Buyer guide · the United States
Buying a home in the US, step by step
From pre-approval and buyer agreements to inspection, appraisal and closing.
CurrencyUS$ USDDefault unitsq ft; acres for lotsListingsMLS via brokeragesTypical down payment3–20%
How buying works
- 1Get pre-approvedA lender confirms how much you can borrow and at what rate.
- 2Sign a buyer agreementSince August 2024, MLS agents need a written agreement before touring, including how they’re paid.
- 3Tour and make an offerInclude earnest money and contingencies (inspection, financing, appraisal).
- 4Inspection and appraisalNegotiate repairs or credits; the lender orders an appraisal.
- 5Underwriting and titleTitle search, title insurance and final loan approval.
- 6CloseSign, fund and record the deed; get the keys.
Costs to budget for
Closing costsLender, title, escrow and recording feesCommonly 2–5%
Property taxesSet locally; often paid through escrowVaries by county
HOA duesCondos and planned communitiesMonthly
Homeowners insuranceRequired by lendersAnnual
PMIConventional loans with under 20% downMonthly
Transfer taxesSome states and citiesVaries by state
Who can buy
AllowedCitizens & residentsAny property type.
Generally allowedForeign buyersMost states allow it; financing and tax (FIRPTA on resale) differ.
Restricted in some statesCertain foreign nationalsSome states restrict purchases near military sites or by nationals of specific countries.
Documents to check
- Seller’s disclosure — known defects
- Lead-based paint disclosure — homes built before 1978
- HOA documents — rules, budget, reserves
- Inspection report
- Title commitment — and survey
- Closing Disclosure — 3 days before closing
Terms you’ll see on listings
- MLS
- Multiple Listing Service — the brokers’ shared listing database.
- Earnest money
- Good-faith deposit held in escrow.
- Contingency
- Condition that lets you exit the contract.
- Escrow
- Neutral party holding funds and documents.
- HOA
- Homeowners association that charges dues.
- Pending
- Under contract; not yet closed.
Recent rule changes
Aug 2024Buyer agreements & commissionsMLS participants must have written buyer agreements before touring; offers of compensation are no longer shown on the MLS.
OngoingState foreign-ownership lawsSeveral states have added restrictions on certain foreign purchasers — check the state before you offer.
General information, not legal, tax or financial advice. Rules change — confirm with a qualified professional. Last reviewed [DATE].