Buying a place feels big, but you don’t have to guess. Here’s a simple playbook to go from scroll to keys.
We’ll cover what lenders check, credit score targets, and down payment paths. You’ll get a clear checklist, the docs to gather, and quick ways to boost approval odds.
You’ll learn how to compare loans, pick the right team, and plan closing costs. No jargon, just moves that work.
What are the requirements to buy a house?
Stable income, qualifying credit, money for down payment and closing costs, required docs, full preapproval, a trusted agent and lender, and a clear plan from offer to close.
Key Takeaways
- Know your budget, credit score, and DTI before you shop.
- Save for down payment, closing costs, and a 3-month reserve.
- Get fully pre-approved and compare at least 2–3 lenders.
- Build a team: agent, lender, inspector, attorney, insurance.
- Make clean offers, keep inspection and appraisal, and close on time.
Quick Answer — The Buyer Checklist
Buying a home should feel like a smart move, not a maze. Here’s the cheat code. You need money set aside, clean credit, core documents, pre approval, a solid team, and a clear path from offer to close.
Start with budget and cash for down payment and closing costs. Pull your credit, fix errors, and gather pay stubs, bank statements, and ID. Get pre approval so sellers take you seriously. Line up your agent, lender, attorney, and inspector. Then follow the steps, offer, appraisal, title work, closing, keys. Simple, clean, no guesswork.
Check Your Financial Readiness
You want the keys, not surprises. Do a quick money check, then move smart.
Credit score and DTI basics: Shoot for a credit score of 670 or higher. Keep debt to income under 36 percent. Pay cards down, set payment alerts, and fix errors fast.
Savings targets: Plan a down payment that fits your loan type. Add closing costs of 2 to 5 percent and cash reserves for at least three months. Use auto transfers and stash tax refunds to build the pot.
Employment and income stability: Lenders like a steady two year work story. Avoid big job jumps before closing. Got a side hustle. Keep clean records and tax returns. Get a preapproval to lock your real budget.
Understand Upfront Costs
Buying a home is not just the sticker price. Know the cash you’ll bring on day one.
Down Payment Options
- Conventional can be as low as 3 percent, stronger scores help.
- FHA is 3.5 percent and friendly to thinner credit.
- VA and USDA are zero down if you qualify.
- Stack solutions, gift funds, state programs, and employer perks can cover gaps.
Closing Costs and Prepaids
- Plan for 2 to 5 percent of the price. That covers lender fees, title, appraisal, taxes, insurance, and interest.
- Cut the bill by shopping lenders and title quotes.
- Ask for seller credits or a small lender credit.
- If cash is tight, trade a slightly higher rate for lower upfront costs.
Get Mortgage Pre Approval
Think of pre approval as your green light. It shows sellers you are serious and tells you exactly what price range is real, not fantasy.
Grab your paperwork first. Pay stubs, W2s, bank statements, and a photo ID. Then shop two or three lenders, compare fees, and ask about rate types. Fixed keeps payments steady. Adjustable starts lower, then can change, better if you plan to move sooner. Get your letter in hand and set alerts to watch rates. Now you can tour homes with confidence, make faster offers, and skip messy surprises.
Prepare for the Home Search
Set your budget, not your dreams. Check your credit, clean up small debts, and save for closing and moving. Get a fast mortgage preapproval so sellers take you seriously.
Make a must have list and a nice to have list. Pick neighborhoods, commute limits, and school needs.
Line up your squad, agent, lender, and inspector. Set alerts and tour times so the good places do not slip by. Bring preapproval, your VIP pass.
Work with the Right Pros
Start with a sharp buyer agent who knows your target blocks and deal flow. Pair them with a lender that gives quick preapproval and explains numbers in plain English. That duo is your cheat code for speed and clean decisions.
Line up an inspector, a real estate attorney, and an insurance broker early. Ask for sample reports and clear fees so nothing sneaks up on you. Put everyone in one group chat and keep replies tight, problems solved the same day.
Make a Competitive Offer
Lead with a clean, confident offer. Have your preapproval and funds ready. Ask your agent for recent comps so you price with intent.
Use strong earnest money and a short timeline. Keep inspection and appraisal, just tighten deadlines to show you are serious.
Add sweeteners sellers like. Offer flexible closing, cover a few minor repairs, or include an escalation clause with a cap. Write a simple offer packet that is easy to accept. Limit requests for freebies and extra warranties.
Inspections and Appraisal
Book a home inspection as soon as your offer gets accepted. A sharp inspector catches leaks, wiring issues, and roof drama before they land on you. Use the report to push for repairs or a price cut.
Next comes the appraisal ordered by your lender. It checks that the home value matches the loan. If it comes in low, challenge with comps, ask the seller to drop the price, or bring a little extra cash.
From Underwriting to Clear to Close
Underwriting checks your file, then flags conditions. Think pay stubs, updated bank statements, a letter on that large deposit. Send clean copies fast.
Next, your lender clears appraisal and title. Ask for a conditions list, one contact, and timeline. Lock your rate and confirm homeowners insurance.
Once the Closing Disclosure lands, review fees, wire instructions, and cash to close. E sign, then wait for the magic words, clear to close.
Closing Day Checklist
Bring photo ID, wired funds or cashier’s check, proof of homeowners insurance, and your closing disclosure. Do a final walk through, confirm utilities transfer, and verify wire details with the title company. Ask last minute questions, take meter photos, grab keys, and keep digital copies of everything just in case.
Post Closing Essentials
Change the locks, set up utilities and internet, and forward your mail.
Scan and store your closing docs, warranty info, and HOA rules, then set calendar reminders, total cheat code.
Build a small home fund, set up auto pay on the mortgage, and file any homestead tax forms.
First Time Buyer Programs & Grants
Look at FHA, VA, and USDA loans for low down payments and credit. Many states offer down payment help and closing cost grants through housing finance agencies.
Check your income limits, credit, and price caps. Stack programs when allowed. Ask a lender to match you with options and handle paperwork.
FAQs on Home Buying Basics
What credit score do I need to buy a house?
Aim for 620 or higher for many conventional loans. FHA can work with 580, but expect stricter terms.
How much should I save for a down payment and closing costs?
Target 3 to 20 percent down, depending on loan. Save 2 to 5 percent for closing costs and reserves.
Is pre-qualification the same as pre-approval?
Prequalification is a quick estimate based on self reported info. Preapproval verifies docs with a lender, stronger for offers.
How long does the home-buying process usually take?
From first search to keys, plan 30 to 60 days after contract. Add time for shopping, inspections, and appraisal.
Can I buy with student loans or a high DTI?
Yes, if payments fit the lender limit. Reduce DTI by paying debts, adding income, or using a co borrower.
Common Mistakes to Avoid
Skipping preapproval: You shop blind. Get preapproval so sellers take you seriously.
Emptying savings on the down payment: You lose your safety net. Keep cash for closing and repairs.
Ignoring the full monthly cost: Do not price only the mortgage. Add taxes, insurance, fees, and upkeep.
Waiving inspections: That invites regret. Keep the inspection or have a pro walk the home.
