You can buy a house in about six months if you treat the first two months as financial prep and leave the rest for searching and closing. Most buyers spend roughly ten weeks touring homes and another 30 to 60 days closing on a loan, so a six-month plan gives you a realistic cushion without much room to stall.1My Home by Freddie Mac. Understanding the Homebuying Timeline Everything below is built around that timeline.
Months 1 and 2: Fix the Money Side First
Pull Your Credit and Set a Real Budget
Your credit score decides which loan programs you qualify for and what rate you pay. FHA loans accept scores as low as 580 with a 3.5% down payment, or 500 with 10% down. Conventional loans backed by Fannie Mae and Freddie Mac usually want at least 620, and some lenders set their floor higher. Pull reports from all three bureaus in month one so you have time to dispute errors or pay down balances before you apply.
Budget past the sticker price. Down payments run from 3% on a conventional loan to 3.5% on FHA, and anything under 20% down brings private mortgage insurance. Closing costs add another 2% to 5% on top. Knowing the full cash figure before you shop keeps you from falling for a house you can’t actually close on.
Assemble the Paperwork Lenders Will Ask For
Standard documentation includes two years of federal tax returns and W-2s (or business returns if you’re self-employed), at least 60 days of consecutive bank statements, and recent pay stubs. Underwriters trace the source of your down payment funds, so unexplained large deposits will get flagged. Fannie Mae’s guidelines look for a two-year income history to establish that your earnings are stable and likely to continue.2Fannie Mae. Underwriting Factors and Documentation for a Self-Employed Borrower
Missing paperwork is the single most common cause of pre-approval delays. Gather everything in month one and every later step gets easier.
Know Your Debt-to-Income Ratio
Lenders divide your monthly debt payments by your gross monthly income to get your debt-to-income ratio. Fannie Mae’s automated underwriting will approve DTIs up to 50%, but approval is far easier below 36%.3Fannie Mae. B3-6-02, Debt-to-Income Ratios If yours sits above 45%, paying off a car loan or credit card before you apply can meaningfully raise how much house you qualify for.
Get Pre-Approved, Not Just Prequalified
Prequalification is a rough estimate. Pre-approval means the lender has verified your income, pulled your credit, and committed to a specific loan amount in writing. Sellers treat pre-approved buyers seriously because the financing risk is largely resolved.
Most pre-approval letters are valid for 60 to 90 days, so line this up for the end of month two, right before you start touring homes seriously.4Experian. How Long Does a Mortgage Preapproval Letter Last If your search runs long, the lender can refresh the letter with updated documents.
Once you submit a full mortgage application, the lender must deliver a Loan Estimate within three business days.5eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions It shows your projected interest rate, monthly payment, and closing costs. Use it to compare offers if you’re shopping multiple lenders.
One rule for this whole phase: don’t open new credit cards, finance furniture, or make large purchases. Lenders re-check your credit before closing, and a new debt can undo your approval even after you’ve found the house.
Down Payment and Loan Choices
Conventional loans require as little as 3% down. FHA loans require 3.5% at credit scores of 580 or higher. Putting down 20% avoids PMI entirely.
For 2026, the conforming loan limit for a single-unit home in most of the country is $832,750.6FHFA. FHFA Announces Conforming Loan Limit Values for 2026 Borrowing more than that means a jumbo loan, which typically requires a larger down payment and a higher credit score.
Many states and localities run down payment assistance programs for first-time buyers who meet income limits. Some are forgivable loans, others are matching grants. Check your state housing finance agency’s website early, since some programs require a homebuyer education course before you can apply.
Months 2 to 4: Find the House
Sign a Buyer-Broker Agreement
Since August 2024, you must sign a written buyer-broker agreement before an agent can tour homes with you. It spells out the services, the geographic area, the length of the relationship, and exactly how the agent gets paid — flat fee, hourly, or a percentage.7National Association of REALTORS. Consumer Guide to Written Buyer Agreements Read it carefully. Compensation is no longer a background arrangement; you’re agreeing to it upfront.
