There's a lot of noise out there (20% down, bidding wars, fast timelines), and my goal is to help you understand the real process in plain English. Below, I'll walk you through each stage of buying a home, from browsing on Zillow to becoming the official owner with keys in hand.
Step 1: Start Your Search Online (Timeline: Anytime)
Most first-time buyers begin their journey browsing online platforms like Zillow, Redfin, or Realtor.com. This stage is all about getting familiar with the market:
- What price ranges look realistic in the neighborhoods you like
- What type of property (condo, single-family home, TIC, multi-unit) feels right
- How fast homes are selling
Step 2: Find an Agent You Like and Trust (Timeline: 1–2 weeks)
Once you're serious, the most important relationship in your home search is with your real estate agent. A good agent will:
- Educate you on neighborhoods, values, and market conditions
- Help you identify red flags in homes and disclosures
- Strategize how to write competitive offers
This should feel like a partnership—you want someone who advocates for you, listens, and communicates clearly.
Step 3: Talk to a Lender and Get Pre-Approved (Timeline: 1 week)
Before touring seriously, you'll want to get pre-approved with a lender. This means the bank reviews your finances (credit, income, debt, assets) and tells you:
- What loan amount you qualify for
- What monthly payment looks like
- What down payment options are available
Myth vs. Reality: Down Payment
You may have heard you must put 20% down. Not true. Here are typical options:
- 3% down: Certain first-time buyer programs (usually personal residence)
- 5% down: Most common for owner-occupied homes
- 15% down: Minimum for investment properties
- 20%+ down: Standard to avoid private mortgage insurance (PMI), or to be more competitive
Step 4: Tour Homes and Write an Offer (Timeline: Ongoing, offer prep 1–2 days)
Once you've found a place you love—and your agent agrees it's a good fit—it's time to draft an offer.
Your agent will structure it based on:
- Price (your offer amount vs. list price)
- Timeline (how quickly you can close)
- Contingencies (buyer protections we'll cover below)
- Who pays what (closing costs, broker fees)
Step 5: Negotiating (Timeline: 1–3 days)
This is where both sides weigh variables:
Sellers care about:
- Total money they'll walk away with
- Certainty of closing (cash vs. financing)
- Timeline (shorter = better in hot markets)
Buyers care about:
- Out-of-pocket costs (ideally seller pays closing costs)
- Timelines (standard = 30 days; SF sellers often prefer shorter)
- Contingencies
Common Contingencies:
- Inspection: Ensure the home is in good condition
- Appraisal: Bank verifies the property is worth what you're paying
- Loan: Your financing officially comes through
- Insurance: Home can be covered at a reasonable cost
- Title: No legal disputes about ownership
Step 6: Escrow Period (Timeline: 14–30 days)
Once an offer is accepted, you're said to be "in contract" or in escrow. Here's what happens next:
- Earnest Money Deposit (EMD): Typically 3% of purchase price due within 72 hours. Shows you're serious.
- Disclosures Review: Seller-provided reports about the property must be signed within 24 hours.
- Contingency Periods:
- Loan contingency: 14–18 days is common in SF
- Inspection contingency: Usually 7–10 days
- Cash buyers: Can close in as little as 3 days
Step 7: Final Steps to Closing (Timeline: Last 3–5 days before close)
- Closing Statement: Title company outlines who pays what (down payment, fees, taxes).
- Notary Appointment: A notary meets you at home or office to sign final loan and closing docs.
- Title & Deed Transfer: Title company records ownership with the city.
- Funds Transfer: Down payment + loan funds are wired to complete the purchase.
Once the deed is recorded, you're officially the homeowner 🎉—time to get the keys!
Typical Timeline (San Francisco Market Example)
- Online search: Ongoing
- Agent selection: 1–2 weeks
- Pre-approval: 1 week
- Touring & offer: Variable
- Negotiation: 1–3 days
- Escrow: 14–30 days (shorter preferred in SF)
- Closing: Final 3–5 days
Final Thoughts
Buying your first home doesn't need to feel like decoding a foreign language. With the right agent, lender, and game plan, the process is straightforward. You don't need 20% down to get started, and you'll learn along the way.
Disclaimer
This blog post is for informational purposes only and reflects the perspective of a real estate professional. It is not legal, tax, or financial advice. Always consult with a qualified lender, attorney, or accountant for guidance specific to your situation.