Some Steps to Start Buying a Home in 2024

If buying a home is on your list for 2024, the best time to start preparing is right now. The buyers who succeed in competitive markets are the ones who did their homework months in advance. Here's a practical roadmap to get you started.

Step 1: Check and Improve Your Credit Score

Your credit score is one of the most important factors in your mortgage approval and interest rate. Start by:

• Pulling your free credit reports at AnnualCreditReport.com (all three bureaus)
• Disputing any errors — inaccuracies can drag down your score unfairly
• Paying down revolving debt — credit card balances below 30% of your limit can boost your score
• Avoiding new credit applications — hard inquiries can temporarily lower your score

General mortgage credit score benchmarks:

• 760+: Best rates available
• 700–759: Good rates
• 640–699: Acceptable for most programs, but higher rates
• Below 640: May need to work on credit before applying

Step 2: Save for Your Down Payment and Closing Costs

Many buyers focus only on the down payment and forget about closing costs, which typically run 2–5% of the loan amount.

Down payment options:

• Conventional loans: As low as 3–5% (with PMI below 20%)
• FHA loans: 3.5% minimum
• VA loans: 0% down for eligible veterans
• USDA loans: 0% down for eligible rural properties
• Michigan MSHDA programs: Down payment assistance available for qualifying buyers

Closing cost estimate: On a $250,000 purchase, expect $5,000–$12,500 in closing costs. Some can be rolled into the loan or covered by seller concessions.

Step 3: Get Pre-Approved (Not Just Prequalified)

As we've covered in other posts, preapproval is far more powerful than prequalification. Before you start seriously looking at homes, get a full preapproval from a trusted lender. This tells you:

• Exactly how much you can borrow
• What your estimated monthly payment will be
• What loan programs you qualify for

Step 4: Define Your Priorities

Before you start touring homes, get clear on what matters most to you:

• Must-haves: Number of bedrooms, bathrooms, garage, school district
• Nice-to-haves: Finished basement, large yard, updated kitchen
• Deal-breakers: Busy road, HOA restrictions, flood zone

Having this list ready helps your Realtor find the right homes and helps you make faster decisions when the right one comes along.

Step 5: Find the Right Realtor

Your Realtor is your guide, advocate, and negotiator throughout the process. Look for someone who:

• Knows your target market well
• Has experience with the type of home you're buying
• Communicates clearly and promptly
• Has a track record of successful transactions

Ask for referrals from friends and family, and don't be afraid to interview multiple agents before choosing.

Step 6: Understand the Market in Your Target Area

Every market is different. Research:

• Average days on market — How quickly are homes selling?
• List-to-sale price ratio — Are homes selling above or below asking price?
• Inventory levels — Is it a buyer's or seller's market?
• Seasonal trends — Spring typically brings more inventory and more competition

Your Realtor can provide this data for your specific target area.

Step 7: Get Educated on the Process

The home buying process has many steps — offer, inspection, appraisal, title search, final walkthrough, closing. Understanding what happens at each stage reduces stress and helps you make better decisions.

Resources like this blog, your lender, and your Realtor are all here to help you navigate the process with confidence.

The Bottom Line

Buying a home in 2024 is absolutely achievable — even in a market with elevated rates and limited inventory. The buyers who succeed are the ones who prepare early, build the right team, and move decisively when the right opportunity appears.

Start with your credit and savings today, and you'll be in a much stronger position when you're ready to make your move.