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

Buying a home can be overwhelming. There are a lot of steps to bear in mind, and you might be nervous about missing something or getting the details of the process wrong. That said, with proper research and planning, you can feel confident and empowered on your home buying journey.

Here, we'll walk you through the entire process of buying a home in 2026. That way, you can know exactly what to expect and be well informed – and empowered:

How to buy a house in 11 steps

Having know-how and understanding what to expect at each step of buying a house can make for a smoother process.

Let's look at each of the main steps of the home buying journey, from doing your research to closing on your home.

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

Buying a house is a big financial step of major importance. Getting your finances in order helps you move forward confidently. Let's take a look at the main financial and credit criteria for buying a house:

• Credit score: The minimum credit score to qualify for conforming conventional mortgages has historically been 620. Recently, Fannie Mae has followed Freddie Mac in removing minimum credit scores, and moved to more holistic approach to mortgage approval. Credit is still an important factor, however.
• Debt-to-income ratio (DTI): Your debt-to-income ratio (DTI), which is your monthly debt payments divided by your gross monthly income, is used to assess how likely it is for you to pay back your home loan. While it may vary by loan type, most lenders want you to have a DTI of 43% or lower.
• Income and employment: Lenders will also look at your income and employment history to make sure you can take on the mortgage and afford your payments. They usually ask to see 2 years of work history and proof of income through W-2s, tax returns, and pay stubs. 
• Personal savings: Having sufficient cash reserves that you can tap into to cover your down payment and closing costs is also important. You'll also want to have some cash reserves on hand as an emergency fund.  This might include money in a savings account or CD, and investments that can be sold and converted to cash.

Step 2: Calculate how much you can spend on a house

Figuring out how much you can afford to spend on a house can ensure you can comfortably stay on top of your mortgage and other housing expenses. By doing your proper research, you won't be blindsided by the total costs of owning a home.

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, maintenance and repairs, and for any emergencies that might pop up. You can use the Rocket Mortgage home affordability calculator to see how much you can reasonably afford on a home.

Step 3: Save for a down payment and closing costs

A down payment and closing costs are up-front costs that you'll need to pay when you purchase a home. The down payment is what you offer when you take out a mortgage and lowers how much you owe on the loan.

Closing costs are fees charged by third parties, your real estate agent, and your lender. They can be anywhere from 2% to 5% of the home purchase price. The fees can include origination fees, home inspection and appraisal fees, title search and insurance fees, and recording fees.

When it comes to a down payment, you can use gifted funds, as long as they're from an acceptable source. The rules for gifted funds depend on the loan type. You'll also need to  provide a gift letter at the closing of your loan.

What down payment do you need to buy a house?

Most lenders require at least some money down. And while 20% is often considered the standard down payment amount, it is possible to buy a home with less money down. In fact, some loan types even allow you to buy a home with 0% down payment.

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

There are benefits of offering more than the minimum down payment, such as:

• Having more available mortgage options
• Possibly getting approved for a lower interest rate
• Avoiding private mortgage insurance (PMI)

If you're struggling to save enough on your own – or don't have any money to put down –  down payment assistance programs do exist. You can find this at the federal, state, and local levels. There are also down payment assistance programs offered by private sources.

Step 4: Decide what type of mortgage is right for you

The good news is that there are different types of home loans available. Some have special requirements, so you'll want to check to see if you are eligible. The most popular mortgage types are:

• Conventional loan. A conventional loan is a mortgage that isn't backed by the government. Conventional loans fall under two main camps: conforming loans and nonconforming jumbo loans. The main difference is the maximum loan amounts – $832,750 in 2026 and $1,249,125, respectively. While they might cost less than an FHA loan, they might be harder to get.
• FHA loan. FHA loans are backed by the Federal Housing Administration. You'll need to get a mortgage through a private lender. FHA loans feature down payments as low as 3.5% and lower credit score requirements than many conventional loans.
• VA loan. Designed for servicemembers, veterans, and eligible surviving spouses, VA home loans are backed by the U.S. Department of Veterans Affairs. If you're eligible for a VA loan, you can purchase a home with no down payment, no private mortgage insurance (PMI), and a lower interest rate than other mortgages.
• USDA loan. If you live in a rural part of the U.S., and are part of a low or moderate-income household, you might be eligible for USDA loan. There are technically no credit score requirements, and you don't need to offer a down payment.

Step 5: Get preapproved for a mortgage

When you get a mortgage preapproval from a lender, you receive a letter stating that you're qualified to borrow a certain amount of money to buy a home. Note that it's not a formal, legally binding commitment, but an offer.

The process to get mortgage preapproval usually involves the following:

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

Rocket Mortgage offers a Verified Approval Letter¹. You can speak to a Home Loan Expert for help with the preapproval process.

