected for items such as homeowners insurance, property taxes, prepaid interest or escrow reserves.
“I need 20% down to buy my first home.”
Not necessarily.
Mortgage programs can have different down-payment requirements, and some qualified buyers may have access to programs with lower down-payment options.
Certain buyers may also qualify for down-payment or homeownership assistance programs. Availability, eligibility, funding and program requirements can change, so current options should be verified with the appropriate lender or program administrator.
Instead of asking, “What's the minimum amount I can put down?” ask, “What combination of upfront cash and monthly payment makes the most sense for my situation?”
From “I think I want to buy” to getting the keys.
Your first purchase has a lot of steps. They make more sense when you can see the whole road.
Every transaction is different, but a traditional financed home purchase generally moves through several recognizable stages.
Buyer consultation
Discuss your goals, desired timeline, home-search priorities, the buying process and how representation will work.
Mortgage pre-approval
Work with a lender to evaluate qualification, financing options, estimated funds needed and an appropriate purchase range.
Find the right property
Search within the appropriate range while evaluating properties based on your priorities and available market options.
Build the offer
Review comparable information and discuss price, financing, contingencies, timing and other terms before submitting an offer.
Inspection period
If applicable under the purchase agreement, conduct inspections and evaluate the property according to the contract terms and deadlines.
Financing & appraisal
Continue working with the lender through underwriting, required documentation and any lender-required appraisal process.
Prepare for closing
Work through remaining transaction requirements, review closing logistics and prepare for the transition into homeownership.
Complete the purchase
Complete the applicable closing process and take possession according to the terms of the purchase agreement.
You should understand where you are in the process, what you're being asked to decide and what happens next.
Your offer was accepted.
Now what?
Getting the offer accepted is a major milestone — but it isn't the end of the buying process.
The period between acceptance and closing is when several important contractual, property and financing steps may occur.
This is where deadlines begin to matter.
The purchase agreement establishes the obligations, contingencies and deadlines that apply to the transaction. Understanding those dates is an important part of moving toward closing.
Submit the deposit
If required by the purchase agreement, earnest money should be delivered according to the amount, method and deadline established by the contract.
Learn about the property
If the agreement provides an inspection period, inspections can help you gather information about the property before applicable deadlines expire.
Keep the loan moving
Continue responding to lender requests and avoid making significant financial changes without first discussing how they could affect the mortgage process.
Lender valuation
When required by the lender, an appraisal may be ordered as part of evaluating the property for the mortgage transaction.
Ownership & title work
The title process helps address ownership and applicable title matters associated with transferring the property.
Prepare for ownership
Buyers financing a home will generally need to coordinate homeowners insurance according to lender and transaction requirements.
See the home again
When applicable, the final walk-through provides an opportunity to view the property shortly before closing according to the transaction arrangements.
Become the homeowner
Complete the required closing process and take possession according to the terms of the agreement.
You shouldn't have to wonder whether something is happening behind the scenes. As milestones are reached, you should know what's complete, what's happening now and what comes next.
You're choosing more
than four walls.
You're choosing a
location.
The house matters. So does everything surrounding it.
A focused home search considers both property characteristics and objective location factors important to your individual needs.
What does the home need to do?
Consider layout, condition, bedrooms, storage, outdoor space, parking and other property features relevant to your needs.
What places matter to you?
Consider proximity to work, transportation, shopping, recreation, services, family or other destinations based on your own priorities.
What does ownership look like?
Property taxes, insurance, utilities, maintenance considerations and applicable association costs can differ from property to property.
Verify what matters to you.
Buyers should independently research the objective community, municipal, transportation and other location information important to their decision.
Start learning about the communities behind the listings.
Our community pages provide a starting point for researching housing, local destinations, municipal resources, transportation and real estate context across West Michigan.
EXPLORE ALL COMMUNITIES →Fair housing laws are important. Rather than steering buyers toward or away from particular communities, we help you identify your own criteria and point you toward objective resources so you can evaluate locations for yourself.
Questions are expected.
That's why we
start with education.
Buying your first home comes with a new vocabulary, new decisions and plenty of questions.
01 How much money do I need to buy my first home? +
The amount varies based on purchase price, mortgage program, down payment, closing costs, prepaid expenses and other transaction factors. A lender can provide estimates based on your specific financial situation and potential purchase.
02 Do I need 20% down to buy a home? +
No. A 20% down payment is not universally required. Different mortgage programs have different down-payment requirements and eligibility standards. Your lender can explain the programs for which you may qualify.
03 Should I get pre-approved before looking at homes? +
Getting pre-approved before seriously shopping can help you understand your financing options and purchase range. It can also help you prepare to make an offer when you find a property you want to pursue.
04 What is earnest money? +
Earnest money is a deposit associated with a purchase agreement. The amount, timing, handling and application of the deposit are governed by the terms of the agreement.
05 What happens during a home inspection? +
When an inspection contingency is included in the purchase agreement, the buyer generally has an opportunity to have the property evaluated within the contractual inspection period. Your rights and options depend on the specific agreement.
06 What is a home appraisal? +
An appraisal is an opinion of value prepared by an appraiser. A mortgage lender may require an appraisal as part of evaluating the property for a financed purchase.
07 Are there programs that help first-time home buyers? +
Assistance programs may be available depending on factors such as eligibility, income, property, financing and available program funding. Because programs and requirements can change, current options should be verified with participating lenders or appropriate program administrators.
08 What if I'm interested in buying but I'm not ready yet? +
You don't have to wait until you're ready to make an offer before learning about the process. Starting earlier can help identify financing, savings or other steps that may need attention before you begin seriously shopping.
BUYER
GUIDE WEST MICHIGAN
HOME BUYER ROADMAP
Buying your first home?
Start with the
roadmap.
Get the free West Michigan Home Buyer Guide and understand the process before you start making major decisions.
How the buying process works
Down payment & upfront costs
Pre-approval explained
Offers & earnest money
Inspections & appraisal
What happens before closing
Let's figure out what your first step should actually be.
You don't need to be ready to buy tomorrow.
Whether you're ready for pre-approval or still trying to understand how buying works, we can start with where you are today.
Information on this page is general real estate education and is not legal, tax, financial, lending, inspection or other specialized professional advice. Mortgage programs, assistance programs, qualification standards, costs, transaction terms and market conditions can change. Consult the appropriate qualified professionals regarding your specific circumstances.