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Home buying guide · 2026

How to buy a house: a step-by-step guide

Eight steps, in order. What to do first, what it costs, and how to win the house you want. Read it in ten minutes. Use it for the whole purchase.

In this guide

Know what you can afford
Get pre-approved
Pick your agent
Shop for homes
Make a strong offer
Inspect and appraise
Lock your loan and insurance
Close and get the keys

1. Know what you can afford

Start with the monthly payment you are comfortable with, not the biggest loan a bank will give you. Your payment includes more than the loan:

Principal and interest on the loan.
Property taxes, which change by county.
Homeowners insurance.
Mortgage insurance on a conventional loan with a small down payment, and on most FHA loans.
HOA dues if the home has them.

A common rule of thumb: keep your housing payment near 28% of your gross monthly income, and all your monthly debts near 36%. Lenders may approve more. That does not mean you should borrow it.

Try the affordability calculator →

2. Get pre-approved

A pre-approval is a lender's written estimate of how much you can borrow, after it checks your credit, income and assets. Sellers take pre-approved buyers seriously. Get one before you tour, so you only fall in love with homes you can buy.

You will usually need: two years of W-2s or tax returns, recent pay stubs, two months of bank statements, and a photo ID. Pre-approval letters are usually good for 60 to 90 days.

How to get pre-approved →

3. Pick your agent

Your agent finds homes, sets up showings, writes and negotiates your offer, and keeps the deal on track to closing. Before you tour, you will sign a written agreement with your agent that says what they do and how they are paid. Read it. Ask questions. It is negotiable.

Find a local AXEN agent →

4. Shop for homes

Make two lists: must-haves and nice-to-haves. Location, bedrooms, commute and school zone are hard to change. Paint, floors and fixtures are easy.

Set alerts so you see new listings the day they hit the market.
Tour in person, or by video if you are moving from another state.
Drive the neighborhood at night and at rush hour.

Search homes for sale →

5. Make a strong offer

Your agent pulls recent sales to set your price. Price is not the only thing sellers weigh. A strong offer also has:

A pre-approval letter, or proof of funds for cash.
A solid earnest money deposit.
Contingencies that protect you without scaring the seller.
A closing date that works for the seller.

6. Inspect and appraise

After your offer is accepted, hire a home inspector. They check the roof, foundation, plumbing, electrical, heating and cooling. You can ask the seller for repairs or a credit, or walk away if your contract allows it.

If you have a loan, the lender orders an appraisal to confirm the home is worth the price. If it comes in low, you can renegotiate, cover the gap, or cancel, depending on your contract.

7. Lock your loan and insurance

Lock your interest rate with your lender so it does not change before closing. Buy homeowners insurance early; your lender needs proof before it will fund the loan. Title and escrow will check that the seller can legally sell you the home.

This is the step where most delays happen, because four companies have to agree on one date. At AXEN, your agent, loan, title and insurance can work together at one table. You never have to use an AXEN-affiliated lender, title company or insurer. Ask your agent for the written Affiliated Business Arrangement Disclosure before you choose.

8. Close and get the keys

You will get a Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate. Then:

Do a final walkthrough to confirm the home is in the agreed condition.
Wire your cash to close only after you confirm the instructions by phone with a number you already know. Wire fraud is real.
Bring a photo ID, sign, and get your keys.

What does it cost to buy a house?

Plan for three buckets of cash: your down payment (as little as 0% to 3.5% on some loans, more on others), closing costs (often around 2% to 5% of the price), and move-in money for moving, utilities and repairs. Ask your lender for a Loan Estimate to see your real numbers.

See if you qualify for down payment help →

Ready for step 1? See what you can afford, then get pre-approved.

Straight answers

Home buying questions, answered

What is the first step to buying a house?

Figure out the monthly payment you are comfortable with, including taxes, insurance and any HOA dues. Then get pre-approved by a lender so you know how much you can borrow before you tour homes.

How much do I need for a down payment?

It depends on the loan. Many buyers put down far less than they think, and down payment help can cover part of it. A smaller down payment on a conventional loan usually means paying mortgage insurance until you build enough equity. A loan officer can tell you what fits your case.

How much are closing costs for a buyer?

Buyer closing costs are often around 2% to 5% of the purchase price. They include lender fees, title and escrow fees, prepaid taxes and insurance. Your lender's Loan Estimate shows your actual costs.

How long does it take to buy a house?

Shopping can take a few weeks to a few months. Once your offer is accepted, most financed purchases close in 30 to 45 days.

Do I need a real estate agent to buy a house?

You are not required to use one, but an agent finds homes, writes and negotiates your offer, and manages inspections and deadlines. You will sign a written agreement with your agent before touring that explains what they do and how they are paid.

What credit score do I need to buy a house?

Requirements vary by loan. Many conventional loans look for 620 or higher, and FHA loans can allow lower scores with a larger down payment. A lender can tell you what you qualify for.

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