# How to Buy a House in 2026: Complete Guide By Opendoor Editorial Team | 2019-05-30 > Buying a house is exciting, but can also be stressful. We’ll walk through the key steps of the home buying process, from starting your search to closing the deal. ## Key Takeaways # How to Buy a House in 2026: Complete Guide Buying a house is one of the biggest financial decisions you'll ever make — and one of the most rewarding. But between mortgage jargon, competing offers, and stacks of paperwork, the process can feel like learning a new language while running a marathon. This guide walks you through every step, from checking your credit score to picking up the keys, so you can approach your home purchase with clarity and confidence. [Get your offer](#) ## What you need to buy a house Buying a house starts with assessing your finances, getting pre-approved for a mortgage, and finding a real estate agent to guide you through the process. From there, you'll search for homes within your budget, make an offer, negotiate terms, complete inspections, and close. Most buyers save for a down payment (typically 3% to 20% of the purchase price) and closing costs (2% to 5% of the loan amount). Before you start browsing listings, lenders will evaluate four main areas: - **Credit score:** Most loan programs look for a minimum between 580 and 620, though higher scores typically mean better interest rates. - **Proof of income:** Lenders want to see W-2s, tax returns, and pay stubs covering the past two years to verify steady employment. - **Debt-to-income ratio (DTI):** This is the percentage of your monthly income that goes toward debt payments. Most lenders prefer a DTI below 43%. - **Savings:** Beyond the down payment, you'll want reserves for closing costs and unexpected expenses after move-in. ## How much house can you afford Your budget involves more than the purchase price. Monthly costs include principal, interest, property taxes, homeowners insurance, and maintenance. A home that looks affordable on paper can stretch your finances if you don't account for the full picture. ### Calculating your home buying budget A common guideline suggests keeping total housing costs at or below 28% of your gross monthly income. Online [affordability calculators](https://www.opendoor.com/articles/how-to-determine-how-much-home-you-can-afford) offer a starting point, but a lender will give you a more accurate number based on your complete financial profile. The goal is to find a payment you can handle comfortably, not just one you technically qualify for. ### Down payment requirements for buying a home You might have heard that 20% down is standard. That's not always true. Many buyers put down far less, with [first-time buyers averaging 10%](https://www.nerdwallet.com/mortgages/learn/average-down-payment-on-a-house), depending on the loan type they choose. Putting down less than 20% on a conventional loan usually means paying private mortgage insurance (PMI), which adds to your monthly payment until you build enough equity. ### Closing costs to expect when purchasing a house Closing costs cover lender fees, title insurance, escrow fees, and prepaid property taxes. The total typically runs 2% to 5% of your loan amount. On a $300,000 loan, that's $6,000 to $15,000. In some cases, you can negotiate with the seller to cover a portion of closing costs, and your agent can help you explore that option. ## Steps to buying a house The home buying process follows a logical sequence, though timelines vary based on your market and financing situation. Here's what to expect from start to finish. ### 1. Check your credit score and financial health Pull your free credit report from each of the three major bureaus: Equifax, Experian, and TransUnion. Review the reports for errors, and if your score is lower than you'd like, consider paying down existing debt before applying for a mortgage. Avoid opening new credit accounts during this time, as lenders notice sudden changes. ### 2. Get pre-approved for a mortgage Pre-approval is a lender's conditional commitment based on verified income, assets, and credit. It tells you how much you can borrow and signals to sellers that you're a serious buyer. Pre-approval differs from pre-qualification, which is a quicker estimate based on self-reported information and carries less weight. ### 3. Find a real estate agent A buyer's agent represents your interests throughout the transaction. They help you find properties, write offers, and negotiate on your behalf. In most cases, the seller pays the agent's commission, so working with an agent typically costs you nothing directly. ### 4. Start your home search Create