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Learn about real estate agents, your home search, and more.

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  <div class="learn">
<p class="learnfont"><strong>What You’ll Learn</strong></p>

<p class="learnfont">How to prepare for your home search ahead of time</p>

<p class="learnfont">How to determine your wants and needs lists and narrow down location</p>

  <p class="learnfont">What aspects and features to consider when touring a home</p>

  </div>
  <br><br>

  House hunting is hands-down the most exciting stage of the homebuying process, but it can also be one of the most nerve-wracking. You probably have some idea of the things you need in a home, the things you want in a home, and things you absolutely don’t want in a home. But when you tour a home in person, it’s easy to lose focus or pay attention to the wrong details.

There are typically two ways to see a home that’s on the market: attend an open house or schedule a private tour. In some instances, you may also have the opportunity to do a virtual tour of the home—which can be a useful alternative if you're unable to attend in person. 

As the name suggests, an open house is an open invitation for anyone to show up and inspect a home during set hours. A listing agent will be there to field questions and give interested parties more information on the home. Private tours are usually set up with the listing agent or your own [real estate agent](https://better.com/find-an-agent). When a home really catches your eye, it’s typically better to schedule a private tour so you can take your time asking questions and take any measurements and photos. 

This guide will help you focus your thoughts and stay organized as you prepare for home tours, so you can make informed decisions and place an offer with confidence.

<h2>How to prepare for a home tour</h2>

<h3>First things first: Find out how much home you can afford</h3>

Before you start browsing listings, let alone touring homes, you should have an idea of what you can afford. To avoid getting your heart set on a home that’s out of your financial reach, spend a little time with a [mortgage affordability calculator](https://better.com/content/a-better-home-affordability-calculator/). These kinds of tools can help you confirm hypothetical home loan amounts, purchase prices, monthly mortgage payments, and whether you have enough in down payment savings.

<h3>Pro tip: Come prepared with a pre-approval letter</h3>

Confirm your eligibility for a home loan by going through [the pre-approval process](https://better.com/content/what-is-a-mortgage-pre-approval/). (FYI: it takes as little as 3 minutes with Better Mortgage, and it doesn’t require a hard credit check.) A pre-approval letter will provide you with a more accurate estimate of how much you’ll be able to borrow once you meet your lender’s conditions. Pre-approval letters can also add leverage to any home purchase offers, because they show agents and sellers that your offer is serious and you’ve already done the legwork to secure future financing.

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<h3>Make a list of your “needs” vs. your “wants”</h3>

Once you have an idea of what you can afford, it’s time to think about what your ideal home looks like. Start by making a concrete list of the things you absolutely need. 

Perhaps you require a certain number of rooms to accommodate your family, work, or lifestyle. For example, you know you’ll need three bedrooms for your growing family, or an extra room to serve as a home office because your company’s going remote. Understanding your must-haves will help you narrow down your home search so you won’t waste time touring houses that aren’t quite right.

Next, make a list of your wants—the features and things that may be nice to have but you could live without. These might include things like yard space, new appliances, or a fireplace. In other words, they’re things you picture in your dream home, but you could live without them. These will come in handy to weigh the pros and cons of similar properties. 

If you’re having trouble determining a need vs. a want, think about whether the feature would be easy and affordable to change once you move in, or whether it would be impractical or prohibitively expensive. For example, adding a dishwasher is a relatively small and inexpensive project compared to adding a garage. So, if your heart is set on a garage, you might consider that a need. 

If you’re looking at home listings online, they’ll likely have different criteria you can use to filter listings. If you’re working with a real estate agent, talking to them about your needs and wants will help them find properties that may work for you. 

