How to buy a home in Connecticut

Connecticut is known for its classic New England charm, rocky shorelines along Long Island Sound, and wooded small towns. Buying a house in Connecticut might be a good option if you want to prioritize proximity to major cities, new job opportunities, and access to the outdoors.

Whether you already live in Connecticut or you’re relocating for work or a new chapter, buying a home in the state comes with its own set of considerations. Here’s what to know so you can feel confident, informed, and ready at every step.

Connecticut’s housing market: At a glance

Understanding the housing market in Connecticut

Before you start house hunting, it’s a good idea to understand Connecticut’s housing market and how home prices can vary throughout the state.

The median home price is $449,100

In Connecticut, home prices have increased 8% compared to October 2024, according to Redfin. The median home sale price is slightly higher than the national average, $449,100 compared to $439,917.

You’ll find some areas that are both more and less affordable than Connecticut’s state average. Some cities have additional housing inventory and might be more affordable than areas with fewer homes for sale.

• In Bridgeport, the median home price is $400,000.
• In Stamford, the median home price is $689,000.

Neighborhood, home size, unique features, and nearby amenities also influence home prices in different areas. You can use the Rocket Mortgage home affordability calculator to help compare prices to see which cities may fit your budget best. 

Market trends and inventory 

Connecticut has seen a 1.4% increase in homes for sale compared to last year. Each city in Connecticut differs slightly, so working with an experienced local real estate agent can help you navigate the market. 

Spring and summer are peak shopping seasons

More homes tend to hit the market, and buyer demand is higher in Connecticut’s spring and summer months. Shopping for a home in the early fall through winter may mean fewer competing buyers and the potential for better prices, though inventory could be more limited. At the end of the day, the best time to buy a home is when you’re financially and emotionally ready. 

How to buy a house in Connecticut

Now that you know about the home prices in Connecticut, we’ll guide you through the steps of buying a house in the state.

Step 1: Check your credit and set a budget

Before starting your home search, examine your finances, such as your credit score, DTI, and potential budget. You can use the Rocket Mortgage mortgage calculator to see what you could afford each month and how much you should save for your down payment and closing costs.

• Check your credit score
• Find out your debt-to-income ratio
• Save for a down payment
• Plan for closing costs and additional fees
• Finalize your budget

Step 2: Decide on the type of financing you want

If you’re buying a home in Connecticut, there are various home loans available.

• Conforming conventional loans. These loans are offered by private lenders, who typically require a minimum 3% down payment. If your down payment is lower than 20%, you’ll have to pay private mortgage insurance (PMI).
• Jumbo loans. These conventional loans exceed conforming loan limits. They typically require a higher down payment, credit score, and additional cash reserves. 
• FHA loans. This is a government-backed loan through the Federal Housing Administration and offers lower down payments depending on your credit score. 
• VA loans. Backed by the Department of Veterans Affairs, these loans are for qualifying service members and surviving spouses and require no down payment.
• USDA loans. Backed by the U.S. Department of Agriculture, these loans are for home buyers in qualifying rural areas, with no down payment requirement. The USDA releases an updated map each year showing which areas are eligible. 

Step 3: Apply for preapproval

A mortgage preapproval gives you a clear idea of how much you can borrow when buying a home in Connecticut. Having a preapproval early in your search can help you stand out, especially in competitive areas.

During the preapproval process, lenders review your credit score, income, and assets to determine which loans you may qualify for, your potential interest rate in Connecticut, and the loan terms. The process typically takes just a few days.

Step 4: Find a real estate agent in Connecticut

Choosing a local real estate agent in Connecticut makes the homebuying process smoother, as they have a deep understanding of the area. You can find a great real estate agent through sites like Redfin.com or through your family and friends. 

In Connecticut, dual agency is allowed if both parties have written consent. Dual agency allows one agent to represent both buyers and sellers in the transaction. Be sure to ask your agent before signing a buyer's agent agreement. 

Step 5: Start house hunting

After narrowing down a few cities that match your home buying goals, it’s time to look at homes for sale. Work with your real estate agent to look at homes for sale on the MLS and sites like Redfin to narrow down the homes you want to see in person. 

Key factors to consider:

• Proximity of the neighborhood to schools, jobs, and amenities
• Public transit, major roads, and highways
• HOA fees and potential costs
• Costs of property taxes in the city

Step 6: Make an offer and negotiate

Your real estate agent will guide you through making an offer on a house in Connecticut. You’ll work together to decide how much to offer, which contingencies to include, and how much to put down as an earnest money deposit. This deposit shows the seller you’re committed to purchasing the home and is typically 1% – 3% of the purchase price, later applied toward your down payment.

Step 7: Begin the closing process

Now that your offer is accepted, you’ll:

• Submit your earnest money
• Officially apply for a mortgage
• Read through the closing documents
• Schedule the appraisal and inspection
• Prepare for closing day
• Have a final walkthrough

In Connecticut, closing costs are typically 3% – 6% of the home’s purchase price. Closing costs can cover loan origination fees, home inspection costs, mortgage points, insurance, property taxes, and escrow fees.  

It’s required that a real estate attorney conduct the closing process and be present on closing day in Connecticut. A real estate attorney typically works for the loan officer and prepares the closing documents. You can also hire a real estate attorney to represent you and help you review the closing documents.

FAQ about home buying in Connecticut

Here are some of the top frequently asked questions about buying a home in Connecticut.

How much are property taxes in Connecticut?

The effective property tax for Connecticut is 1.92%, the third-highest in the nation, but local property taxes might differ.

Do I need a real estate agent to buy a home in Connecticut?

A great real estate agent can help you find your dream home and navigate the home buying process, but you technically don’t need one to buy a home in Connecticut.  

How long does it take to close on a house in Connecticut?

In Connecticut, it typically takes 30 to 60 days to close on a home. Loan approval and home could affect this timeline. 

Are there any specific factors that could affect the home buying process?

In Connecticut, a real estate attorney is required to be present at closing. Additionally, your lender could require you to carry flood insurance if the home is located in a flood zone.

The bottom line: There’s a home in Connecticut waiting for you

Connecticut is a gateway to the Northeast with access to job opportunities, charming cities, and outdoor amenities, making it a great place to call home. While property taxes and home prices may be higher, relocating to Connecticut has its benefits. Working with a trusted real estate agent and preparing your finances can help you feel confident buying a home in Connecticut. 

If you’re ready to buy a home in the Constitution State, start the mortgage approval process with Rocket Mortgage® for a personalized plan that fits your financial goals.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

Rocket Mortgage is not acting on behalf of FHA or HUD.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

This article is for informational purposes only and is not intended to provide financial, investment, or tax advice. You should consult a qualified financial or tax professional before making decisions regarding your retirement funds or mortgage.