How to Buy a House in 2026: 12-Step Complete Guide

Pull all 3 credit reports free at AnnualCreditReport.com. You need 580+ for FHA, 620+ for conventional. Dispute errors — 1 in 5 reports has mistakes. Pay down credit cards below 10% utilization to gain 30–50 points in 30 days.

You need 3–20% down + 2–5% closing costs. On a $350K home: $10,500 down (3%) + $10,500 closing costs = $21,000 minimum. Check down payment assistance programs — many offer $5K–$25K in grants.

Pre-approval is a real credit check with income/asset verification. Compare at least 3 lenders — rates vary by 0.5%+ between lenders, which is $30,000+ over 30 years. Takes 10 minutes online.

Buyer's agents are free to you — the seller pays their commission (typically 2.5–3%). Interview 3 agents. Look for someone who specializes in your target area and price range.

List non-negotiables (bedrooms, commute, school district) vs. nice-to-haves. In 2026, the average buyer tours 8 homes before making an offer. Set up alerts on Zillow, Redfin, and Realtor.com.

Your agent will run comps (comparable sales). In 2026, 23% of homes sell above list price. Include an escalation clause in competitive markets. Keep contingencies — they protect you. Earnest money: 1–3% of purchase price.

Cost: $300–$500. Never skip it. Inspectors check 400+ items. Common issues: roof ($5K–$15K), HVAC ($3K–$8K), foundation ($5K–$50K). Use findings to negotiate repairs or price reduction.

Rate locks last 30–60 days. Lock as soon as your offer is accepted — rates can move 0.25%+ in a week. Compare final Loan Estimates from multiple lenders before committing.

Your lender orders an appraisal ($500–$700). If it comes in below purchase price, you can: negotiate seller down, pay the gap in cash, or walk away. In 2026, 8% of appraisals come in low.

Underwriters verify all your documents. Respond to requests within 24 hours to avoid delays. Don't change jobs, open new credit, or make large purchases during this period. Avg underwriting time: 30–45 days.

Verify all agreed repairs are done. Check all appliances work. Confirm nothing was removed that should stay. This is your last chance to catch issues before you own the home.

Bring: government ID, certified check or wire transfer for closing costs, proof of homeowners insurance. You'll sign 100+ pages of documents. The whole process takes 1–3 hours. After recording, you get the keys!