Finding a house you like can happen fast. What comes after the seller says yes takes a lot longer, and this is where many buyers get confused. There is escrow, the home inspection, the appraisal, the loan, and the title check. Most people never get a clear explanation of who does what, or when.
Here is the short version. After your offer is accepted, buying a home with a loan usually takes 30 to 60 days. It happens in four parts: the offer, the inspection and appraisal, the loan and title work, and closing day. This guide explains each step in simple words, so you always know what comes next.
How the Home Buying Process Works: 9 Steps From Offer to Keys
Step 1: Get pre-approved and set your budget
Everything starts with knowing what you can spend. If you need a loan, a lender checks your income, credit, and bank accounts, then gives you a pre-approval letter showing how much they are likely to lend. Paying cash? Ask your bank for a proof of funds letter instead. Either one shows sellers you are serious.
Then look at the full cost, which is more than the price. Here is what the usual ranges look like on a $300,000 home:
| What you pay | Usual range | On a $300,000 home |
| Earnest money | 1% to 3% of the price | $3,000 to $9,000 |
| Closing costs | 2% to 5% of the price | $6,000 to $15,000 |
| Home inspection | Flat fee | $300 to $600 |
Add your down payment if you are using a loan, plus money for moving and small repairs. If you put down less than 20% on a conventional loan, you will usually pay mortgage insurance too. With your letter and your budget in hand, you can start looking, and you will know what to offer when you find the right house. Many buyers go through this with a home buyer consultation first, so they walk into showings with a plan.
Step 2: Make an offer
When you find a house you want, you put your offer in writing. It is a contract, so the price is only one part of it. A good offer spells out:
- How much earnest money you will put down
- The date you want to close
- What stays with the house, like appliances and curtains
- Your contingencies, which let you cancel without losing your earnest money if something goes wrong, such as a bad inspection or, for loan buyers, a loan that falls through
Most buyers focus on the price, but the contingencies are what protect you, so read them carefully in the purchase and sales agreement before you sign.
Once the offer goes out, the ball is in the seller’s court.
Step 3: Negotiate and get an accepted contract
The seller has three choices:
- Accept your offer as it is
- Turn it down
- Send back a counteroffer with changes
One or two rounds of counteroffers are normal, and it is not always about price. Closing dates, repair credits, and included items come up a lot too.
Write this down: the day both sides sign the final version is called the effective date. Nearly every deadline in the contract counts from that day.
Right after that, you pay your earnest money, which is where Step 4 begins.
Step 4: Pay earnest money and open escrow
After the contract is signed, you pay your earnest money within a few days. This deposit shows you are serious, and a neutral third party holds it, like a title company or an attorney. That is what “opening escrow” means. If the sale closes, the deposit goes toward your down payment or closing costs. If you cancel for a reason your contract allows, like a failed inspection, you usually get it back. If you walk away for a reason it doesn’t allow, the seller may keep it.
Before you send money, call the escrow company on a number you found yourself and confirm the wiring instructions. Fake instructions are a common scam, and the money is very hard to recover.
Once your deposit is in escrow, you can move on to the inspection.
Step 5: Get the home inspection
Book your inspector as soon as the contract is signed. Your inspection window is usually short, often a week or two, and good inspectors fill up fast. Check your contract for the exact dates. A general inspection usually covers:
- The roof and attic
- The foundation and structure
- Plumbing and the water heater
- Electrical wiring and the panel
- Heating and cooling
If you can, go to the inspection in person. Walking through the house with the inspector for an hour will teach you more than the written report.
If the house was built before 1978, there is one more thing. Federal law says the seller must give you a lead paint disclosure and an EPA pamphlet, and you get 10 days to test for lead paint. You can waive that test, or you and the seller can agree on a different time, but it’s your choice to make. Once the reports are back, you will know if there is anything to talk about with the seller.
Step 6: Negotiate repairs
If the inspection finds problems, you can respond in a few ways, and the right one depends on how big the problem is.
The simplest is to ask the seller to fix the issue before closing. This works well when the problem is clear and easy to repair, like a leaking pipe. If you would rather pick your own contractor, you can ask for a credit instead, which means the seller gives you money at closing to cover the repair. For bigger or harder-to-price repairs, you can ask for a lower price that reflects the cost.
And if the problem is serious and you are still inside your inspection window, you can usually cancel the contract and keep your earnest money. Check your contract for the exact rules before you decide.
Don’t ask for every small thing. Sellers tend to respond better when you focus on safety, structure, and big repairs, and let cosmetic issues go.
- Safety and structure: roof, foundation, electrical, plumbing. Always worth raising.
- Big-ticket items: heating, cooling, water heater. Worth raising if they are near the end of their life.
- Cosmetic issues: scuffs, old paint, worn carpet. Usually better to let go.
Once you and the seller agree on what happens, put it in writing as part of the contract. With the house settled, the next piece is the money side, which is where the appraisal and the loan come in.
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Step 7: Appraisal, loan approval and title search
If you have a loan, your lender orders an appraisal to confirm the house is worth the price. If it comes in low, you can ask the seller to lower the price, pay the gap yourself, or cancel if your contract allows. The lender also reviews your finances, so send documents within a day or two and don’t open new credit.
At the same time, the title company checks public records for liens or ownership claims, then sets up title insurance, which protects you from old claims. Cash buyers skip the appraisal and loan but should still do the title search.
Step 8: Final walkthrough
A day or two before closing, walk through the house one last time to check that:
- The agreed repairs are finished
- Appliances, lights, and plumbing work
- Nothing was damaged or taken
If you have a loan, your lender must send you the Closing Disclosure at least 3 business days before closing. Compare it with your earlier Loan Estimate and ask about anything that looks different. Raise problems now, not at the closing table.
Step 9: Closing day and getting your keys
Bring a photo ID and any money you still owe, usually wired a day early after you confirm the instructions by phone. You sign the final papers, the funds are released, and the deed is recorded. Once that is done, the house is yours, and you get the keys.
Mistakes Buyers Make During the Process
Most problems come from the same few mistakes, and all of them can be avoided:
- Missing a deadline: contract dates are firm, and missing one can put your earnest money at risk.
- Changing your finances: a new car loan, a new credit card, or a job change before closing can put your loan approval at risk.
- Wiring money without checking: always call the escrow company on a number you found yourself first.
- Skipping the inspection to win: it saves a few days, but one hidden problem can cost thousands.
- Not reading the contract: every deadline and contingency is in there, and nobody else will read it for you.
Your Home Buying Journey Starts Here
Now you know what comes after the seller says yes, and what to watch out for along the way. The next step is making sure you feel confident doing it, whether you buy with an agent or on your own.
Something Different Real Estate created the Complete Buyer’s Blueprint to walk you through every stage of buying a home, from budgeting to closing day, so you always know what to do next. If you would rather talk about your own situation, you can book aone-on-one home buyer consultation and get your questions answered directly.
Not sure where to begin? Browse our full course list and pick the one that fits.