a list of features you want: location, number of bedrooms, yard size, commute time. Then separate the non-negotiables from the nice-to-haves. Online listing tools, saved searches, and virtual tours can streamline your search, though nothing replaces walking through a home in person. ### 5. Make an offer on a house When you find the right home, your agent will help you draft a purchase offer. The offer includes your proposed price, [earnest money deposit](https://www.opendoor.com/articles/earnest-money) (a good-faith payment, usually 1% to 3% of the price), contingencies, and your preferred closing date. The seller can accept, reject, or counter your offer. ### 6. Complete the home inspection A professional inspector evaluates the property's condition: roof, foundation, plumbing, electrical, HVAC, and more. The inspection report helps you understand what repairs might be needed and gives you leverage to negotiate before closing. Most inspections [cost $300 to $500](https://www.bankrate.com/real-estate/how-much-does-home-inspection-cost/) and take two to three hours. ### 7. Get the home appraised Your lender orders an [appraisal](https://www.opendoor.com/articles/home-appraisal-process) to confirm the home's market value matches the loan amount. If the appraisal comes in lower than your offer, you may have a few options: renegotiate the price, increase your down payment to cover the gap, or walk away if your contract allows. ### 8. Negotiate repairs or credits Based on the inspection, you can ask the seller to make repairs, reduce the price, or provide credits toward your closing costs. Not every issue is a [deal-breaker](https://www.opendoor.com/articles/seven-home-inspection-deal-breakers). A leaky faucet is different from foundation cracks. Your agent can help you prioritize what matters most. ### 9. Do a final walk-through A day or two before closing, you'll walk through the home one last time. This is your chance to confirm that agreed-upon repairs were completed and the property is in the expected condition. Check that appliances work, fixtures are intact, and nothing has changed since your last visit. ### 10. Close on your new home At closing, you'll sign loan documents, transfer funds, and receive the keys. The process typically takes one to two hours. Bring your ID, proof of funds for closing costs, and review your closing disclosure carefully beforehand. The [closing disclosure](https://www.opendoor.com/articles/how-to-read-a-closing-disclosure-what-to-look-for) is a document your lender sends at least three business days before closing that itemizes all costs. ## How to get pre-approved for a mortgage [Pre-approval](https://www.opendoor.com/articles/mortgage-preapproval) is one of the most important early steps. It clarifies your budget and strengthens your position when making offers in competitive markets. ### Pre-qualification versus pre-approval Pre-qualification gives you a rough estimate based on information you provide, with no documentation required. Pre-approval involves a lender verifying your income, assets, and credit through actual documents. Sellers take pre-approval letters more seriously because they indicate you've already passed an initial review. ### Documents you need for mortgage pre-approval Gather the following before you apply: Recent pay stubs (typically covering 30 days) W-2s and tax returns from the past two years Bank statements showing your savings and assets Government-issued identification Having documents ready speeds up the process and shows lenders you're organized. ### Types of mortgages to consider Fixed-rate mortgages keep your interest rate steady for the life of the loan, which means predictable monthly payments. Adjustable-rate mortgages (ARMs) start with a lower rate that can change after an initial period, usually five or seven years. Government-backed loans like [FHA](https://www.opendoor.com/articles/what-is-an-fha-loan-and-how-does-it-work), VA, and USDA offer more flexible requirements for eligible buyers. Your lender can help you compare options based on your credit score, down payment, and long-term plans. ## How to find the right home House hunting takes patience. The clearer you are about your priorities, the more efficient your search becomes. ### Creating your must-have list Think about what you can't compromise on: proximity to work, a certain school district, or a minimum number of bedrooms. Then list the features you'd love but could live without, like a finished basement or a two-car garage. This framework helps you and your agent focus on homes that truly fit. ### Using online tools and apps Most buyers start their search