<h3>Location, location, location</h3>

There’s a reason why “location, location, location” is such a common refrain in real estate. The address of your home can play a significant role in its appreciation as an investment. And if you plan on living in the home for even a short period of time, you want to make sure it’s somewhere you’re comfortable spending time. Before deciding on a location, it’s worth considering:

- <strong>Lifestyle and preferences:</strong> Are you looking for a home in a quiet suburb or a condo in a walkable downtown area? Do you want an acre of land, or do you want to avoid lawn maintenance altogether? Are you comfortable with a house on a main road, or would you prefer something more tucked away? Having some basic lifestyle criteria will help narrow your search.
- <strong>School district:</strong> If you have kids or plan to have a family in the future, school districts might be a major factor in your home search. Not only can schools affect your kids’ education experience, but they can also [affect property values](https://better.com/content/how-do-school-districts-affect-homebuying/).  
- <strong>Property taxes:</strong> Take a look at the last decade of [property taxes](https://better.com/content/how-to-calculate-property-tax-on-a-house) for the counties where you’re thinking about touring homes to get an idea of how  your property taxes may change over time. Increases in property taxes may not be a bad thing—often, it’s a sign of growth, improvement, and more services and resources for residents. Just be sure to consider the costs in your [budget](https://better.com/content/how-to-budget-for-your-monthly-mortgage-payment/).
- <strong>Neighborhood and surrounding areas:</strong> Do your research to learn about overall livability ratings for categories like crime, amenities, and walkability. Consider driving around any areas you’re considering to see how well-kept homes, streets, and local parks are. 
- <strong>Future zoning and infrastructure:</strong> Ask your real estate agent and/or the listing agent what they can tell you about any major changes planned for the area. Are there major development or infrastructure projects planned? New developments can mean increased traffic, but they might also mean increased property values. 

Considering these location factors can help give you a clearer picture of where you’ll want to live. 

<h2>Tips for touring a home</h2>

Now that you have nailed down some important criteria for finding the perfect home, it’s time to start seeing some properties.

A home tour is your best chance to ask questions and see if the property fits your needs. Here are some important things to think about as you’re touring homes: 

<h4>What to consider during the home tour</h4>

<strong>Structural condition, utilities, and HVAC</strong>

As you walk through a house, keep an eye out for any major cracks in the walls, floors, and ceilings. Structural damage, roofing, and HVAC systems are expensive fixes, so don’t be afraid to ask about any significant issues or renovations that may have occurred. 

<strong>Water damage and smells</strong>

Look out for signs of water damage or mold, which may indicate a moisture problem. Water damage can lead to significant structural problems and can be very difficult (and expensive) to fix. You’ll also want to take notice of any strong odors from smoke or pet urine, which can be persistent and difficult to remove entirely. 

<strong>Storage space</strong>

You’ll likely notice if there are plenty of closets, cabinets, and other storage areas, but it can be easy to overlook their absence. If you’ll need to add dressers or other storage, they can take up significant space in a room, so it’s good to keep in mind when you’re visualizing how you’ll use a space. 

<strong>Parking </strong>

Homes in a city or downtown area may not always come with designated parking spots. If you commute or otherwise use your car often, you’ll want to find out what the parking situation is like and if there’s street parking or other parking options available. Parking can get competitive quickly in more densely populated areas. On the other hand, neighborhoods with ample parking may have regulations about street parking which is something to consider if you like to entertain. 

<strong>Don’t get caught up on the small things</strong>

It’s easy to get distracted by dated appliances, paint or wallpaper that doesn’t match your taste, and other cosmetic details. Keep in mind that many of the things that will catch your eye during a home tour are fairly simple and relatively inexpensive to change. The bones of the house and utility systems are far more important to consider for the long term than the shag carpeting that can be easily removed. 

<h2>Update your must-haves</h2>

As you visit more homes, you might find new things you’re willing to compromise. Don't be afraid to update your wants and needs as you go. You may decide that you can’t deal with a small kitchen afterall, and that’s okay. Touring homes is a learning experience. 

<h2>What happens next?</h2>

Whether it takes one house tour or dozens, there’s no doubt that finding “the one” is an exciting experience.

Before you jump into an offer, take time to review your wants and needs list. If you can, walk the area during different times of day to get a sense of traffic, lighting, and noise. If you have the opportunity, talk to your potential neighbors to introduce yourself and ask questions about the area. 

