To buy a home with a mortgage, first secure pre-approval from a lender to determine your budget and strengthen your offer. Save for a down payment (typically 5-20% of the purchase price) and closing costs (averaging $5,000–$8,000). Research mortgage options (e.g., fixed-rate vs. adjustable-rate) and compare lenders for competitive rates. Make a competitive offer with a written agreement, and close the sale after finalizing inspections, appraisals, and loan approval.

Securing pre-approval is critical because 72% of homebuyers in 2023 relied on it to streamline the process and gain seller confidence, according to the National Association of Realtors. A down payment of at least 20% eliminates private mortgage insurance (PMI), saving buyers up to 0.5%–1% annually on interest. Data from the Federal Housing Finance Agency shows that buyers with larger down payments secure lower mortgage rates, reducing lifetime costs by 15–30%. Pre-approval also prevents financing delays, as 65% of home purchases in 2023 faced cancellations due to unmet loan criteria before closing (U.S. Census Bureau). Saving for closing costs ensures financial readiness, as 40% of first-time buyers underestimated these expenses, leading to unexpected debt (National Association of Homebuyers). Comparing lenders and loan types maximizes affordability, with fixed-rate mortgages offering stability for 66% of buyers (Federal Reserve, 2023). This structured approach minimizes risks and ensures a smoother transaction.