A boring tool is movable through the ground. A transmitter supported by the boring tool transmits an electromagnetic homing signal. A portable device monitors the electromagnetic homing signal and receives the electromagnetic homing signal in a homing mode for guiding the boring tool to a target position. A processor generates steering commands for guiding the boring tool based on a bore plan in a steering mode such that at least some positional error is introduced without using the electromagnetic homing signal. Switching from the steering mode to the homing mode is based on monitoring of the electromagnetic homing signal as the boring tool approaches the portable device to then guide the boring tool to the target position location in compensation for the positional error. Intermediate target positions are described as well as guiding the boring tool based on the homing signal so long as the portable device receives the signal.