You’ll also want to make sure “the one” works with your budget. While the asking price might fit into your pre-approved limit, there are other factors that can affect affordability like homeowners association fees, homeowners insurance, taxes, and utilities. 

When you’re ready to put in an offer, talk to your real estate agent to see if there are other contenders and what those offers might look like. Asking about recent sales of comparable homes (comps, for short) can give you an idea of how competitive the market is in that area. Your real estate agent can help you answer any questions and submit a [competitive offer](https://better.com/content/home-by-summer-june-to-dos-make-a-competitive-offer/).

Ready to start your home-touring journey? [Get pre-approved for a mortgage](https://better.com/preapproval/786066c2-f873-4c65-a64c-0cc34202d7f6) today, so you’ll be ready to put in an offer when the perfect house comes along.

<h2>Frequently Asked Questions About Touring a Home</h2>

<strong>Question:</strong> How should I prepare before touring homes?
<strong>Answer:</strong> Before touring homes, it's essential to understand what you can afford. Use a [mortgage affordability calculator](https://better.com/how-much-house-can-i-afford) to get an idea of your budget. Additionally, obtaining a pre-approval letter can provide a more accurate estimate of how much you can borrow and add leverage to your offers.

<strong>Question:</strong> What's the difference between an open house and a private tour?
<strong>Answer:</strong> An open house is an open invitation for anyone to inspect a home during set hours, usually with a listing agent present to answer questions. A private tour is arranged with the listing agent or your real estate agent, allowing for a more detailed inspection and questions.

<strong>Question:</strong> How do I differentiate between my "needs" and "wants" when looking for a home?
<strong>Answer:</strong> Your "needs" are essential features that accommodate your family, work, or lifestyle, such as the number of bedrooms. "Wants" are nice-to-have features like new appliances or a fireplace, which you could live without. Consider whether a feature is easy and affordable to change after moving in to help differentiate between the two.

<strong>Question:</strong> Why is location important when choosing a home?
<strong>Answer:</strong> [Location](https://better.com/content/how-to-choose-the-right-neighborhood-when-buying-a-house) can significantly impact a home's appreciation and your comfort living there. Consider your lifestyle preferences, school districts, property taxes, and the neighborhood's overall livability. Future zoning and infrastructure changes can also affect the area's desirability.

<strong>Question:</strong> What should I pay attention to during a home tour?
<strong>Answer:</strong> Look for signs of structural damage, water damage, or mold, as these can be costly to fix. Assess the storage space, parking situation, and don't get too caught up in minor cosmetic details that can be changed easily. Focus on the home's overall condition and utility systems.

<strong>Question:</strong> Can I update my list of "needs" and "wants" after touring homes?
<strong>Answer:</strong> Absolutely. Touring homes is a learning experience, and you may discover new preferences or deal-breakers. Don't hesitate to update your list as you gain more insight into what you're looking for in a home.

<strong>Question:</strong> What steps should I take after finding a home I'm interested in?
<strong>Answer:</strong> Review your wants and needs list and consider the home's affordability, including additional costs like homeowners association fees and taxes. Walk the area at different times to gauge traffic and noise, and talk to potential neighbors. Consult with your real estate agent about the market and submitting a competitive offer.

<strong>Question:</strong> How can I ensure my offer stands out in a competitive market?
<strong>Answer:</strong> A verified approval letter can make your offer more attractive. Discuss with your real estate agent about the competition and how recent sales of comparable homes may influence your offer. Your agent can guide you in [crafting a competitive offer](https://better.com/content/how-to-make-an-offer-on-a-home) that aligns with market conditions.

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Touring homes is an exciting part of the home purchase journey. Here’s a guide to help you tick all the (not-so-obvious) boxes to find your dream home.

