What Are the First Steps to Buying a House?

Updated February 2026

If you’re thinking about buying a house, the process can feel like a maze made of mortgage terms, paperwork, and Zillow tabs you can’t seem to close. The good news is that the actual first steps of buying a home are clear, straightforward, and totally doable. Here’s how to move from “Where do I even start?” to “I just got my keys.”

Step 1: Check Your Financial Foundation

Before you look at a single house, the smart first move is understanding your current financial picture. That includes:

Your credit score
Monthly income and expenses
Savings available for down payment and closing costs
Existing debts
Your comfort zone for a monthly payment

You don’t need perfect credit or 20% down to buy a home. But knowing where you stand gives you the roadmap for what comes next.

Pro tip: Many buyers underestimate how far their financial situation can take them. A quick review early saves surprises later.

Step 2: Get Preapproved by a Lender

This is one of the most important early steps. A mortgage preapproval gives you:

Your approved price range
A clearer estimate of monthly payments
Closing cost expectations
The ability to write a competitive offer

Sellers and listing agents take you seriously once you have a preapproval in hand.

When you talk to a lender, they’ll review:

Credit score
Income and employment
Debts
Down payment funds

You’ll walk away with your price range and loan options (FHA, Conventional, VA, USDA, WHEDA if you’re in Wisconsin).

Step 3: Choose the Right Real Estate Agent

Once you have a preapproval, partner with an agent who knows the local market. A good agent helps you:

Understand neighborhoods
Spot red flags
Identify pricing trends
Write strong offers
Navigate inspections and appraisals
Avoid overpaying

Buying a home is part logic, part strategy, and part timing. Your agent is the one who sees the whole board and helps you play it well.

Step 4: Create a “Must Have” and “Nice to Have” List

You don’t need a 40-point wishlist with quartz countertops and a three-season porch worthy of a magazine shoot. Keep it simple:

Must Have:

Price range
Location
Bedrooms/bathrooms
Yard size
Commute distance
School district (if relevant)

Nice to Have:

Extra flex room
Specific finishes
Walkability
Garage size
Updated kitchen or baths

This helps you stay focused when the market gets competitive or overwhelming.

Step 5: Start Touring Homes

This is where it gets real.

Your agent will set up:

MLS alerts
Private showings
Insights on new listings
Comparisons with recent sales

As you walk through homes, keep notes on:

What you love
What concerns you
What the home might need
How it compares to your “must have” list

Pay attention to the things you can’t change: location, layout, lot size, and neighborhood.

Step 6: Understand the Offer Process

When you find a home you want, your agent prepares the offer.

This includes:

Purchase price
Closing date
Inspections
Earnest money
Contingencies
Negotiation strategy

If you’re in a competitive market, your agent may suggest tactics like flexible closing dates, strong financing terms, or cleaner contingencies.

This is where preparation at Steps 1–3 pays off.

Step 7: Prepare for Inspections and Appraisal

Once your offer is accepted, two important things happen:

Home Inspection

A professional inspector reviews the property’s condition. They check:

Roof
Foundation
Plumbing
Electrical
HVAC
Safety concerns

You’ll get a full report and negotiate repairs if needed.

Appraisal

The lender confirms the home is worth the price you’re paying.
It’s a safeguard for the bank and you.

Step 8: Final Loan Approval & Closing

Your lender finalizes:

Underwriting
Documents
Loan conditions
Final disclosures

You’ll sign the closing paperwork, transfer the funds, and officially become the owner.

Keys in hand. Dreams unlocked. And a surprising craving to wander through Home Depot.

Quick Summary: First Steps to Buying a House

If you only remember five things, make it these:

Review your finances.
Get preapproved by a lender.
Choose a local real estate agent.
Define your must-have list.
Start touring homes and prepare to make an offer.

Everything else flows naturally from there.

Thinking About Buying a Home?

If you’re in Cross Plains, Dane County, or the greater Madison area, I can help you take these steps with clarity and confidence—without the confusion that usually comes with the process.

If you’d like, I can also put together a personalized home buying plan based on your budget, goals, and timeline.

Just tell me when you’re ready.

What are the First Steps to Buying a House?