A good buyer’s agent earns the fee by pulling comparable sales, spotting problems on walkthroughs you’d miss, and negotiating hard. They also see listings the moment they hit the market, which matters in areas where homes sell in days.
Narrow the Search Before You Tour
The typical buyer visits about ten homes over ten weeks before making an offer.1My Home by Freddie Mac. Understanding the Homebuying Timeline Nail down your non-negotiables before you start: commute, school district, minimum bedrooms, and a price ceiling that includes property taxes and insurance rather than just the mortgage payment. Researching tax rates in the neighborhoods you’re targeting prevents a nasty surprise after closing.
Watch whether homes in your area are selling above or below asking price. Low inventory means moving faster and possibly offering over list. A buyer’s market gives you room to negotiate. Your agent can pull that data from recent comps.
Months 4 and 5: Make the Offer
The Purchase Agreement
When you find the right home, your agent drafts a purchase agreement stating your price, down payment, proposed closing date, and any personal property included. The seller can accept, reject, or counter on price, date, or repair credits. Once both sides sign, the contract is legally binding and starts the due diligence clock.
Contingencies Worth Keeping
Contingencies are clauses that let you back out or renegotiate if certain conditions aren’t met. The common ones:
- Inspection contingency: the right to hire a professional inspector and negotiate repairs or walk away if serious problems surface.
- Appraisal contingency: protection if the home appraises below your offer. Without it, you’d have to cover the gap in cash.
- Financing contingency: an exit if your mortgage falls through despite pre-approval.
- Home sale contingency: time to sell your current home first. Sellers dislike this one, so expect pushback in competitive markets.
Waiving contingencies makes an offer more attractive and removes your safety net at the same time. The inspection and appraisal contingencies are the two that most often save buyers from expensive mistakes. Think hard before dropping either.
Earnest Money
Earnest money is a deposit showing the seller you’re serious. It isn’t technically required, but sellers expect it. Deposits typically run 1% to 5% of the purchase price and sit in an escrow account held by a neutral third party.8My Home by Freddie Mac. What Is Earnest Money and How Does It Work If the deal closes, it credits toward your down payment. If you walk away outside the protection of a contingency, you risk losing it.
Month 5: Inspections, Appraisal, and Title
The Home Inspection
Hire a licensed inspector as soon as the purchase agreement is signed. Over three to four hours the inspector examines the roof, foundation, electrical, plumbing, and HVAC, then delivers a written report of every observed defect. A standard inspection generally costs $300 to $425 depending on the home’s size and location. This is where the problems the seller didn’t mention (or didn’t know about) surface.
The report often opens a second round of negotiation. You can ask for repairs, a price cut, or a closing credit. If the problems are severe, the inspection contingency is what lets you walk away.
Specialized Inspections Worth Considering
A standard inspection doesn’t cover everything. Depending on the property and region:
- Radon testing: an odorless gas that seeps from the ground and causes lung cancer. Continuous monitoring runs about $150 to $200 and returns results immediately, which is more reliable than a mail-in charcoal kit during a real estate transaction.
- Sewer scope: a camera inspection of the sewer line can reveal root intrusion, collapsed pipes, or deterioration that would cost thousands to repair.
- Mold and termite inspections: common in humid climates and can catch structural damage that isn’t visible on a walkthrough.
Add-ons are worth it on older homes. Replacing a sewer line after closing costs far more than the $200 to $400 spent on a scope beforehand.
The Appraisal
Your lender orders an independent appraisal to confirm the property is worth what they’re lending. A certified appraiser visits the home, evaluates it, and compares it to recent nearby sales. The lender receives the report and uses it to check the loan-to-value ratio against their requirements.
