How long does it take to buy a house?

The home buying process takes 2-6 months on average once you start shopping. Getting mortgage preapproval takes 1-3 days, house hunting 1-3 months, and closing 30-45 days. Saving for a down payment can take 1-5+ years before you're ready.

What credit score do I need to buy a house?

Minimum credit scores: 500 for FHA (10% down), 580 for FHA (3.5% down), 620 for conventional, 620 for VA. For the best rates, aim for 740+. Every 20 points above minimums can improve your interest rate.

How much money do I need to buy a house?

Plan for 3-20% down payment plus 2-5% for closing costs plus 1-2% for prepaids plus 3-6 months of expenses as reserves. On a $400,000 home, that's $30,000-$120,000+ depending on down payment size.

How to Buy a House: Step-by-Step Checklist (2026)

Home Buying Timeline

Overview

Phase	Timeline
Preparation (savings, credit)	6 months - 3 years
Getting preapproved	1-3 days
House hunting	1-3 months
Making offers	1-4 weeks
Under contract	30-45 days
Total from ready to buy	2-6 months

Step 1: Assess Your Finances

Check Your Credit

Action	Why It Matters
Get free credit reports	Review for errors
Check credit scores	Know what you qualify for
Dispute errors	Could improve score
Pay down debt	Improves score and DTI

Credit Score Requirements

Loan Type	Minimum Score	Best Rates
FHA	580 (3.5% down)	720+
Conventional	620	740+
VA	620 (typically)	720+
USDA	640 (typically)	680+

Calculate Your Debt-to-Income (DTI)

Formula	Target
Monthly debt ÷ Monthly gross income	Under 43%
Housing payment ÷ Monthly gross income	Under 28%

Example: $6,000 income, $500 car payment, $300 student loans

Current DTI: $800 ÷ $6,000 = 13%
Max housing payment: $6,000 × 28% = $1,680

Step 2: Save for Down Payment & Costs

What You’ll Need

Cost	Typical Amount
Down payment	3-20% of home price
Closing costs	2-5% of loan amount
Prepaids (insurance, taxes)	1-2% of home price
Moving costs	$1,000-$5,000
Immediate repairs/supplies	$2,000-$10,000
Emergency fund	3-6 months of expenses

Total Cash Needed Examples

Home Price	5% Down	20% Down
$300,000	$35,000	$90,000
$400,000	$46,000	$120,000
$500,000	$57,000	$150,000

Saving Strategies

Strategy	Impact
High-yield savings account	4-5% APY
Automatic transfers	Consistent saving
Cut major expenses	$300-$1,000+/month
Side income	Extra $500-$2,000/month
Down payment assistance	Up to 3-5% of price

Step 3: Get Preapproved

Preapproval vs Prequalification

Feature	Prequalification	Preapproval
Credit check	Soft (maybe)	Hard
Document review	Limited	Full
Income verification	Self-reported	Documented
Seller confidence	Low	High
Rate lock available	No	Sometimes
Time to complete	Minutes	1-3 days

Documents Needed

Document	What to Provide
ID	Driver’s license, passport
Income	W-2s (2 years), pay stubs (30 days)
Self-employed	Tax returns (2 years), P&L
Assets	Bank statements (2-3 months)
Debts	List of monthly payments
Rental history	Address, landlord contact

Preapproval Shopping Tips

Tip	Why
Get multiple preapprovals	Compare rates and terms
Shop within 14-45 days	Counts as one credit inquiry
Ask about rate locks	Protect against rate increases
Understand conditions	What could change approval

Step 4: Find a Real Estate Agent

Agent Benefits

Service	Value
Market knowledge	Pricing, neighborhoods
MLS access	Full listings
Negotiation	Offer strategy
Paperwork	Contract expertise
Network	Inspectors, lenders, etc.

How to Choose an Agent

Factor	What to Look For
Experience	3+ years, 10+ transactions/year
Local expertise	Knows your target area
Communication	Responsive, preferred method
References	Recent buyer reviews
Availability	Can show homes on your schedule

Agent Costs

Question	Answer
Do buyers pay agents?	Typically no (seller pays)
Commission rate	2.5-3% of sale price
Who pays	Usually from seller proceeds
Negotiable	Yes, especially on expensive homes

Step 5: Determine Your Needs

Must-Have vs Nice-to-Have

Category	Examples
Must-Haves	Bedrooms, location, garage, budget
Nice-to-Haves	Updated kitchen, pool, specific style
Deal-Breakers	HOA restrictions, flood zone, commute

Location Factors

Factor	Questions to Ask
Commute	How long? Public transit?
Schools	Ratings? Even if no kids (resale)
Safety	Crime statistics?
Walkability	Shops, restaurants nearby?
Future development	What’s being built?

Property Research

Item	Why It Matters
Property taxes	Major ongoing cost
HOA fees	Monthly expense
Flood zone	Insurance costs
Zoning	Future use restrictions
Lot size	Privacy, expansion potential

Step 6: Search for Homes

Where to Search

Resource	Pros
MLS (via agent)	Most complete, accurate
Zillow/Redfin	Good starting point
Realtor.com	Official NAR site
Direct from builders	New construction
For Sale By Owner	Sometimes better deals

Home Tour Checklist

Area	What to Check
Exterior	Roof, siding, foundation cracks
Kitchen	Appliances, cabinets, counters
Bathrooms	Water pressure, drainage, mold
Bedrooms	Size, closets, windows
Basement	Water damage, odors, cracks
Systems	HVAC age, water heater, electrical
Neighborhood	Noise, traffic, neighbors

How Many Homes to See

Situation	Recommendation
Hot market	See 5-10, move fast
Balanced market	See 10-20
Buyer’s market	Take your time, negotiate

