How to Buy a House: 15 Steps in the Homebuying Process

We’ve broken down the homebuying process into 15 main steps: Call it a buying-a-house checklist. Each step includes choices to make and things to do. Some are stressful, some are pretty cool and some are, well, kinda annoying. But each gets you one step closer to your goal of homeownership.

Sure, there's being financially ready to buy a house (see Step 2 for that). But are you emotionally ready? Even if it's just going to be your starter home, you're making a big financial commitment and putting down some roots.

You'll want to think about your other goals for the next few years. Are you buying with a partner, and, if yes, are you on the same page when it comes to money? Is there any chance you'd need to relocate for work? Are you thinking of starting a family? These big-picture questions can add to the pros (or cons) of whether this is the right time to buy a house.

» MORE: What to expect when you're buying a house

Buying a house may be the biggest financial decision you'll ever make, so before you take the plunge, you want to be sure your finances are solid.

Using a home affordability calculator can help you determine your budget by taking into account your income, debts, location and down payment amount (more on down payments in a moment). You'll be able to see how your monthly mortgage payments might add up and how your finances could look as a homeowner.

This can be important for keeping your ambitions down to earth. You might be able to qualify for a sizable mortgage, but that doesn't mean you actually want to commit that much of your budget to housing.

» MORE: Calculate how much you might be able to borrow

Check your credit score, too. A higher credit score is the single most powerful way to earn a lower mortgage interest rate. Know the mortgage options for your credit score. If your credit score could use some work, it may be worthwhile to hold off on homeownership and see what you can do to build up your score.

When you've determined what you can afford, you can figure out how much you want to save for a down payment. You don’t need to put down 20% to buy a house; many homeowners opt to put down less. A smaller down payment requires less money upfront, but it means you'll have to pay mortgage insurance, which typically increases your monthly payment. The type of home loan you use also helps to determine the minimum down payment required.

If this is your first home or if you haven't owned a house in a while, you may also want to look into state first-time home buyer programs. Many offer financial help, including down payment assistance. And if you have a friend or family member who can afford it, you may also use gift money to increase your down payment. Rules about gift money vary by loan program.

» MORE: Use our mortgage calculator to estimate your payments