How to buy a home: A Step-by-Step Guide to Homeownership

Live Where You Love — From Dream to Doorstep

Buying a house is more than a financial decision — it’s a personal milestone, a future investment, and a major emotional commitment.
This guide walks you through the home-buying process from credit to keys, with local tips for Fargo, Moorhead, West Fargo, and Horace so you can move confidently at every step.

Step 1: Check Your Credit (Fargo–Moorhead Buyers)

Discover your path to homeownership—step by step.

Check your credit score through a reputable reporting agency and dispute any errors you find. Your score drives your loan options and rate.
If your score is low, spend a few months paying down balances and correcting errors before applying. How much home can I afford if I make $70,000 a year?

Why it matters: Strong credit can save thousands over the life of your loan.

Hurdles:

• Unpaid debts or high utilization
• Not knowing your score
• Credit reporting errors

Real Estate Pro Tip: Monitor your credit monthly and dispute errors immediately.

“I had a score near 800 when my wife and I purchased, so my rate was nearly a full percentage point lower.” — Josh Steppling, real estate broker

Step 2: See If You Qualify for Financial Assistance (ND & MN)

Research first-time buyer grants, down payment assistance, and local programs. These can reduce upfront costs but often include income caps and residency rules.

Hurdles:

• Income caps or location-based restrictions
• Extra paperwork and documentation

Real Estate Pro Tip: Ask your lender about city/state housing authority partnerships.

“I got $20,000 for a down payment—it wasn’t a loan I had to repay.” — Martin Orefice, homeowner

Step 3: Determine Your Homebuying Budget in Fargo–Moorhead

Calculate down payment, closing costs, and a realistic monthly payment (principal, interest, taxes, insurance, HOA, maintenance).
Use local comps and tax rates to set a firm limit before touring.

Hurdles:

• Overlooking PMI
• Underestimating repairs or renovation costs
• Misjudging long-term affordability

Pro Tip: Budget at least 1% of the home’s value annually for maintenance.

Step 4: Gather Financial Documents for Your Loan

Collect W-2s, tax returns, pay stubs, bank statements, and debt records. Lenders prefer a two-year employment and income history.

Hurdles:

• Missing or outdated documentation
• High debt-to-income ratio
• Gaps in employment

Pro tip: Keep digital copies organized and ready to share.

Step 5: Get Preapproved (FHA/VA/USDA/Conventional)

Submit documents to a lender for a preapproval letter. It clarifies your price range and strengthens offers—especially in competitive neighborhoods.

Hurdles:

• Confusing preapproval with prequalification
• Letting preapproval expire

Pro Tip: Rate-shop multiple lenders within a two-week window to minimize credit impact.

Step 6: Start Home Hunting in Fargo, Moorhead, West Fargo & Horace

Work with your homebuyer agent and define must-haves vs nice-to-haves.
Prioritize location, layout, and lot size over cosmetic features.

Hurdles:

• Falling for the first house you see
• Overpaying in a competitive area
• Missing off-market or coming-soon listings

Step 7: Ask the Right Questions (HOA, Permits, Disclosures)

Before offering, ask about time on market, HOA fees and rules, renovation history, permits, and any disclosed defects.

Hurdles:

• Unpermitted additions
• Hidden issues (mold, foundation)
• Strict HOA restrictions

Step 8: Make an Offer & Negotiate Terms

Submit a competitive offer using fresh comps. Include appropriate contingencies and earnest money. Negotiate repairs or credits as needed.

Hurdles:

• Bidding wars or rejection
• Repair negotiations

“We asked for appliances and upgrades—and the builder agreed to everything.” — James Beckett, new home buyer

Step 9: Choose Your Mortgage & Lock Your Rate

Compare conventional, FHA, VA, and USDA programs. Lock your rate once you’re comfortable with terms and timing.

Hurdles:

• Not shopping rates across lenders
• Unexpected closing costs

“An independent broker saved us over $9,000 compared to our bank.” — Zayna Thomas, buyer

Step 10: Compare Inspectors, Title & Closing Services

Get multiple quotes for inspections, title, and attorney services to keep costs and timelines under control.

Hurdles:

• Overpaying due to lack of comparison
• Unclear or incomplete quotes

Step 11: Inspection & Survey (Use Reports to Negotiate)

Hire licensed pros to review structure, systems, and boundaries. Use results to request repairs or concessions.

Hurdles:

• Costly surprises
• Property-line disputes

Step 12: Appraisal (What to Do if It Comes In Low)

An appraiser confirms market value for the lender. If it’s low, renegotiate or adjust your down payment.

Outcomes:

• Under appraisal: Renegotiate price or increase down payment
• At value: Proceed as planned
• Over appraisal: Instant equity

Step 13: Final Walkthrough & Closing Day Checklist

Do a last inspection, confirm agreed repairs, review your closing disclosure, and sign documents to take ownership.

Hurdles:

• Last-minute lender conditions
• Incomplete repairs
• Unexpected closing costs

Consider buying mortgage points if you plan to stay long-term and want a lower rate.

Home Buyer Alert - New Homes For Sale

16 Listings

$110,000 205 7th Avenue SW
Valley City, ND 58072

IDX

$240,000 450 8th Street NW
Valley City, ND 58072

IDX

$255,000 94 23rd Avenue N
Fargo, ND 58102

IDX

$259,900 1806 5th Street N
Fargo, ND 58102

IDX

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IDX MLS IDX Listing Disclosure © 2025

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity SM Program of the Regional Multiple Listing Service of Minnesota, Inc. The information provided is deemed reliable but not guaranteed. Properties subject to prior sale, change or withdrawal. ©2024 Regional Multiple Listing Service of Minnesota, Inc All rights reserved.

🗝️ Key Takeaways for Fargo–Moorhead Buyers

• ✅ Get financially ready before you start shopping.
• ✅ Keep housing costs near or below 25% of take-home pay.
• ✅ Aim for 20% down to avoid PMI (5–10% for first-timers is common).
• ✅ Partner with a trusted REALTOR® for strategy at every step.

Written by Jim Christl, Broker at Modern Market REALTORS®Jim Christl is a licensed real estate broker and co-founder of Modern Market REALTORS®, guiding buyers and sellers with local expertise and attention to detail.