Rachel Cruze’s 9-Step Guide To Buying a House in 2025

©Rachel Cruze

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Once a hallmark of the middle class, homeownership is increasingly becoming a symbol of wealth. Big cities in expensive states like California and Massachusetts are all but off limits to hopeful homebuyers. That said, 2025 is looking to be a year where home purchases soar and first-time buyers could finally get in after years of saving. 

If you’re ready to buy a home, then you need to know what’s next in your homebuying journey. Rachel Cruze, financial expert and frequent contributor to Dave Ramsey’s site, Ramsey Solutions, recently posted a blog that gives a deep dive into the steps you’ll need to take. 

Step 1: Ensure You’re Financially Ready 

You may feel ready to buy a home — and pretty sure you can financially pull it off — but make sure you absolutely can before embarking on this journey. Cruze provided the following checklist to go through:

• You’ve paid off all your debt.
• You’ve saved up a fully funded emergency fund.
• You can afford monthly mortgage payments and home maintenance.
• You have a good down payment.
• You can pay your closing costs and moving expenses with cash.
• You plan on staying put for a while.
• You have a real estate agent you trust.

Make sure you can confidently cross off all these items on your list before moving ahead. 

Step 2: Determine How Much How Is in Your Budget

If you have kids and pets, you may have your heart set on a four-bedroom with an ample backyard. If you work from home, you may want a room that can be solely a home office. Look, we all want a spacious abode, but can you afford it? Know the type of house you can afford as well as the location. There’s a pretty simple formula to follow here. 

“You should only buy a house when the monthly payment is no more than 25% of your monthly take-home pay,” Cruze wrote. “Anything more than that and you risk being house poor. Sticking to this number leaves plenty of room in your budget to cover home maintenance and repairs while hitting your other money goals, like saving for retirement.”

Step 3: Save For a Down Payment, Closing Costs and Moving Expenses 

To avoid paying a PMI fee, which you’ll incur if you don’t put down enough money on a house, aim to save at least 20% of the total home price for a down payment.

Cruze noted that upfront money needed doesn’t end with the down payment; you’ll also need enough saved to cover fees associated with closing escrow (around 3% of the home’s price) and moving fees.  

Step 4: Get Preapproved for a Mortgage Loan 

You’re probably raring to go and get right to house hunting, but that comes later. First, get preapproved for a mortgage loan. You’ll need to organize all your financial information for this, and be prepared for pretty intense scrutiny from prospective lenders. 

“A lender will need to take a look at your paycheck stubs, tax returns and bank statements to figure out how big of a mortgage you can afford,” Cruze wrote. “But it pays off when you start your home search because a preapproval letter shows you’re a serious buyer.”

This step is also important because it helps you find a mortgage loan that is right for you and your finances. You’ll determine whether it makes sense to go for a 15-year mortgage or a 30-year mortgage. 

Step 5: Work With a Reputable Realtor You Can Trust 

There are so many realtors to choose from. Ask friends and family for references and then read reviews online. You want to go with someone who you can trust not just financially but also personally. The process of buying a home does carry some stress, and it’s important to have someone levelheaded and experienced to serve as your guide and voice. 

“You can do a lot of research on your own, but you’ll need the help of an expert when it comes to finding and securing your perfect home,” Cruze wrote. 

Step 6: House Hunt With Realistic Needs in Mind 

Back to the aforementioned point about all of us wanting a spacious abode. Now that you know what you can afford, you need to narrow your search to focus only on the options that make sense for your budget. Don’t taunt yourself by looking at homes that are even slightly out of range. Your trusted real estate agent will come in handy here. 

“Once you have a clear picture of the features you both want, share them with your real estate agent and use them as the foundation of your home search,” Cruze said. “Your agent will help you set realistic expectations and target your search to areas and homes you can afford.”

Step 7: Make an Offer on a Home

Did you find a home that is within your budget and checks off your basic needs? Great! Time to make an offer — another process your realtor can help you handle. 

“Your real estate agent will work with you to submit a solid offer,” Cruze said. “If you end up in a bidding war with other buyers, keep a cool head and put your best foot forward. Being preapproved with your lender and having a flexible closing date can make your offer stand out.”

Step 8: Pay For a Home Inspection 

If your offer is accepted, you may be stoked, but stay grounded. You still need to ensure that the home is as good as you think it is. This means paying for a professional inspector to come in and check everything out in person. 

“If the inspection reveals major problems with the home, you can ask the seller to fix the problem, reduce the price or cancel the contract,” Cruze wrote. 

Step 9: Wait Out Final Loan Approval — And Close Escrow! 

You may be antsy to get this whole thing wrapped up, but bear in mind that even if you’re preapproved for a mortgage loan, securing the loan takes time. 

“Prepare to be patient for this part,” Cruze said. “Your lender will be digging through a ton of your financial details to finalize your mortgage, which could take more than a month to hammer out before your closing date.”

Once you’re finally done with all the financial fine print and are happy with the home you’re buying post-inspection, congrats! You can safely proceed to close escrow. This means signing a ton of paperwork. Ask your realtor to help explain it all to you so that you’re not agreeing to anything you don’t understand. 

“You should receive a copy of your closing documents to review ahead of time so there are no surprises on closing day,” Cruze said. 

Once that’s all done, you can breathe a sigh of relief and pick up the keys to your new home, at last. 

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