If the appraisal comes in low, you can negotiate a price reduction, cover the gap in cash, split the difference, or walk away if the appraisal contingency is in place. Appraisals usually take up to two weeks depending on market volume and appraiser availability, which is often what sets the pace for the rest of closing.1My Home by Freddie Mac. Understanding the Homebuying Timeline
Title Search and Title Insurance
The title company searches public records to confirm the seller has clear ownership. Common issues that surface: unpaid tax liens, outstanding mortgages from previous owners, errors in the legal description, boundary disputes, and unrecorded easements. Any of these clouds must be cleared before closing.
Your lender will require a lender’s title insurance policy, which protects the bank if a title defect surfaces later. It covers only the loan balance and ends when the mortgage is paid off. An owner’s title policy, bought separately, protects your full equity for as long as you own the home. It’s optional but worth the one-time premium; a defect from decades ago can appear years after closing, and without coverage the cost of defending your ownership falls on you.
Month 6: Closing
The Final Walkthrough
Schedule a final walkthrough within 24 hours of closing. Confirm that agreed repairs are done, no new damage has appeared, the seller has moved out, and every fixture included in the sale is still there. Once you sign, anything you missed becomes yours to fix.
The Closing Disclosure
Your lender must deliver the Closing Disclosure at least three business days before you sign.5eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions Compare it line by line to the Loan Estimate you received during pre-approval. It shows your final interest rate, monthly payment, and every fee: loan origination, title insurance, government recording, prepaid taxes and insurance.
If anything changed significantly, ask your lender to explain why before signing day. Certain fee increases are capped by federal rules, and you shouldn’t accept unexplained jumps.
Signing and Transfer of Ownership
At the closing table you sign the promissory note (your promise to repay the loan), the deed of trust (which gives the lender a security interest in the property), and a stack of supporting documents. Bring a government-issued photo ID. Payment for closing costs happens by wire transfer or cashier’s check; personal checks are almost never accepted.
Once the lender funds the loan, the settlement agent records the new deed with the county recorder. That filing officially transfers ownership. In most transactions you get the keys the same day.
What Closing Costs Actually Include
Closing costs typically run 2% to 5% of the purchase price for the buyer. On a $400,000 home, that’s $8,000 to $20,000 on top of your down payment. Major line items:
- Loan origination fee, usually 0.5% to 1% of the loan amount.
- Appraisal fee, typically $300 to $500.
- Title search and insurance, which vary by state and property value but often total $1,000 to $3,000 for lender’s and owner’s policies combined.
- Government recording fees, generally $25 to $100.
- Prepaid items: several months of property taxes and homeowners insurance collected upfront to fund your escrow account.
- Transfer taxes, where applicable, running from 0% to about 2.5% depending on location.
Every item shows up on your Closing Disclosure. Some are negotiable, and some are fixed by law.
First Weeks After You Get the Keys
Keep the closing documents, title insurance policy, and inspection report somewhere safe. You’ll need the closing statement to calculate capital gains when you eventually sell.
If you put down less than 20%, you’re paying PMI. You can request cancellation once the loan balance reaches 80% of the home’s original appraised value, and your lender must automatically terminate it at 78% under the original amortization schedule, as long as you’re current on payments.9Federal Reserve. Homeowners Protection Act Compliance Handbook
Most states offer a homestead exemption that reduces the taxable value of your primary residence. Some states apply it automatically at closing; others require you to file with your county by a set deadline during your first year. Check your county property appraiser’s site within weeks of closing so you don’t miss a year of savings.
If you itemize your federal taxes, you can deduct interest on up to $750,000 of mortgage debt ($375,000 married filing separately).10Internal Revenue Service. Publication 936, Home Mortgage Interest Deduction Your lender sends Form 1098 each January showing interest paid the previous year. Federal tax legislation enacted in July 2025 may affect these limits, so verify current figures on IRS.gov before you file.
Then set a maintenance schedule for the systems the inspector evaluated: HVAC filters, water heater flushes, roof checks. The repair bills that used to be your landlord’s problem now belong to you, and deferred maintenance gets expensive fast.