How to buy a house in 2026: A step-by-step guide

Buying a home can feel like a lot to take on, but breaking it down into clear steps makes the process much easier to navigate. With the right research and planning behind you, you can move forward with confidence at every stage, from setting your budget all the way to signing your closing documents and walking away with the keys.

Key takeaways:

• Before you start house hunting, review your credit score, debt-to-income ratio, and savings to understand what you can realistically afford.
• Most lenders recommend keeping your monthly housing costs at or below 28% of your gross monthly income.
• Down payment assistance programs, state grants, and zero-down loan options can help buyers with limited savings get into a home.

Before you buy a house

Buying a home is one of the biggest financial moves you will make, and the process involves more than finding a house you love. Before you start touring homes or talking to lenders, it's worth taking a step back to ensure the timing is right for you, both personally and financially.

Decide if buying makes sense for you

Homeownership is not the right move for everyone at every stage of life. A few key factors can help you decide. How long do you plan to stay in the area? If the answer is fewer than 3 – 5 years, renting may be the smarter short-term choice. Is your income stable and your debt manageable? Do you have savings set aside for upfront costs? If the answer to any of those questions is uncertain, it may be worth waiting until your financial picture is more settled. If you’re wondering, “Should I buy a house?” this guide can help you think it through.

Know why you want to buy

Knowing your motivations helps you make a clearer decision and stay focused during a process that can take months. Common reasons people buy include wanting to build equity, having more control over their living space, putting down roots in a community, or meeting the needs of a growing family. Whatever your reasons, writing them down can help you stay grounded when the process feels stressful.

How to buy a house in 13 steps

Step 1: See if you meet the requirements to buy a house

Getting your finances in order is the first step toward buying a home. Here are the main financial and credit criteria lenders look at:

• Credit score: The minimum credit score required varies by loan type. For conforming conventional loans, lenders have historically required at least 620, though Fannie Mae has moved toward a more holistic review process. FHA loans allow scores as low as 580 with a 3.5% down payment.¹ You can review what score you may need at the credit score to buy a house guide.
• Debt-to-income ratio (DTI): Your DTI is your total monthly debt payments divided by your gross monthly income. Most lenders want a DTI of 43% or lower.
• Income and employment: Lenders review your income and work history to confirm you can afford the loan. They typically ask for 2 years of employment history and supporting documents such as W-2s, tax returns, and pay stubs.
• Personal savings: You will need funds for your down payment and closing costs. It is also smart to keep an emergency reserve of several months of expenses in a savings account or liquid investment.

Step 2: Calculate how much house you can afford

Figuring out how much you can afford to spend on a house helps you stay within a comfortable budget and avoid being surprised by the true cost of homeownership.

A widely used guideline is to keep your total monthly housing costs at or below 28% of your gross monthly income. For example, if you earn $6,000 per month before taxes, that translates to a maximum housing payment of about $1,680. Your housing costs include principal, interest, property taxes, homeowners insurance, and mortgage insurance if applicable.

To pin this down, look at your income, monthly expenses, down payment, and interest rate. You'll also want to factor in ongoing expenses — such as homeowners insurance, property taxes, and maintenance. You can also visit our how much should I spend on a house guide or use the Rocket Mortgage home affordability calculator to run the numbers.

Step 3: Save for a down payment and closing costs

What down payment do you need to buy a house?

Let's look at the minimum down payment for different mortgage types:

Putting more than the minimum down comes with benefits, including a wider range of loan options, a potentially lower interest rate, and the ability to avoid private mortgage insurance (PMI).

Step 4: Explore down payment assistance and grants

If saving for a down payment is a challenge, you may have more options than you realize. Down payment assistance (DPA) programs exist at the federal, state, and local levels, as well as through private nonprofit organizations. These programs can offer grants, forgivable second mortgages, deferred-payment loans, or below-market-rate financing to help cover your down payment and closing costs.

HUD maintains a list of home buying programs by state that covers assistance options across the country. Your state's housing finance agency is typically the best place to start. Income limits, purchase price caps, and homebuyer education requirements are common eligibility criteria, but these vary widely by program and location.

Rocket Mortgage also offers a down payment assistance guide with more details on how these programs work and how to find one in your area.

Step 5: Decide what type of mortgage is right for you

Step 7: Get preapproved for a mortgage

A mortgage preapproval is a letter from a lender stating how much you are qualified to borrow. It is not a legally binding commitment, but it demonstrates to sellers that you are a serious buyer.

