How to buy a house in Indianapolis, step by step

How do you buy a house in Indianapolis? The steps are the same for a condo, a single-family home or a duplex you'll live in. You get clear on what you want, talk to a lender, sign a buyer agreement, tour, make an offer, inspect, let the lender finish, and close. Each step has a job, and each one asks something of you.

1. Get clear on what you want

Start with the kind of home and the kind of week you want. A place that's all yours? A room to rent? A 2-4 unit building you live in? Then sort your needs from your wants. The wants and needs checklist walks you through location, home type, bedrooms, bathrooms and the features that actually matter to you.

2. Talk to a lender

A lender reviews your income, debts, credit and savings and tells you which loans you may qualify for. Expect to gather pay stubs, tax returns and bank statements. After you apply, the lender gives you a Loan Estimate that lists your expected costs. Keep it, because you'll compare it with your final numbers at the end.

A pre-approval is an estimate, not a final loan approval. Pick a monthly payment you can live with, not just the most you can borrow. Closing costs come on top of your down payment.

3. Sign a buyer agreement

Since August 17, 2024, a REALTOR who works with you as a buyer has to have a written agreement with you before you tour a home together, in person or virtually. The agreement spells out what the agent will do and what they'll be paid. The pay has to be a clear amount, not open-ended, and NAR's consumer guide to written buyer agreements says it's negotiable and not set by law. You can also ask the seller to cover it as part of your offer.

You don't need an agreement to walk into an open house on your own. Read any agreement before you sign it, and ask how long it lasts and how it ends.

4. Tour and build a shortlist

Tour homes that fit your list and your budget. Take notes right after each one, while you still remember which house had the wet basement smell. For a house hack, look hard at the layout: separate entrances, separate utilities, parking and how much privacy each unit gets. Ask what similar units nearby actually rent for, and whether the building comes with tenants and leases already in place.

5. Make an offer

Your offer becomes a purchase agreement once the seller accepts it. It covers the price, your earnest money, your contingencies and the deadlines. Earnest money is a deposit that shows you're serious. The agreement says how much it is, who holds it, and when you could lose it. Contingencies are conditions, like an inspection or your financing, that let you renegotiate or back out if something goes wrong.

Indiana law generally requires sellers of 1-4 unit homes to fill out a disclosure form about the home's known condition and give it to you before your offer is accepted. It covers what the seller knows, as of the date they sign. It isn't a warranty, and it doesn't replace an inspection.

6. Inspect

Once your offer is accepted, a home inspection shows you the building's condition. Your purchase agreement sets how many days you have, so schedule it fast. On a multi-unit building, that means every unit plus shared systems like the roof, plumbing and electrical. Depending on your contract, what the inspector finds can lead to a repair request, a price change or walking away.

7. Appraisal and underwriting

If you're using a loan, the lender orders an appraisal to check the home's value and finishes reviewing your file. Answer their requests quickly. Ask your lender before you open new credit, make a big purchase or change jobs, because any of those can change your file before closing.

8. Closing

Your lender has to give you the Closing Disclosure at least three business days before you close, according to the Consumer Financial Protection Bureau. Compare it with your Loan Estimate and ask about anything that changed. Do a final walkthrough of the home, sign the paperwork, and get the keys.

9. After you move in

If the home is your principal residence, file for the homestead deduction. The Marion County homestead guide covers the deadline and how it works when you rent part of the home. If you bought a house hack, you now also run a small rental, so read the rules before you rent a room in Indianapolis before you advertise.

Where to go from here

The how it works page lays out these stages with what each one asks of you. If you're still deciding between a place of your own and a house hack, the house-hacking quiz is a low-pressure place to start. Questions about a specific step? Talk with me. I'm Kyle Hoffman, a REALTOR with Roots Realty Co., licensed in Indiana.

Sources

• NAR consumer guide to written buyer agreements: when an agreement is needed and how compensation works.
• CFPB: What is a Closing Disclosure?: the three-business-day rule.
• Indiana Seller's Residential Real Estate Sales Disclosure, State Form 46234 (IC 32-21-5): who fills it out and when.

Last reviewed September 2026.

This is general information, not lending, tax or legal advice. A lender decides any loan.