Step 6: Find the right real estate agent for you

When looking for a real estate agent, find a seasoned professional who specializes in your area and the type of home you're looking for. You can ask your trusted community, friends and family, and look for online reviews to land on the right professional to partner with.

Step 7: Begin house hunting

When house shopping, besides what you can afford, you'll want to consider what’s most important to you. This includes price, square footage, location, safety, proximity to schools, parks, and public transit. You might also consider walkability, and other factors that are on top of your list of priorities, such as local arts and culture or outdoor recreation.

It also might be helpful to note which elements are negotiable, and which are nonnegotiable. This can help you whittle down your options and feel less overwhelmed.

Step 8: Make an offer on a house

Once you've landed on the right house, it's time to put in a formal offer by way of an offer letter. The offer letter can include information about yourself, what you love about the home, and why you'd like to purchase it.

When making an offer on a house, you also need to include earnest money, which is funds you usually put in an escrow account that’s an act of "good faith." This demonstrates that you're serious about buying the property.

When you put an offer on the house, the seller can either accept or reject your offer. Or, if they're open to negotiating, they can make a counteroffer.

Step 9: Complete your home appraisal, inspection, and negotiations

A home inspection is a thorough assessment of a home's condition. During a home inspection, it can help pinpoint any potential problems that could pop up that could be structural or systemic. For example, issues in the exterior, electrical systems, heating and air conditioning, roof, and plumbing.

While lenders don't require a home inspection, it's a good idea to get it done. That way, you can discover any costly issues before you buy the home.

A home appraisal is a formal evaluation of how much a property is worth. Lenders require them as it helps them figure out the loan-to-value (LTV) ratio, which is the percentage of the home's price you'll borrow. The higher the LTV ratio, the riskier the loan is to lenders. Lenders usually look for LTV ratios of no more than 80%.

How does a contingency work?

A contingency is a condition in a purchase offer that you can add to protect yourself. You can include clauses that state that if certain conditions aren't met, you can walk away from your offer.

An appraisal contingency states that if the property you'd like to buy doesn't appraise for the amount that you've agreed to pay, you can back out – and get your earnest money back. An inspection contingency works in a similar fashion. Should the home inspection reveal that the property has significant issues or is unsatisfactory, you can cancel your offer.

Based on the results of the inspection and appraisal, you might need to renegotiate the sale amount. Or, you may need to request repairs or credits based on the results of your appraisal and inspection. If the seller isn't willing to budge and negotiate, the contingency lets you back out of the house offer and get the earnest money back.

Step 10: Do a final walk-through

The final walk-through is your opportunity to check the state of the home and make sure it's in the agreed-upon condition. This is the last step before closing, and ensures the property is clean, damage-free, vacated, and everything is working properly.

Step 11: Close on your new home

The final step of buying a house is the closing. Also known as "settlement," it's when you, the seller, and all other parties involved (attorneys, title insurance company,  lender) in the sale sign the official documents for the mortgage.

Three business days before the closing, the lender will send a Closing Disclosure. The Closing Disclosure includes details of the loan terms, such as the loan amount, interest rate, and monthly principal and interest. It also includes projected payments and closing costs.

At closing, you'll sign the settlement statement, mortgage note, and deed of trust. You'll also need to bring your cash to close to the closing. This includes your down payment, closing costs, and other up-front costs. Once everything is completed and handled, you can walk away with a home loan – and the keys to your new home.

Buying a house FAQ

Here are some of the frequently asked questions about home buying, answered:

How long does the process of buying a house take?

The length of time for the home buying process for a house can vary quite a bit. It's based on a handful of factors, but the closing process itself can take anywhere from 1 to 2 months. Factors that can impact how long it takes includes whether you're buying with cash, if you are taking out a mortgage, or if it's a short sale of a home.

For example, if you've shored up some savings and are prepared to make an offer, it could take just a few months or less. But if you haven’t saved for a down payment yet, it could take a year or more.

How much money should I have before buying a house?

The amount of money you should have to buy a house varies depending on factors like the sale price and down payment. You'll need to have enough shored up for your payment, closing costs, and several months of expenses as an emergency fund.

Is 2026 a good time to buy a house?

The decision to buy a house is a personal one and the answer will be different for everyone. But regardless of what's going on with interest rates and the real estate market at large, mortgage experts often recommend that you buy when you find the right house at the right price point. Whatever the loan terms are, you may be able to refinance your loan later.

The bottom line: Buying a house is hard but rewarding

While buying a house can be challenging with a lot of steps involved, it can be one of the most rewarding, meaningful purchases you make. With the right guidance and mindset, homeownership is certainly achievable. Apply for a mortgage preapproval with Rocket Mortgage today.

¹Participation 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.

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

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.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.