Step 7: Make an Offer

Offer Components

Element	Description
Price	Based on comps and strategy
Earnest money	1-3% of offer price
Financing	Loan type, down payment
Contingencies	Inspection, financing, appraisal
Closing date	Usually 30-45 days
Inclusions	Appliances, fixtures
Escalation clause	Auto-increase up to max

Offer Strategy by Market

Market Type	Strategy
Seller’s market	Above asking, fewer contingencies
Balanced market	At or near asking, standard terms
Buyer’s market	Below asking, more contingencies

Negotiation Tactics

Situation	Tactic
Multiple offers	Strong price, clean offer
Home needs work	Lower offer, cite repairs
Motivated seller	Flexible on their needs
Cash offer (if possible)	Big advantage

Step 8: Handle Inspections

Types of Inspections

Inspection	Cost	Why
General home	$300-$500	Overall condition
Pest/termite	$75-$150	Wood damage
Radon	$150-$200	Health concern
Sewer/septic	$200-$400	Major expense if failed
Lead paint	$300-$400	Pre-1978 homes
Mold	$300-$600	If suspected

What Inspectors Check

System	Issues Found
Roof	Age, damage, leaks
Foundation	Cracks, settling
Electrical	Code issues, safety
Plumbing	Leaks, pipe condition
HVAC	Age, efficiency, function
Structure	Walls, floors, framing

After Inspection

Result	Options
Minor issues	Proceed as-is
Moderate issues	Request repairs or credit
Major issues	Renegotiate or walk away

Step 9: Secure Financing

Mortgage Application

Required Documents	Notes
Preapproval documents	Updated if old
Purchase agreement	Signed contract
Earnest money receipt	Proof of deposit
Additional asset statements	If required
Gift letters	If receiving gift funds

Loan Processing Timeline

Step	Timeline
Application	Day 1
Processing	Days 2-15
Underwriting	Days 15-25
Clear to close	Days 25-35
Closing	Days 35-45

Do’s and Don’ts Before Closing

Do	Don’t
Keep making payments	Change jobs
Save receipts for large deposits	Open new credit accounts
Respond quickly to lender	Make large purchases
Stay at current job	Move money around

Step 10: Get Appraisal

About Appraisals

Aspect	Details
Who orders	Lender orders, you pay
Cost	$350-$600
Timeline	1-2 weeks
Purpose	Confirms value for lender

Appraisal Outcomes

Result	What Happens
At or above purchase price	Proceed normally
Below purchase price	Negotiate, pay difference, or walk
Low with issues	May affect loan approval

If Appraisal Is Low

Option	Details
Negotiate lower price	Seller accepts appraised value
Pay the difference	Cash above loan amount
Challenge the appraisal	Request reconsideration
Walk away	Use appraisal contingency

Step 11: Final Walkthrough

What to Check

Item	Confirm
Agreed repairs	Were they completed?
Appliances	All present and working
Utilities	Water, HVAC, electrical
Fixtures	Lights, ceiling fans
Cleanliness	Seller cleaned
No new damage	Since last visit
Seller moved out	All belongings removed

Walkthrough Timing

When	Best Practice
Schedule	24 hours before closing
Duration	30-60 minutes
Bring	Contract, inspection report
Who attends	You, agent, maybe contractor

Step 12: Close on Your Home

What Happens at Closing

Activity	Details
Review documents	Read carefully before signing
Sign paperwork	50-100+ pages
Pay closing costs	Wire or certified check
Transfer title	Ownership changes
Receive keys	You’re a homeowner!

Closing Costs Breakdown

Cost	Amount
Loan origination	0.5-1% of loan
Appraisal	$350-$600
Title insurance	$500-$2,000
Attorney fees	$500-$1,500 (if required)
Recording fees	$100-$500
Prepaids (taxes, insurance)	Varies
Total	2-5% of loan amount

Documents to Keep

Document	Why
Closing Disclosure	Loan terms, final costs
Promissory note	Loan agreement
Deed of trust/mortgage	Security instrument
Title insurance policy	Ownership protection
Seller disclosures	What seller revealed
Inspection reports	Baseline condition

After Closing

First Week

Task	Timeline
Change locks	Day 1
Set up utilities	Before move
Update address	Week 1
File homestead exemption	Week 1-4
Get homeowners insurance	Before closing
Change HVAC filters	Week 1

First Month

Task	Timeline
Meet neighbors	First few weeks
Locate shutoffs	Water, gas, electrical
Set up security	If desired
Schedule maintenance	HVAC, gutters
Create home inventory	For insurance

Common First-Time Buyer Mistakes

Financial Mistakes

Mistake	How to Avoid
Not getting preapproved first	Get preapproval before shopping
Maxing out budget	Borrow less than approved
Ignoring closing costs	Budget 2-5% extra
Making big purchases before closing	Wait until after keys

House Hunting Mistakes

Mistake	How to Avoid
Skipping inspection	Always inspect
Emotional bidding	Set firm max price
Moving too slow in hot market	Be ready to act
Focusing only on cosmetics	Look at structure, systems

Quick Reference Checklist

Before Shopping

Check credit reports and scores
Calculate debt-to-income ratio
Save down payment (3-20%)
Save for closing costs (2-5%)
Build emergency fund (3-6 months)
Get preapproved

While Shopping

Hire agent
Define must-haves vs nice-to-haves
Tour homes (5-20)
Research neighborhoods

Under Contract

Submit earnest money
Complete inspection
Negotiate repairs if needed
Finalize mortgage application
Get appraisal
Review Closing Disclosure
Complete final walkthrough
Wire closing funds

Closing Day

Bring ID and certified funds
Review and sign documents
Receive keys
Celebrate!