What to Look for When Touring a Home

Blog post image for What to look for when touring a home

What to look for when touring a home

![Illustration of a house, coins, clock, and calendar on steps.](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fd6af5e86470a4592b48b5b8eb0f50443)

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You’ve finally decided you’re ready to buy a house after months or even years of deliberating. Well, now what? For many people, buying a home can be an exciting experience, especially if you’re a first-time homebuyer. Every stage takes you closer to your goal, from [checking your credit score](https://better.com/content/home-buying-process-timeline) to finding the perfect home and making an offer. A lot of work goes into the entire process, but it helps when you know the steps to buy a house. After all, it is a big purchase that requires a lot of planning.

To make things faster and simpler for you, here are the steps to buying a home: 

## 1. Get your finances in order

The easiest way to get off to a good start is by getting your finances in order. Your credit score is a core element of your financial health, and improving it is necessary if you want to qualify for competitive loans. A good credit score signals that you are more trustworthy, which could help lower the interest rates you qualify for. The higher your credit score, the better your interest rate options. You can kick off homebuying on a good foot by:

- __Working to improve your credit score__
Lenders look for a positive credit history to determine your eligibility for a mortgage. A solid credit score plays a crucial role in your interest rate options. You’ll not only improve your chances of approval by boosting your credit score but also get better rates on your mortgage, which can help you save more money.

- __Saving for your down payment__
Once you have an estimated purchase price of the home you wish to buy, you can start saving for your down payment. Remember to make a budget that’s easy to stick to every month. Many potential homebuyers believe that 20% is the "standard" down payment amount. However, you can get a mortgage with as little as [3–5% down](https://better.com/content/how-to-find-mortgage-loan/). 72% of first-timers end up putting down less than 20%.

- __Determine your monthly income and budget__
It's essential to put a finger on how much money enters your bank account every month, especially if you have multiple revenue streams. This will help give you an idea of how much you could reasonably afford to pay towards your mortgage each month. You can play around with a [mortgage calculator](https://better.com/mortgage-calculator-with-taxes) to see how monthly payments change based on a home's price.

- __Gathering necessary documents that will be used throughout the homebuying process__

## 	2. Calculate your budget for a house using a home affordability calculator

Fully understanding your finances can help you budget correctly, which is essential when buying a home.

An [affordability calculator](https://better.com/content/a-better-home-affordability-calculator/) can be a valuable tool in estimating your monthly mortgage payments and can give you a better understanding of how much you should expect to spend. It's a great way to get a benchmark of how much to save for your down payment, and start to narrow down where to kick off your home search.

## 3. Get pre-approved

Did you know getting pre-approved can make the buying process a lot smoother? A mortgage pre-approval is a letter that gives you an estimate of how much you can borrow for your future home; it does an assessment on your financial picture and in turn gives you a sense of how much you can truly spare. [Getting your pre-approval](https://better.com/content/tips-for-first-time-home-buyers) with [Better Mortgage](https://better.com/mortgage-rates/purchase/) won't affect your credit score and can be done in as little as 3 minutes. Most sellers or real estate agents require a pre-approval to see a home as an indication of buyer intent and affordability; as a result you should consider a pre-approval letter as one of the many things needed to buy a house.

With a free, no-commitment pre-approval letter, you'll have more confidence searching and a competitive edge when making an offer. Agents are more likely to take you seriously if you show up at an open house with a pre-approval letter, which can give you more leverage in your home search.

## 4. Search for homes within your budget

One of the essential steps to buying a home is finding one that fits within your budget but still meets your needs. Tips you might want to keep in the back of your mind are:

- __Find a real estate agent who can walk you through the process and save you money__
Real estate agents can make your search easier because they are more familiar with properties in the area and can offer a lot of guidance when selecting the perfect home. Not only can [Better Real Estate](https://better.com/agents) pair you with a local professional, but you can also [save up to $2,000](https://better.com/faq/rates/whats-the-fine-print-better-real-estate) on closing costs if you work with Better Real Estate and fund with Better Mortgage*. 

- __Choose which neighborhood you want to live in__
Pay attention to your home location and what amenities are readily available to the residents in the area. Think about factors like safety, price range, and if you’re a parent, school districts.

