1. Figure Out Your Comfortable Budget
Start with the monthly payment you're comfortable with, not just the most a lender will approve. Remember to count property taxes, homeowners insurance, and any HOA dues. Look at your savings too: you'll need money for a down payment, closing costs, and a cushion for after you move in.
2. Get Pre-Approved
Talk to a local lender before you start touring homes. Pre-approval tells you exactly what you can spend and shows sellers you're ready. Don't open new credit cards or make big purchases while you're buying, since that can change your approval.
3. Ask About First-Time Buyer Programs
South Dakota Housing offers loan programs and down payment help for first-time buyers who qualify. FHA, VA, and USDA loans can also mean a smaller down payment, and many small towns around Sioux Falls may qualify for USDA loans. Your lender can tell you which ones fit you.
4. Choose Your Agent
Since 2024, you'll sign a written agreement with your buyer's agent before touring homes. It spells out what your agent will do and how they're paid, and the terms are negotiable. A good agent explains every step, so ask all the questions you want. Here's what to look for in an agent.
5. Tour Homes
Make a short list of must-haves and nice-to-haves. Think about the commute, the school district, and the neighborhood, not just the house itself. Good homes can go fast, so it helps to be ready to act when the right one comes along.
6. Make an Offer
Your offer includes the price, your earnest money, your closing date, and contingencies, which are the conditions that protect you, like a satisfactory inspection, an appraisal, and final loan approval. I'll help you write an offer that's strong and still protects you.
7. Get an Inspection
An inspector checks everything from the roof to the furnace. If something big comes up, you can ask the seller to fix it, offer a credit, or adjust the price. Depending on the home, you may also want radon, well, septic, or sewer line testing.
8. Appraisal and Final Loan Approval
Your lender orders an appraisal to confirm the home's value, then finishes underwriting. Answer your lender's requests quickly to keep things on track.
9. Final Walk-Through
Right before closing, you'll walk through the home to make sure it's in the condition you agreed to and any promised repairs are done.
10. Closing Day
You'll sign your loan and closing documents at the title company, the funds are sent, and you get your keys. Bring a photo ID, and send your closing funds the way your title company tells you. Always confirm wiring instructions by phone, using a number you already know, before you send any money.
For a full breakdown of costs, read what it costs to buy a home in South Dakota. Ready to get started? Book a call and we'll make a plan together.
This is general information, not legal, tax, or lending advice. Your lender can confirm what you qualify for.
Common Questions
Do I need 20% down to buy a home?
No. Many buyers put down much less. Some conventional loans allow as little as 3% down, FHA loans 3.5%, and VA and USDA loans can allow 0% down for buyers who qualify. Your lender will help you find the right fit.
What's the difference between pre-qualified and pre-approved?
Pre-qualification is a quick estimate. Pre-approval means a lender has checked your income, assets, and credit, so sellers take your offer more seriously. Get pre-approved before you start touring.
Are there programs for first-time buyers in South Dakota?
Yes. South Dakota Housing offers loan programs and down payment help for first-time buyers who qualify. Ask your lender whether you're eligible.
How long does it take to buy a home?
Finding the right home can take days or months. Once your offer is accepted, closing often takes about 30 to 45 days, depending on your loan.
Written by Lacie Packard, REALTOR®, White Spruce Real Estate, Keller Williams Realty Sioux Falls. Updated October 2026.