What are the 5 stages of buying a home?

The five stages of buying a home are planning (setting your budget, determining your down payment), preapproval (getting preapproved for financing), searching (you’ll find a real estate agent and identify a property), negotiating (you’ll get an inspection and go back and forth with the seller), and finalizing (you’ll solidify your financing and go to the closing table).

Can I move in on closing day?

You can move in immediately once you close on a house, as long as your contract doesn’t stipulate a different occupancy date.

What are closing cost fees?

Closing costs are fees paid to the team that helps get you into your new home. These can include fees for the appraiser and title company, lender fees, and more. As a general rule, closing costs average 3% to 6% of your mortgage loan principal.

What are the 4 Cs when buying a home?

The 4 Cs of home buying are the things that a lender will consider when deciding whether to approve your home loan application and determining what interest rate and terms you qualify for. They are Capacity (ability to repay the loan), Capital (what funds are available to you, in the form of savings and other assets?), Collateral (what is the value of the property that will be the collateral for the loan?), and Credit (your credit scores and history).

Survey: What Is the Process of Buying a Home?

Q: What is the process of buying a home?

The process of buying a home starts with determining what you can afford and planning for a down payment, if you can afford one. Seeking mortgage preapproval can help you understand how much you might be able to borrow. Once you have a sense of your budget, working with a real estate agent can help you locate properties. If you find your sweet spot, you’ll make an offer, finalize your home loan, negotiate with the seller and, ultimately, close the deal.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

This article is not intended to be legal advice. Please consult an attorney for advice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

TLS 1.2 Encrypted

Equal Housing Lender

Received mail from us?

Received mail from us?