Buying a home in the United States

1. Determine your budget

Before browsing properties, get a clear picture of what you can afford. The standard rule of thumb is that your monthly housing cost (principal, interest, taxes, insurance, and HOA fees) should not exceed roughly 28–33% of your gross monthly income.

Down payment

Most conventional loans require a down payment of 5–20% of the purchase price. FHA loans (first-time and lower-income buyers) can go as low as 3.5%. Putting down less than 20% typically requires private mortgage insurance (PMI), which adds to your monthly cost.

See our mortgage basics guide for the difference between fixed and adjustable-rate loans, and what closing costs to expect from the lender side.

2. Get pre-approved

Pre-approval is a letter from a lender stating how much they'd be willing to lend you, based on your income, credit, and assets. In most US markets — especially Miami — sellers will not seriously consider an offer without a pre-approval letter attached.

Pre-approval typically requires:

• 2 years of tax returns and W-2s (or business returns if self-employed)
• Recent pay stubs and bank statements
• Credit check (the lender pulls it)
• Information about the down payment source

3. Make an offer

Once you find a property, you and your buyer's agent submit a written offer to the seller's agent. The offer includes price, deposit (earnest money), proposed closing date, financing terms, and contingencies (inspection, financing, appraisal).

The seller can accept, reject, or counter. In hot markets like Miami, multiple-offer situations are common — your agent will advise on competitive offer strategies.

4. Inspection and due diligence

Once your offer is accepted, you typically have an inspection period (commonly 10–15 days in Florida) during which you can hire a licensed inspector to evaluate the property's condition. Findings can lead to repair requests, price renegotiation, or walking away from the deal entirely (recovering your deposit).

In Florida specifically

Florida buyers should also evaluate flood zone, hurricane-impact windows and roof condition, HOA financial health (for condos), and any open code-compliance issues. Your partner agent should be able to pull this information before you make an offer.

5. Closing

Closing typically takes 30–45 days after an accepted offer (faster for cash deals). At closing, you sign the loan documents (if financing), wire the down payment and closing costs, and receive the keys.

Typical closing costs (Florida)

• Title insurance: 0.5–1% of the purchase price
• Doc stamps on the mortgage: roughly 0.35% of the loan amount
• Lender fees: 0.5–1.5% of the loan amount
• Property taxes prorated to the closing date
• HOA application and capital contribution fees (for condos and gated communities)

Total closing costs for a Florida buyer typically run 2–5% of the purchase price. Cash buyers avoid most of the lender-side fees but still pay title insurance and doc stamps.

6. After closing

Set up homeowner's insurance (required by all lenders), file for Florida's homestead exemption if the home will be your primary residence (significant property tax savings), and update your address with the IRS and state DMV.

Related guides

• Mortgage basics: fixed vs. ARM, PMI, down payment
• Buying as an international (non-resident) buyer
• Renting in the United States