The preapproval process typically involves:

• Completing a mortgage application
• A hard pull of your credit
• Providing documents such as a government-issued ID, pay stubs, bank statements, and tax returns

Step 8: Find the right real estate agent for you

Finding the right real estate agent can make a significant difference in your home buying experience. Look for someone who knows your target area well, has experience working with buyers in your price range, and communicates in a way that works for you. Ask trusted friends and family for referrals, read online reviews, and interview a few candidates before committing. A good agent will help you identify homes that fit your needs, guide you through negotiations, and keep the process moving from offer to closing.

Step 9: Begin house hunting

With your preapproval letter in hand, you can begin looking for a house. Consider what is most important to you: price, square footage, location, school districts, walkability, proximity to work, and access to parks or public transit.

It helps to sort your priorities into must-haves and nice-to-haves. This keeps your search focused and prevents you from feeling overwhelmed. Review our home buying checklist and home buying rules for more guidance as you search.

Step 10: Make an offer on a house

When you find the right home, you will work with your real estate agent to submit a formal offer through an offer letter. The offer letter outlines your proposed purchase price and any conditions you want to include. Requirements vary by state, so your agent will make sure the right forms are completed correctly for your market.

You will also need to include earnest money, a good-faith deposit that shows the seller you are serious about buying. Earnest money is typically 1% to 3% of the offer price, though it can be higher in competitive markets. The funds are held in escrow and applied toward your down payment or closing costs at closing.

Once you submit your offer, the seller can accept it, reject it, or come back with a counteroffer. Be prepared for some back and forth before both sides land on agreed-upon terms.

Step 11: Complete your inspection, appraisal and negotiations

After your offer is accepted, schedule a home inspection to evaluate the property’s condition. Your lender will also order a home appraisal to confirm the home’s value supports the loan amount.

Your purchase contract may include contingencies that help protect you. An appraisal contingency can allow you to back out or renegotiate if the appraisal comes in lower than the purchase price. An inspection contingency can allow you to request repairs, renegotiate the price, or walk away if significant issues are found.

If the seller is unwilling to negotiate and your contingencies allow it, you may be able to cancel the contract and recover your earnest money.

Step 12: Do a final walk-through

Your final walk-through, sometimes called a blue tape walk-through, is your last chance to confirm the home is in the agreed-upon condition before closing. Use this time to verify that any requested repairs have been completed, that the home has been cleaned and vacated, and that all appliances and systems are working as expected.

Step 13: Close on your new home

Three business days before closing, your lender is required to send you a Closing Disclosure. Review it carefully. It outlines your final loan terms, monthly payment, interest rate, and itemized closing costs. Compare it to your Loan Estimate to confirm nothing has changed unexpectedly.

At closing, you will sign the settlement statement, mortgage note, and deed of trust. You’ll also need to bring your cash to close, which covers your down payment, closing costs, and any other prepaid items. Payment is typically made by wire transfer or cashier's check. Once everything is signed and funds are transferred, you will receive the keys to your new home.

First-time home buyer programs and down payment help

Coming up with a down payment is one of the biggest hurdles for many buyers, especially first-time home buyers purchasing a home for the first time. The good news is that you do not have to do it alone. A wide range of programs exist to help buyers with limited savings cover upfront costs, and many people who qualify for this assistance do not even know it’s available to them.

Down payment assistance programs

Down payment assistance programs provide financial help toward the upfront costs of buying a home. They are available from federal, state, and local government agencies, as well as nonprofit organizations. Common forms of assistance include:

• Grants that do not need to be repaid
• Forgivable second mortgages that are eliminated after you live in the home for a set number of years
• Deferred-payment loans that do not require repayment until you sell or refinance
• Below-market-rate mortgages through state housing finance agencies

Many programs have income limits, purchase price caps, and requirements like completing a home buyer education course. Your state housing finance agency and HUD's state-by-state resource directory are good starting points for finding what’s available where you live.

State-specific grants and FHA loans

State housing agencies administer many of the most generous assistance programs available to first-time buyers. These vary widely by state but often include low-interest first mortgages, matching savings programs, and grant funds. HUD also offers special programs such as the Good Neighbor Next Door program for eligible teachers, law enforcement officers, firefighters, and emergency medical technicians.

FHA loans are a popular choice for first-time buyers because they require a down payment as low as 3.5% and have more flexible credit requirements than many conventional loans. Many state DPA programs are specifically designed to be paired with FHA financing. You can learn more at FHA.gov.

Can you buy a house with no money down?

