I Want to Buy a Home. Where Do I Start?

Looking at homes is usually the easy part. You can spend an evening browsing listings and get a pretty good idea of the neighborhoods, floor plans, and features you like. The listings can't tell you whether buying the home you want will leave you feeling comfortable with the payment and confident about the money you've put into it.

If you're wondering where to start when buying a home, I'd start with the monthly payment you'd feel comfortable with. That's where I like to begin, because once we understand that payment, the rest of the process becomes much easier to think through. You'll know what price range makes sense, how much money you'll need to put up front, and whether there's anything worth taking care of before you start making offers.

I'm Jeff Moran, a mortgage broker in Bluffton, South Carolina, with C2 Financial Corporation. I've been helping clients with mortgages since 1996, I'm licensed in fifteen states, and my NMLS number is 483943. The starting point is a little different for everyone. Buying your first home brings up different questions than selling a home you've owned for twenty years, and moving to another state adds a few things you may not have dealt with before. We'll work through what matters for your move so you can start looking with a clear idea of your options.

Starting with the payment you'd feel comfortable with

The first time we talk, I'll want to know what you're thinking about buying and what kind of payment would feel comfortable to you. You may have a firm payment in mind already, or you may want to see a few examples first.

We'll look at the full monthly cost, including the mortgage, property taxes, insurance, any mortgage insurance, and association dues. Then we can see how different prices and down payments affect it.

That conversation tells us more than starting with the highest amount you qualify for. You don't necessarily want to be house poor, and you don't always want to go for the highest-priced home. You may qualify for a larger payment and still prefer to keep money available for travel, retirement, your business, or whatever else matters to you. You still want to be able to enjoy life. I want to understand that before we start putting a loan together.

You can explore your options here if you'd like to get a feel for things first. I also walk through this in more detail in How Much House Can I Afford?

If this is your first home

Buying your first home comes with questions you may never have needed to ask before: how much to put down, what the lender will need, whether your credit is where it needs to be, and how much money to keep available after closing.

We can work through those together, starting with your income, monthly debts, credit, and the funds you have available. Those details help us figure out which loan options are worth considering and what the purchase could look like for you.

If you're self-employed or your income varies, I'll want to understand how you earn it before we settle on what you qualify for. The way that income is documented matters, so I'd rather have that conversation early.

The same goes for credit. If there's something worth addressing, we'll want time to look at it carefully rather than trying to sort it out while you're negotiating on a home. Here's more on preparing your credit.

As you get closer to making offers, we'll work through a documented pre-approval. Reviewing the documents behind your application shows us where your financing really stands and what still needs to be resolved. If you're buying in South Carolina, here's how pre-approval works there.

You can start this conversation well before you're ready to move. If buying is six months or a year away, we can use that time to prepare and give you a clearer idea of what you're working toward.

If you have a home to sell

If you already own a home, we need to understand how it fits into the next purchase. That usually means estimating what you could sell it for, what you owe, and what you might have available after the selling costs are paid.

From there, we can talk about how much of that money you want to put toward the next home and whether you'd prefer to buy before selling.

Buying first can make the move more convenient, especially if you'd like time to settle into the new place before leaving the old one. We'll need to review whether you can qualify with the existing home still in the picture, where the funds for the purchase would come from, and how comfortable you'd be carrying both homes while yours is on the market.

Selling first gives you access to the proceeds and a clearer picture of the money you'll have available to put toward your purchase. The timing can take more coordination, though, particularly if you need temporary housing or want to avoid moving twice.

Your debt-to-income ratio, which compares your monthly debt payments with your monthly income, is part of that review, along with your available funds and the requirements of the loan program. Once we've looked at the options, you and your agent can plan the sale and purchase around what actually works for you.

If you're considering keeping your current home as a rental, bring that up early too. We should review how that affects your financing before you commit to a plan.

If you're moving to another state

You've bought before, and a few of the details may be different where you're going.

The way a closing is handled, local practices around closing costs, property taxes, and insurance can all affect the purchase. We'll want estimates based on the new location rather than assuming the costs will look like your last transaction.

I'd get an insurance quote early, especially on a coastal property. A quote on the specific home gives us the actual cost to work with, and it tells us whether flood insurance or other coverage belongs in the budget.

If the move involves a new job, a transfer, or a change in how you're paid, I'll also want to understand that upfront. It may affect the income documentation we need and the timing of your financing.

And if you're selling in one state while buying in another, we'll need to coordinate when the sale proceeds become available and how they'll reach your next closing. Working through those details early helps everyone plan around the same timeline.

You can see the states I serve here.

How much money will you need to bring to closing?

Your down payment is one part of the total. We'll also estimate closing costs, prepaid expenses, and any required deposits into the escrow account used to pay taxes and insurance.

I'll want you to see all of those costs together so you understand what you'd need to bring to closing and what you'd have left afterward. This guide explains the closing costs.

We should also account for the move itself. You may want money available for furniture, repairs, or a few changes to the home before you settle in. Keeping a comfortable amount in the bank is part of the decision, and we can compare down payment options with that in mind.

Our first conversation, and what you'll come away with

You can tell me what you're thinking about doing, when you'd like to move, and what questions you have. From there, we'll talk through your budget, available funds, and anything about your situation that affects the loan.

I'll tell you what we can estimate now, what needs a closer look, and what I'll need from you for the next step. You'll come away knowing where you stand and how to move forward.

If you'd rather explore on your own first, you can start by looking at your options here. Once you have questions or want help comparing the choices, I'm happy to walk through them with you.

Common questions

What is the very first step in buying a home?

I'd start with the monthly payment you'd feel comfortable with. Once we have that, we can see what price range it supports with taxes, insurance, and any dues included, how much money you'd need to put up front, and whether there's anything worth taking care of before you make an offer.

Should I get pre-approved before I look at homes?

Yes, before you make an offer. Browsing while you get a feel for the market is good. Before you get serious, I'd want your financing reviewed so you know your options and have time to address anything that comes up.

Do I need to sell my current home before buying the next one?

Not necessarily. That depends on your qualifications, available funds, and the way you want to handle the move. We can review buying first and selling first so you understand what each would involve.

What changes when I buy a home in a different state?

A few things. The way the closing is handled, the local practices around closing costs, property taxes, and insurance can all be different from your last purchase. We'll want estimates based on where you're going, and an insurance quote on the specific home, rather than assuming it will look like last time.

How long before buying should I start preparing?

A year out is a good time to start planning. We can look at your budget, discuss the funds you'll need, and identify anything worth working on while you have time. Credit in particular is easier to take care of before you're negotiating on a home.

Can I do any of this without talking to a lender?

Yes. You can start on the site and get a feel for the payment and the money you'd need to bring to closing on your own. When you'd like help making sense of what you're seeing or reviewing your financing, I'm happy to walk through it with you.

Estimates and educational information are not a loan approval or commitment to lend.