- __Identify what type of home you’re considering__

The home in which you live is as important as the neighborhood. A list detailing the [different types of houses](https://better.com/content/how-to-choose-between-different-types-of-houses/) and the pros and cons to each may come in handy here. You should consider asking yourself some big questions such as, would you be willing to participate in a homeowner’s association if you moved into a condo? If you buy something vintage, do you have a budget to carry out any necessary repairs that arise? Or would you rather opt for something more modern?

## 5. Make an offer on a home

A real estate agent’s job isn’t limited to showing you potential houses. While showing you different options that suit your taste and fall within your budget is an integral part of the job, they can also protect you from common pitfalls when you are ready to [make an offer](https://better.com/content/how-to-make-an-offer-on-a-home/).

Making an offer is one of the necessary steps to buy a home. By submitting an offer you’re indicating your interest in buying a home, and your agent can be a great help here. As it’s the first step in kicking off the purchase, you don't want any mistakes because it's an important document that lays out your offer price and terms. [Better Real Estate Agents](https://better.com/realestate) are excellent guides that can help you through your home buying journey, and help make a plan for possible situations that might come up during the offer and negotiation stages. Once the seller accepts you’ll need to secure financing in the next step.

## 6. 	Submit your mortgage application

Once your offer is accepted, you can formally start the mortgage application process. At this stage you’ll need to determine which loan product would be best suited for your needs, the length, and rate that meets your budget. For example, depending on your needs, you might prefer a fixed- or adjustable-rate mortgage. After selecting your loan type, rate, and term, the next step is to [lock in your interest rate to move forward in the application process](https://better.com/content/should-i-lock-my-mortgage-rate-today/).

Better Mortgage allows you to view all the rates you qualify for and you’re able to lock 24/7 when it makes sense for you. Once you’re locked you’re ready to move into loan processing and can start [uploading any required documentation](https://better.com/content/12-questions-to-ask-when-buying-a-house) so we can get you to closing (PS — we help borrowers close up to 10 days faster than the industry average).

## 7. Enter the loan processing phase

Once the completed loan application is submitted, it moves into loan processing. Typically, the lender will send you a list of required documents, personal tax returns, bank statements, and then conduct a hard credit check. Each of these are needed before your loan is reviewed by an underwriter who will determine whether your mortgage is approved. 

At the loan processing, you’ll need to submit the proper documents to proceed into underwriting and closing. You usually have to pay certain fees, but Better Mortgage never charges origination or underwriting fees. Loan processing typically involves:

- An appraisal and home inspection: The lender will order an appraisal to assess the value of the home and ensure the mortgage does not exceed the value of the home. The inspection is meant for you, as the buyer, to identify any issues with the home that would require repair or could be a costly issue in the future.

- Title and home insurance: At this stage, your title company will look over the history of the property and resolve any title issues including unpaid bills and settling owner disputes. After that, you can purchase homeowners insurance to protect you from damages and losses. Transferring ownership and setting up insurance take about 1–2 weeks.

- Underwriting: This step is the final process where the lender decides on approving your mortgage.

## 8. Closing
Congratulations! You made it through the previous steps. On closing day, you'll sign all of the documents in the closing package. A short time later, your lender will fund your loan after you've made any required down payments or closing costs (in the form of a cashier's check or bank wire). Once that is done, and your agent confirms your lender has made a deposit, your home purchase will officially be complete and you’ll get the keys!

You can speed up the arrival of the closing day at Better Mortgage. As a digital lender we make the entire process faster, with an average closing time of only 32 days — 10 days faster than the industry average.

Buying a home is a big accomplishment, and having the correct information can make it all the more exciting. Better Mortgage guides you and makes the process of buying a home simpler. Our support staff is dedicated to helping you at every stage of the buying process, whether it be sorting your finances, coordinating with Better Real Estate to get you matched with a real estate agent, or funding your mortgage. [Get started on buying a house today.](https://better.com/start)

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Discover the 8 steps to buying a home with ease. This complete guide helps first-time buyers navigate the process confidently, from search to closing.

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