Yes, in some cases. VA loans allow eligible servicemembers, veterans, and surviving spouses to buy with no down payment and no PMI. USDA loans offer 100% financing for buyers in eligible rural areas who meet income limits. For buyers who do not qualify for either program, certain down payment assistance programs can cover the full down payment, effectively enabling a zero-cash purchase in those areas. See our full guide on how to buy a house with no money down for more detail.

Buying a house FAQ

Can I buy a house if I make $3,000 a month?

It depends on your full financial picture, including your debts, down payment, and the local housing market. Using the 28% guideline, a $3,000 gross monthly income suggests a maximum housing payment of around $840. In many markets, that rules out a conventional purchase, but you may still qualify for certain loan programs or down payment assistance depending on your location. Reviewing our how much income do I need to buy a house guide can help you understand your options.

Is $10,000 enough to put down on a house?

It depends on the purchase price and loan type. On a home priced around $333,000, a 3% down payment comes to roughly $10,000, which means $10,000 could be enough to meet the minimum for a conventional loan in that price range. For an FHA loan, 3.5% down on a $285,000 home also lands close to that number. That said, your down payment is only part of what you need at closing. Closing costs typically add another 2% – 5% of the purchase price on top of your down payment, so you’ll want to make sure you have enough to cover both. Down payment assistance programs may be able to help bridge the gap if your savings are tight. See our full guide on how much money you need to buy a house for a full breakdown.

Can I afford a $300K house on a $70K salary?

It is possible, depending on your debt load and the loan terms you qualify for. A $70,000 annual salary equals roughly $5,833 per month in gross income. Applying the 28% guideline, that suggests a maximum housing payment of about $1,633 per month.⁶ Depending on your down payment, interest rate, property taxes, and insurance costs, a $300,000 home may fall within reach. Our home affordability calculator can help you model specific scenarios.

How long does the process of buying a house take?

The total timeline varies, but the home buying process from accepted offer to closing typically takes 30 – 60 days. The full timeline from starting your search to closing can span a few months to over a year depending on how quickly you find a home and how prepared your finances are.

The amount you need depends on the purchase price, loan type, and where you live, but there are a few baseline costs every buyer should plan for. At minimum, you will need enough to cover your down payment, which can range from 0% for eligible VA and USDA borrowers to 3% or more for conventional and FHA loans. On top of that, closing costs typically run between 2% and 5% of the purchase price. It is also smart to keep several months of living expenses in reserve after closing for emergencies, unexpected repairs, and other costs that come with owning a home. Our guide on how to budget for a house can help you map out exactly what you will need before you start the process.

Is 2026 a good time to buy a house?

The answer depends more on your personal situation than on market conditions. If your finances are in order, you have found a home you can comfortably afford, and you plan to stay in the area for several years, it can be a good time to buy regardless of where interest rates stand. Trying to time the market is rarely a reliable strategy, and waiting for the perfect conditions can mean missing out on the right home. If rates are higher than you would like right now, keep in mind that you may be able to refinance⁵ later if they improve. The best time to buy is when you are financially ready.

How do I prepare to buy a house in 6 months?

Start by reviewing your credit report and addressing any errors or outstanding debts. Build up your savings for a down payment and closing costs. Reduce your DTI by paying down existing debts where possible. Research loan programs and get a sense of what you can afford using a home affordability calculator. Six months gives you enough time to make meaningful progress on all of these fronts before you apply for preapproval.

The bottom line: Buying a house is hard but rewarding

Buying a home involves a lot of steps, but each one brings you closer to building equity and putting down roots. With the right preparation and the right team on your side, homeownership is within reach for more people than many realize. If you’re looking to do the whole procedure online, review our full home buying process guide, or take the next step and apply for a mortgage preapproval with Rocket Mortgage today.

¹To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12 months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of nonsufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

²The 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.

³Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

⁴Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, assets and debt. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, including, but not limited to satisfactory insurance, appraisal and title report/search, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close due to a Rocket Mortgage error, you will receive the $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional conditions or exclusions may apply.

⁵Refinancing may increase finance charges over the life of the loan.

⁶Any figures, interest rates, loan examples, and market data referenced in this article are hypothetical or aggregated for educational purposes only. They are not intended to reflect current pricing, available terms, or personalized loan options for any consumer. This content does not constitute an advertisement of credit terms, a solicitation or offer to extend credit, or a rate quote under federal or state lending laws. Actual mortgage rates and terms are determined by individual financial qualifications, property characteristics, market conditions, and other factors, and are subject to change without notice.

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