Everything you need to know about buying a home, in 7 steps

Buying a house is no walk in the park.

It takes a lot of organization, careful thought, and, of course, money.

But if you're serious about becoming a homeowner, you need to get prepared for the road ahead.

To help out, Business Insider consulted Dana Bull, a realtor with Sotheby's International in Boston, and George Chedid, a realtor with Century 21 Barrood in Kendall Park, New Jersey, to put together a timeline of the homebuying process.

Below, check out the seven steps you'll take to buy a house, from teaming up with a realtor and finding out what you can afford to closing on the deal, and everything in between.

SEE ALSO: 7 pieces of homebuying advice you can't afford to ignore

DON'T MISS: Here's how big a home you can buy for $400,000 in the 25 biggest cities in America

Step 1: Build your team and determine your price point

A home is a huge purchase, so you'll want to make sure you're making as few mistakes as possible along the way. That means putting together a team of people you trust, including a real estate agent, lender, and lawyer, which is often the bank's attorney, says Bull.

Estimate what you can afford

You can do this yourself using a mortgage calculator on sites like Zillow or Trulia (just be sure to include property taxes and insurance in that estimate), or you can ask a lender to pre-qualify you for a loan.

The general rule of thumb is to spend less than 30% of your take-home pay on total monthly housing payments.

But figuring out how much you can realistically afford will come down to your debt-to-income ratio. Chedid recommends your monthly debts including your housing costs not equal more than 40% to 45% of your gross monthly income.

Step 2: Get pre-approved for a loan

In most cases if you plan to get a mortgage, you need a loan pre-approval in hand before you can start looking at houses — most realtors won't entertain shoppers who don't have one.

Bull calls it getting your "financing ducks in a row." While you may already have an idea of what you can afford, you'll need to find out how the bank sees you. A mortgage broker will assess your income, assets, and credit to determine your maximum loan amount.

Because a loan pre-approval holds more heft than a loan pre-qualification, it'll take more work to get one. It requires a number of documents from each applicant (so if you're married, both you and your spouse will need to provide these items):

• ID

• Pay stubs for one-month period

• Bank statements, both checking and savings, for two-month period

• Income tax returns for two-year period

• W2s for two-year period

During pre-approval, the lender will also do a hard inquiry of your credit, which will show up on your credit report.

Once you're pre-approved, you'll receive a conditional letter stating the amount you've been approved for.

If you're a first-time buyer and your parents are gifting you money, your lender will want a letter from them confirming that amount.

Crunch the numbers

Now you can find out how much house you can realistically afford given your loan amount. Don't forget to factor in taxes, insurance, closing costs, private mortgage insurance (PMI), and homeowner's association fees (if you expect to have them).

Pick your lender

It's worth noting that you don't have to go with the lender that offered you pre-approval. You can use your pre-approval to shop around for lenders who will offer you better rates.

"The rate is important, but so is the service and making sure you get to the closing table," says Bull.

Step 3: Shop for homes

Though your real estate agent should be your top resource, "do your homework," Bull says. Find out which neighborhoods you want to be in and check out a few open houses. The more you see, the more informed your decision will be when you finally pick the one.   

You'll need to stay on your toes while you're shopping. New homes come on the market every day, so it's imperative to stay on top of listings, whether that means signing up for online alerts or checking in with your realtor daily.

Bull also suggests making it a priority to see homes the day they hit the market, or the first available showing, and always being ready to sign an offer. You may even want to keep your lender "waiting in the wings," she says, so that you can get an updated pre-approval letter quickly.