Purchasing a home isn't the easiest thing in the world. Luckily we are here to give you some tips and help you in the process of buying your home. Here are the first steps of the home buying process Build a good credit history and improve your credit score (Higher credit score = lower interest rate). Get mortgage pre-approval. Find out what type of mortgages you qualify for. Set aside some money for the home inspection. Save up for the down payment (typically 10-20% of the property's value; if FHA-qualified, then possibly less, up to 3.5%). Consider closing costs which can include taxes, attorney's fees, and transfer fees (typically the closing costs are between 2-5% of the purchase price, there is possibly less if the finance term is an FHA loan or a cash deal). Consider utilities and monthly bills, such as homeowner's assessments.