Unless you plan on paying with cash, your first step will be to get pre-approved for a loan. Once you get pre-approved, you will know with more accuracy the price of the home you can afford.

In pre-qualification, you are given an estimate of what you may be able to borrow. This is a quick way to know what price range you should be looking in. Pre-approval means a financial institution has agreed to work with you and has taken a thorough look through your credit and finances, and give you a conditional approval.

While you can never know how much a home is worth exactly, your real estate agent has been trained to use comparable properties to determine accurate pricing of homes. He or she will look at houses that have recently sold in the area that are similar to the one you are buying to ensure you are paying a fair price.

You can always back out of a deal, but it depends on how the contract is written. Worst case scenario you may have to forfeit the earnest money you put down with the offer. Earnest money is typically around 1%-2% of the home’s price.

It can typically take 30 to 45 days to close.