Buying a new home is an exciting milestone, but the process can seem overwhelming, especially for first-time buyers. Understanding what happens at each stage can help you avoid surprises, make informed decisions, and enjoy a smoother journey to homeownership.

Whether you’re purchasing a newly completed home or having one built, knowing what to expect can make the experience less stressful. Here’s a step-by-step guide to help you navigate the process from mortgage pre–approval to move-in day. 

Get Pre–approved for a Mortgage 

Before shopping for a home, meet with a mortgage lender to determine how much you may qualify to borrow. The lender will review your income, credit history, debts, and savings. 

Pre-approval helps establish your price range and shows builders and sellers you’re a serious buyer. However, qualifying for a certain amount doesn’t necessarily mean you should spend that much. Consider property taxes, insurance, utilities, and other monthly expenses when setting your budget. 

Choose Your Builder and Community 

Research builders, compare neighborhoods, and visit model homes. Look beyond attractive floorplans and finishes. Ask about the builder’s reputation, construction quality, warranties, and customer service. 

Pay special attention to energy efficiency. Homes independently verified through programs such as BUILT TO SAVE® or ENERGY STAR® can provide added confidence that important energy-saving features have been properly installed and tested. 

Also consider location, school districts, commuting distances, and future development in the area. 

Select Your Home and Review the Contract

Once you’ve found the right home, review the purchase agreement carefully before signing. 

The contract should identify the purchase price, deposit requirements, included features, estimated completion date, and conditions for canceling the agreement. 

If you’re building from the ground up, make sure you understand which upgrades are included and which cost extra. Ask how construction delays, changes, and unexpected expenses will be handled. 

Finalize Your Mortgage Application

After signing the purchase agreement, complete your formal mortgage application. Your lender will verify your financial information and explain available loan programs, interest rates, and closing costs. 

Compare the Loan Estimate from your lender with other offers when possible. 

Avoid opening new credit accounts, making large purchases, or changing jobs without discussing the potential impact with your lender. These changes could affect your loan approval. 

Follow Construction and Schedule Inspections

If your home is under construction, stay informed about its progress. Ask your builder about scheduled inspections and opportunities to visit the property. 

Local building inspections check compliance with applicable construction codes. However, code compliance alone doesn’t necessarily verify that a home will perform as efficiently as intended. 

Independent inspections and performance testing through programs such as BUILT TO SAVE® can help confirm that insulation, air sealing, and other energy-saving features meet the program’s requirements. 

Complete the Appraisal and Final Loan Approval

Your lender will typically order an appraisal to determine whether the home’s value supports the loan amount. 

The lender will also complete underwriting, reviewing your credit, income, assets, property information, and other requirements before issuing final approval. 

Respond promptly to requests for additional documents to help prevent delays.

Conduct Your Final Walkthrough

Before closing, walk through the completed home with your builder. Check appliances, plumbing fixtures, doors, windows, electrical outlets, heating and cooling systems, and other features. 

Document unfinished work or problems and agree on how they will be corrected. Review your builder’s warranty and learn how to request service after moving in.

Close on Your Home

At closing, you’ll sign the final loan and ownership documents and pay any remaining down payment and closing costs.

Review your Closing Disclosure beforehand to confirm your loan terms, monthly payment, and closing expenses. For most mortgages, you must receive this document at least three business days before closing.

Once the transaction is completed and possession is authorized, you’ll receive the keys to your new home.

Prepare for Move-In Day

Arrange utility connections, update your mailing address, and schedule your move. Keep copies of your closing documents, warranties, appliance manuals, and important builder contacts. 

Before settling in, locate your home’s main water shutoff, electrical panel, and heating and cooling equipment.