# How to buy your first home, step by step

> The path from savings to keys in 12 steps: credit, savings, programs, pre-approval, Loan Estimates, offer, inspection, appraisal, Closing Disclosure.

URL: https://mortgage-math-us.com/first-time-buyers/step-by-step/  
Last reviewed: 2026-10-28 · By the MortgageMath US Editorial team

## Quick answer

Start months ahead by checking your credit and saving for the down payment, closing costs of 2%–5% of the price and a cash cushion. Then get pre-approved — keeping mortgage credit checks within 45 days so they count as one inquiry — compare Loan Estimates, which lenders must send within 3 business days of your application, make an offer with inspection and appraisal contingencies, and review your Closing Disclosure, which must arrive at least 3 business days before you sign.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Mortgage credit checks in this window count as one | 45 days | [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/) | Aug 28, 2026 |
| Loan Estimate arrives within | 3 business days | [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/) | Oct 28, 2026 |
| Appraisal copy due before closing (or promptly) | 3 business days | [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) | Oct 28, 2026 |
| Closing Disclosure arrives before closing | 3 business days | [CFPB](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/) | Oct 28, 2026 |
| Closing costs, high end of the CFPB range | 5% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |

## The 12 steps from savings to keys

**How to buy your first home**

1. **Check your credit and debts** — Pull your free credit reports, fix errors, and add up every monthly debt payment. Freddie Mac suggests keeping housing costs below 30% of gross income and all debts below 45%; see [debt-to-income](https://mortgage-math-us.com/buying/debt-to-income/) for how lenders count.
2. **Set a savings target** — Plan for the down payment, closing costs of 2%–5% of the price, moving costs and a cushion for repairs. [Saving for a home](https://mortgage-math-us.com/first-time-buyers/saving-for-a-home/) works out targets and timelines.
3. **Find the help you qualify for** — Check national loan programs and your state housing finance agency’s assistance before you settle on a budget. Start with [first-time buyer programs](https://mortgage-math-us.com/first-time-buyers/programs/) and check [who counts as a first-time buyer](https://mortgage-math-us.com/first-time-buyers/who-counts-as-first-time/).
4. **Take a homebuyer education course** — Many assistance programs require one, and Fannie Mae does when all borrowers are first-time buyers and the loan-to-value is above 95%. Doing it early helps with every later step.
5. **Get pre-approved** — A lender checks your credit, income and assets and states how much it will lend. Apply with several lenders within 45 days, so their credit checks show up as a single inquiry. More in [mortgage pre-approval](https://mortgage-math-us.com/buying/pre-approval/).
6. **Compare Loan Estimates** — Each lender must send a standard Loan Estimate within 3 business days of a full application. Compare the rate, points, lender fees and cash to close, not just the monthly payment.
7. **Shop for a home within your budget** — Choose a payment you are comfortable with, not the most a lender will approve. Check each listing’s property taxes, HOA dues and likely insurance cost before you fall for it.
8. **Make an offer** — Your agent writes the contract and you put down earnest money. Inspection, appraisal and financing contingencies protect that deposit if something goes wrong.
9. **Inspect the home and get the appraisal** — The inspector checks condition; the appraiser checks value for the lender. You must get a copy of the appraisal promptly or at least 3 business days before closing.
10. **Finish underwriting and lock your rate** — Answer document requests quickly. Don’t open new credit, make large unexplained deposits or change jobs until after closing.
11. **Review the Closing Disclosure** — It must reach you at least 3 business days before closing. Compare it line by line with your last Loan Estimate and ask about every difference.
12. **Close and get the keys** — Do a final walk-through, bring your cash to close by a verified wire or cashier’s check, sign the note and mortgage or deed of trust, and collect the keys.

## How long each stage takes

Most of the waiting happens before you ever make an offer. Saving and fixing credit can take months or years; the stretch from accepted offer to closing usually takes several weeks and is set by your contract’s deadlines. A handful of federal rules set the clock along the way:

*The deadlines that set the pace*

| Stage | Typical timing | Rule that applies |
|---|---|---|
| Credit and savings | Months to years before you buy | — |
| Pre-approval and rate shopping | Shortly before you start touring homes | Mortgage credit checks within 45 days count as one inquiry |
| Loan Estimate | Right after you apply | Sent within 3 business days of the application |
| Inspection | Early in the contract period | Set by your contract’s inspection deadline |
| Appraisal | During underwriting | Copy promptly, or at least 3 business days before closing |
| Closing Disclosure | Just before closing | Received at least 3 business days before closing |

If the APR rises by more than 0.125%, the loan product changes or a prepayment penalty is added after you receive the Closing Disclosure, the lender must give you a new one and a new 3 business days wait starts. Plan your move-out date with a few days of slack.

