By: Luca Mascellino
Step 1: Evaluate Your Financial Health
Before you browse a single listing, take a clear-eyed look at your finances. Your credit score, debt-to-income ratio and savings will largely determine what kind of home you can afford. It will also give you a clearer idea on how favorable a mortgage rate you’ll qualify for.
Pull your credit reports. If your score needs work, take three to six months to pay down revolving debt and dispute any errors. A higher credit score can save you thousands over the life of a loan. Also calculate your debt-to-income (DTI) ratio.
Quick tip: Avoid opening new credit cards or making large purchases in the months leading up to your home purchase. Any major change to your credit profile can affect your mortgage eligibility.
Step 2: Determine How Much Home You Can Afford
A common rule of thumb is to keep your monthly housing costs including principal, interest, taxes and insurance at or below 28% of your gross monthly income. But your personal comfort level matters too. Factor in not just the mortgage payment, but also things such as property taxes, homeowners’ insurance, maintenance and repairs and utilities. Use a mortgage calculator to run different scenarios with varying down payments and interest rates. This gives you a realistic target price range before you fall in love with a home that’s outside your budget.
Step 3: Save for Your Down Payment and Closing Costs
One of the biggest misconceptions among first-time buyers is that you need 20% down. While a larger down payment reduces your monthly payment, many loan programs require far less. Conventional loans can start as low as 3%. Some loans may even require zero down. Don’t forget closing costs, which typically run between 2–5% of the purchase price and include appraisal fees, title insurance, lender fees and prepaid taxes and insurance.
Howard Hanna’s First Time Homebuyer Initiative is specifically designed to ease this financial burden, offering programs in conjunction with FHA mortgages that allow borrowers to finance many closing costs. This makes ownership more accessible for buyers who haven’t owned property in the past three years.
Step 4: Get Pre-Approved for a Mortgage
A mortgage pre-approval is your golden ticket in today’s competitive market. It tells sellers you’re a serious, qualified buyer. It tells you exactly how much a lender is willing to lend. Pre-approval is not the same as pre-qualification. Pre-qualification is a rough estimate whereas pre-approval involves a full review of your income, assets, employment and credit history. Most sellers and their agents won’t entertain an offer without one. Howard Hanna Mortgage can help eliminate any stress. Our team is here to help you get ready and take a huge step as you prepare to own a home.
Step 5: Find a Howard Hanna Agent
A skilled buyer’s agent isn’t just a door-opener, they’re your advocate, your negotiator, your local market expert and your guide through every contract, inspection and curveball along the way.
Howard Hanna agents are deeply embedded in the communities they serve. They know which neighborhoods are up-and-coming, which streets flood in heavy rain, which school districts are most sought-after and which listings are about to go fast. That hyper-local knowledge is something no algorithm can replicate. Our agents are here to help ensure that the home-buying process goes smoothly for you. No matter what you’re looking for, our team will be there every step of the way to help.
Step 6: Start Your Home Search (Strategically)
Now comes the fun part but approach it with a plan. Before you start touring homes, make two lists: your must-haves and your nice-to-haves. Be honest about what you’re willing to compromise on. Location, number of bedrooms and commute time tend to be harder to change than cosmetics or finishes.
One of the biggest advantages of working with Howard Hanna is exclusive access to Find It First™. These listings are available only on HowardHanna.com before they appear on other real estate websites. In a competitive market, seeing homes before the crowd can be the difference between getting a showing and missing out entirely. Attend open houses, take notes and photograph everything. After a few weeks of searching, the details of different homes will start to blur together, but that documentation keeps you grounded.
Step 7: Make an Offer
You’ve found the one. Now what?
Your Howard Hanna agent will help you craft a competitive offer based on comparable sales in the area, the condition of the home, how long it’s been on the market and current market dynamics. In a seller’s market, you may need to come in at or above asking price. In a buyer’s market, there may be room to negotiate. Your offer will include: the purchase price, earnest money deposit, contingencies for financing, inspection and appraisal and a proposed closing date.
Your agent’s negotiation skills come into sharp focus here. Howard Hanna agents are trained to advocate for your best interests while keeping the deal intact, a balance that takes years of experience to get right.
Step 8: Schedule a Home Inspection
Never, ever skip the home inspection. Even in a hot market where some buyers waive it to sweeten their offer. A licensed home inspector will evaluate the property’s structure, roof, electrical systems, plumbing, HVAC and more, giving you a detailed report of any issues.
If significant problems are uncovered, you have options: you can ask the seller to make repairs, request a price reduction, or in the most serious cases, walk away entirely assuming you have an inspection contingency in place.
Even a clean inspection gives you peace of mind and a punch list of smaller items to address after you move in. The cost, typically $300–$600, is one of the best investments you’ll make in this process.
Step 9: Navigate the Closing Process
After your offer is accepted and inspection complete, you’ll enter the closing phase. This typically lasts between 30 and 45 days. During this time, your lender will order an appraisal to confirm the home is worth the purchase price. The title company conducts a title search to ensure there are no liens or ownership disputes. You’ll complete a final walkthrough of the property before closing day and receive a closing disclosure at least three business days before closing, outlining all final loan terms and fees.
Howard Hanna’s integrated title and mortgage services help streamline this phase significantly. When your real estate agent, lender and title company are all working within the same ecosystem, communication is faster and fewer things fall through the cracks.
On closing day, you’ll sign a stack of documents, pay your closing costs, and finally receive the keys to your new home.
Step 10: Protect Your Investment After Closing
Congratulations! You’re a homeowner! But the journey doesn’t end at the closing table.
In the weeks after closing, make sure to:
- Change the locks on all entry points
- Update your address with the post office, your employer, your bank and any subscriptions
- Set up a home maintenance fund for expected and unexpected repairs
- Review your homeowner’s insurance policy and confirm coverage is active
Howard Hanna also offers home warranty and insurance services to give new owners added protection and peace of mind after purchase. You’ve made a major investment. It makes sense to protect it from day one.
Ready to Start? Howard Hanna Is With You Every Step of the Way
Buying your first home is a big deal, and you deserve a team that treats it that way. Howard Hanna has been family-owned for nearly 70 years, and our commitment to buyers hasn’t changed: expert guidance, local knowledge and a genuine investment in your success, not just your transaction.
Whether you’re just beginning to explore neighborhoods or ready to make an offer, find a Howard Hanna agent near you and take the first step toward the home that’s waiting for you.
About Howard Hanna
Howard Hanna Real Estate Services proudly provides real estate, mortgage, title, and insurance services across 15 states. As the largest family-owned and -operated real estate brokerage in the United States, Howard Hanna operates more than 500 offices with 15,000 sales associates and staff. The company’s proprietary Hanna Success System helps its agents achieve 53% more business than agents at the top 1000 brokerages nationally. Learn more at www.HowardHanna.com.