online. Features like saved searches, instant alerts, and virtual tours let you narrow down options before scheduling in-person visits. Technology can save you time, though it's still important to see properties firsthand before making decisions. ### Touring homes and attending open houses When you visit a home, look beyond the staging. Check storage space, water pressure, and natural light. Visit the neighborhood at different times of day to get a sense of traffic and noise. Take notes and photos after each showing, as details can blur together after a few visits. ## How to make an offer on a house Making an offer is often the most nerve-wracking part of the process. A well-crafted offer balances competitiveness with protection. ### What to include in your offer Your offer letter typically includes the purchase price, earnest money amount, financing details, contingencies, and your proposed closing timeline. Your agent drafts the document and submits it to the seller or their representative. The earnest money deposit shows you're serious and typically gets applied toward your down payment at closing. ### Understanding contingencies Contingencies are conditions that protect you if something goes wrong. Common contingencies include: - **Inspection contingency:** Lets you back out or renegotiate if the inspection reveals major issues. - **Appraisal contingency:** Protects you if the home appraises below your offer price. - **Financing contingency:** Allows you to exit if your loan falls through. Waiving contingencies can make your offer more competitive, but it also increases your risk. ### Negotiating in a competitive market In a hot market, standing out matters. A strong pre-approval letter, flexible closing date, or larger earnest money deposit can make your offer more attractive. Your agent can advise on local conditions and what sellers in your area respond to. ## How long does it take to buy a house The timeline varies, but here's a general breakdown: - **Pre-approval:**[Typically around 10 days](https://www.sofi.com/learn/content/how-long-does-a-preapproval-for-mortgage-take/) - **Home search:** Varies widely based on market and preferences - **Offer to closing:** Typically 30 to 45 days From start to finish, many buyers complete the process in two to four months. Competitive markets or financing delays can extend that timeline. ## How to buy a house while selling your current home Coordinating a sale and purchase at the same time can feel overwhelming. The timing rarely lines up perfectly, but there are ways to simplify the process. ### Coordinating your sale and purchase timeline Aligning closing dates is tricky. Some buyers include a sale contingency in their offer, meaning the purchase depends on selling their current home first. This approach can make your bid less competitive. Others arrange rent-back agreements, where the seller stays in the home temporarily after closing, or find short-term housing to bridge the gap. ### Exploring trade-in and bridge options Trade-in programs let you buy your new home before selling your current one. Companies like Opendoor offer cash offers and flexible timelines, giving you certainty and control over your move. This approach eliminates the stress of juggling two transactions at once. If you're considering selling your current home, [get a free, no-obligation cash offer](https://www.opendoor.com/address-entry) to see your options. [Get your offer](#) ## Start your home buying journey with confidence Buying a home is a significant milestone, and with the right preparation, it's absolutely achievable. Take it one step at a time: check your finances, get pre-approved, find an agent you trust, and stay patient during the search. If selling your current home is part of the equation, Opendoor can help you move forward on your terms. [Get a free, no-obligation cash offer](https://www.opendoor.com/address-entry) and see how simple selling can be. | **City** | **Explore Opendoor guides to neighborhoods in your area** | | Raleigh | [Historic Oakwood](https://www.opendoor.com/neighborhood-guide/historic-oakwood-raleigh), [Downtown](https://www.opendoor.com/neighborhood-guide/downtown-raleigh), [Boylan Heights](https://www.opendoor.com/neighborhood-guide/boylan-heights-raleigh), [Cameron Village](https://www.opendoor.com/neighborhood-guide/cameron-village-raleigh), [Five Points](https://www.opendoor.com/neighborhood-guide/five-points-raleigh), [North Hills](https://www.opendoor.com/neighborhood-guide/north-hills-raleigh), [Stonehenge](https://www.opendoor.com/neighborhood-guide/stonehenge-raleigh), [Wakefield](https://www.opendoor.com/neighborhood-guide/wakefield-raleigh), [Brier