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
3business days
Appraisal copy due before closing (or promptly)
CFPB, Regulation B 1002.14 · Oct 28, 2026
The 12 steps from savings to keys
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 for how lenders count.
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 works out targets and timelines.
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 and check who counts as a first-time buyer.
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.
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.
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.
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.
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.
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.
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.
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.
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:
| 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
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.
Open calculatorMistakes to avoid at each step
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. 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 — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- CFPB — 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 — Median household income (2024 ACS 1-year)
- Freddie Mac My Home — 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 — Mortgage credit checks within this window count as one inquiry (Aug 28, 2026)
- CFPB — Lender must send the Loan Estimate within this many business days of your application (Oct 28, 2026)
- CFPB — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- Fannie Mae Selling Guide B2-2-06 — Fannie Mae requires homebuyer education above this LTV when all borrowers are first-time buyers (Nov 5, 2025)
- CFPB, Regulation B 1002.14 — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
- 12 CFR 1026.22 — APR change that triggers a new 3-business-day wait (regular loans) (Oct 28, 2026)
- Texas Comptroller — School district residence homestead exemption (Dec 11, 2025)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.