## What the money looks like

> **Worked example: First home at $360,000 (near the US median value), 5% down, 30-year fixed at an example rate of 7.24%**
>
> | Cash needed up front | Amount |
> |---|---:|
> | Down payment (5%) | $18,000 |
> | Closing costs at 2%–5% | $7,200–$18,000 |
> | **Cash to close** | **$25,200–$36,000** |
> 
> | Monthly payment | Amount |
> |---|---:|
> | Principal and interest on $342,000 | $2,331 |
> | Property tax at 0.89% | $267 |
> | Homeowners insurance | $147 |
> | PMI (midpoint of Freddie Mac’s range) | $171 |
> | **Total** | **$2,916** |
> 
> On the US median household income of $81,604/yr, that payment is $2,916 out of $6,800 a month, or about 43% — compare that with the 30% guideline before you shop.

Assistance programs, seller credits toward closing costs and a lower price all shrink the first table; a larger down payment and a better credit score shrink the second. Try your own numbers in the [affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/).

[Open the affordability calculator](https://mortgage-math-us.com/tools/affordability-calculator/)

## Mistakes to avoid at each step

> **Tip: Keep your finances still until closing**
>
> Lenders often re-check credit and employment just before closing. A new car loan, a new credit card or a job change can change the approval, so wait until you have the keys.

Other common slips — skipping the inspection, comparing rates instead of total costs, or forgetting taxes and insurance — are covered in [first-time buyer mistakes to avoid](https://mortgage-math-us.com/first-time-buyers/mistakes-to-avoid/). Once you move in, look into your state’s homestead exemption, which lowers the taxable value of a primary residence in many states; in Texas, for example, school districts exempt $140,000 of a homestead’s value, and you have to apply for it.

## Frequently asked questions

### What is the first step to buying a house?

Check your credit reports and add up your monthly debts. That tells you which loans you can get and what payment you can carry; lenders and Freddie Mac’s guidance both start from your debt-to-income ratio.

### How long does it take to buy a first home?

Preparing — saving and improving credit — can take months or years. Once an offer is accepted, closing usually takes several weeks, depending on your contract deadlines, the appraisal and underwriting.

### How much money do I need to buy my first house?

The down payment plus closing costs plus a cushion. On a $360,000 home with 5% down, that is $18,000 down and about $7,200–$18,000 in closing costs before moving costs and reserves.

### Should I get pre-approved before looking at houses?

Yes. A pre-approval shows sellers you can get financing and stops you falling for a home a lender won’t finance. Apply with several lenders within 45 days so the credit checks count as one inquiry.

### When do I get the Closing Disclosure?

At least 3 business days before closing. If the APR rises by more than 0.125%, the loan product changes or a prepayment penalty is added, you get a new disclosure and a new waiting period.

### Do I need a homebuyer education course?

Only for some loans and programs. Fannie Mae requires one when all borrowers are first-time buyers and the loan-to-value is above 95%, and many state assistance programs require one for every borrower.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=010XX00US) — Median household income (2024 ACS 1-year)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income; Freddie Mac guidance: total debt payments below this share of gross income (Jan 22, 2026)
- [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/) — Mortgage credit checks within this window count as one inquiry (Aug 28, 2026)
- [CFPB](https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/) — Lender must send the Loan Estimate within this many business days of your application (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/) — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- [Fannie Mae Selling Guide B2-2-06](https://selling-guide.fanniemae.com/sel/b2-2-06/homeownership-education-and-housing-counseling) — Fannie Mae requires homebuyer education above this LTV when all borrowers are first-time buyers (Nov 5, 2025)
- [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
- [12 CFR 1026.22](https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-C/section-1026.22) — APR change that triggers a new 3-business-day wait (regular loans) (Oct 28, 2026)
- [Texas Comptroller](https://comptroller.texas.gov/taxes/property-tax/exemptions/) — School district residence homestead exemption (Dec 11, 2025)
- [CFPB: What happens when a mortgage lender checks my credit?](https://www.consumerfinance.gov/ask-cfpb/what-exactly-happens-when-a-mortgage-lender-checks-my-credit-en-2005/)
- [CFPB: Closing Disclosure explainer](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/)
- [CFPB: Regulation B 1002.14, rules on providing appraisals](https://www.consumerfinance.gov/rules-policy/regulations/1002/14)

_General information, not financial advice._