Creek](https://www.opendoor.com/neighborhood-guide/brier-creek-raleigh) | | Charlotte | [Uptown](https://www.opendoor.com/neighborhood-guide/uptown-charlotte), [Dilworth](https://www.opendoor.com/neighborhood-guide/dilworth-charlotte), [South End](https://www.opendoor.com/neighborhood-guide/south-end-charlotte), [Elizabeth](https://www.opendoor.com/neighborhood-guide/elizabeth-charlotte), [Belmont](https://www.opendoor.com/neighborhood-guide/belmont-charlotte), [Plaza Midwood](https://www.opendoor.com/neighborhood-guide/plaza-midwood-charlotte), [NoDa](https://www.opendoor.com/neighborhood-guide/noda-charlotte), [Camp North End](https://www.opendoor.com/neighborhood-guide/camp-north-end-charlotte), [Eastover](https://www.opendoor.com/neighborhood-guide/eastover-charlotte), [Myers Park](https://www.opendoor.com/neighborhood-guide/myers-park-charlotte), [Providence Plantation](https://www.opendoor.com/neighborhood-guide/providence-plantation-charlotte), [Ballantyne](https://www.opendoor.com/neighborhood-guide/ballantyne-charlotte) | | Plano | [Whiffletree](https://www.opendoor.com/neighborhood-guide/whiffletree-plano), [Legacy West](https://www.opendoor.com/neighborhood-guide/legacy-west-plano), [Kings Ridge](https://www.opendoor.com/neighborhood-guide/kings-ridge-plano), [Deerfield](https://www.opendoor.com/neighborhood-guide/deerfield-plano), [Shoal Creek](https://www.opendoor.com/neighborhood-guide/shoal-creek-plano), [Ridgeview Ranch](https://www.opendoor.com/neighborhood-guide/ridgeview-ranch-plano), [Willow Bend](https://www.opendoor.com/neighborhood-guide/willow-bend-plano), [West Plano](https://www.opendoor.com/neighborhood-guide/west-plano-plano), [Lakeside on Preston](https://www.opendoor.com/neighborhood-guide/lakeside-on-preston-plano), [Avignon Windhaven](https://www.opendoor.com/neighborhood-guide/avignon-windhaven-plano) | | Dallas | [Uptown](https://www.opendoor.com/neighborhood-guide/uptown-dallas), [Highland Park](https://www.opendoor.com/neighborhood-guide/highland-park-dallas), [Knox-Henderson](https://www.opendoor.com/neighborhood-guide/knox-henderson-dallas), [Lower Greenville](https://www.opendoor.com/neighborhood-guide/lower-greenville-dallas), [Bishop Arts District](https://www.opendoor.com/neighborhood-guide/bishop-arts-district-dallas), [Lakewood](https://www.opendoor.com/neighborhood-guide/lakewood-dallas), [Oak Lawn](https://www.opendoor.com/neighborhood-guide/oak-lawn-dallas), [Victory Park](https://www.opendoor.com/neighborhood-guide/victory-park-dallas), [Deep Ellum](https://www.opendoor.com/neighborhood-guide/deep-ellum-dallas), [Preston Hollow](https://www.opendoor.com/neighborhood-guide/preston-hollow-dallas) | | Fort Worth | [Downtown](https://www.opendoor.com/neighborhood-guide/downtown-fort-worth), [West 7th/Cultural District](https://www.opendoor.com/neighborhood-guide/west-7th-cultural-district-fort-worth), [Arlington Heights](https://www.opendoor.com/neighborhood-guide/arlington-heights-fort-worth), [Rivercrest](https://www.opendoor.com/neighborhood-guide/rivercrest-fort-worth), [TCU/University](https://www.opendoor.com/neighborhood-guide/tcu-university-fort-worth), [Fairmount](https://www.opendoor.com/neighborhood-guide/fairmount-fort-worth), [Ridglea Hills](https://www.opendoor.com/neighborhood-guide/ridglea-hills-fort-worth), [Benbrook](https://www.opendoor.com/neighborhood-guide/benbrook-fort-worth), [North Richland Hills](https://www.opendoor.com/neighborhood-guide/north-richland-hills-fort-worth), [Keller](https://www.opendoor.com/neighborhood-guide/keller-fort-worth) | | Phoenix | [Willo](https://www.opendoor.com/neighborhood-guide/willo-phoenix), [Encanto](https://www.opendoor.com/neighborhood-guide/encanto-phoenix), [Arcadia](https://www.opendoor.com/neighborhood-guide/arcadia-phoenix) | | Mesa | [Eastmark](https://www.opendoor.com/neighborhood-guide/eastmark-mesa) | | Scottsdale | [Old Town Scottsdale](https://www.opendoor.com/neighborhood-guide/old-town-scottsdale-scottsdale) | | Los Angeles | [Silver Lake](https://www.opendoor.com/neighborhood-guide/silver-lake-los-angeles), [Los Feliz](https://www.opendoor.com/neighborhood-guide/los-feliz-los-angeles), [Studio City](https://www.opendoor.com/neighborhood-guide/studio-city-los-angeles) | | Oakland | [Upper Dimond](https://www.opendoor.com/neighborhood-guide/upper-dimond-oakland), [Laurel](https://www.opendoor.com/neighborhood-guide/laurel-oakland) | | Seattle | [Capitol Hill](https://www.opendoor.com/neighborhood-guide/capitol-hill-seattle) | --- *Originally published at [https://www.opendoor.com/articles/how-to-buy-a-house](https://www.opendoor.com/articles/how-to-buy-a-house)*