How to Get Started with the Homebuying Process

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A note from the author:

Here's a sneak peek of an article I wrote for Holy Cross' new career development and young alumni blog, coming soon!

Buying your first home is an exciting milestone, but in today’s real estate market, it can also feel overwhelming. Limited inventory, rising home prices, and higher interest rates have made homeownership more challenging for first-time buyers. However, with the right preparation and strategy, you can successfully navigate the market and achieve your homeownership goals.

Here’s what you need to know to get started.

Financial Preparation: Setting Yourself Up for Success

Before you begin house hunting, it’s important to have a clear understanding of your financial situation. Here are a few key steps to take:

  • Assess Your Budget and Credit: Review your income, expenses, savings, and credit score to determine a realistic homebuying budget. A general rule of thumb is that your monthly mortgage payment should not exceed 28-30% of your gross monthly income. Your credit score significantly impacts your mortgage terms, with a score of 700+ helping secure better interest rates.

  • Discuss Your Goals with a Professional: Many first-time homebuyers find it helpful to consult a financial advisor or mortgage lender early in the process. These conversations can clarify affordability, loan options, and timing—helping you make informed decisions before diving into the home search.

  • Save for a Down Payment and Closing Costs: While 20% down is often recommended, you have plenty of other options. Many lenders offer low down payment options (3-5%) and different loan types that could be a better fit. Be sure to budget for closing costs, typically 2-5% of the home’s purchase price.

  • Get Pre-Approved for a Mortgage: In a competitive market, pre-approval is essential. It shows sellers that you are a serious buyer and helps both you and your agent define a clear price range before starting your home search.

  • Avoid Financial Activities that Impact Credit: Your mortgage interest rate is tied to your credit score and debt-to-income ratio. Avoid opening new credit accounts, making large purchases, or changing jobs before closing, as these can impact loan approval.

Research and Utilize Available Resources

Buying a home is one of the largest financial investments most people make. Whether you’re purchasing your first home or entering a new market, being an informed buyer will improve your experience and results.

Key Resources for First-Time Buyers:

  • Lean into Learning: Take advantage of buyer education resources to understand the homebuying process, timelines, and transaction forms. This preparation will boost confidence and help you navigate the experience smoothly.

  • Stay Informed on Market Trends: Real estate market conditions—such as interest rates, inventory levels, and buyer demand—directly affect home prices. Staying informed both locally and nationally can help you make smart timing decisions.

  • Network with Alumni and Industry Professionals: The Holy Cross Alumni Network is a valuable resource for connecting with professionals in real estate. Whether you’re looking for guidance or industry experts to consult with during your home search, or considering real estate as a career, we have a fantastic network of people who would love to help. The HC Real Estate Club can also help students learn about a wide range of topics and trends. Their annual networking event and alumni guest speakers provide another option for gaining knowledge and industry perspective.

  • Partner with a Knowledgeable Realtor®: A great Realtor® serves as your advocate—providing expert insights, a strategic homebuying approach, and negotiation skills to help you make informed decisions.

  • Explore First-Time Homebuyer Programs: Many federal, state, and local programs offer grants, down payment assistance, and tax credits. You may qualify for FHA loans, VA loans (for veterans), or state-specific assistance programs. Your mortgage lender can help you explore these options.

Building a Trusted Team of Professionals

Having the right experts on your side makes the homebuying process smoother and helps you avoid costly mistakes. Here’s who you’ll need:

  • Realtor®: Guides you through the home search, offers negotiation expertise, and ensures the process runs smoothly.

  • Mortgage Lender: Helps you secure financing, explore loan options, and ensures a seamless closing process without delays.

  • Home Inspector: Evaluates the condition of the home and provides a detailed report on potential repairs or concerns before you finalize the purchase.

  • Real Estate Attorney: In Massachusetts (and some other states), an attorney is required for closing. They review contracts, conduct title searches, and ensure the legal aspects of the transaction are in order.

  • Insurance Broker: Lenders require homeowners insurance before closing. A broker helps you find the right coverage, compare policies, and ensure compliance with lender requirements.

Not sure where to start? Your Realtor® can provide trusted recommendations for professionals in each field.

Final Thoughts

Navigating the housing market in 2025 presents challenges, but with the right preparation, you can achieve homeownership with confidence. By understanding your finances, leveraging available resources, and working with trusted professionals, you set yourself up for success.

Thinking about buying a home? Start preparing today! Taking proactive steps now can help you secure a home you love—while making smart financial decisions for the future. 

Written by Danielle Dimond, Class of 2013 Alumni
Realtor® || Senné, 84 Atlantic Ave, Boston, MA 02110
Accredited Buyer’s Representative® (ABR®), Seller Representative Specialist® (SRS®), AHWD®, C2EX
Greater Boston Association of REALTORS® Young Professionals Network, Chair (2023-2024)