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
Caveat: Photos and online descriptions can sometimes be misleading. Use this stage to get inspired, but don't get attached until you've seen properties in person.

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
Caveat: The lower the down payment, the higher your monthly payment and PMI costs. But don't let the 20% myth stop you from starting.

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
Caveat: Shorter contingencies = stronger offer, but you take on more risk.

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:

  1. Earnest Money Deposit (EMD): Typically 3% of purchase price due within 72 hours. Shows you're serious.
  2. Disclosures Review: Seller-provided reports about the property must be signed within 24 hours.
  3. 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
Caveat: Every deal is unique. A cooperative seller and responsive lender can speed things up, while title issues or inspection problems can delay closing.

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.