Buying Your First House For Dummies Apr 2026

Before browsing listings, ensure your "financial house" is in order to avoid disappointment later.

Buying your first house is a multi-step process that requires balancing your personal "affordability number" with the technical requirements of lenders. This guide breaks down the journey from financial preparation to receiving your keys. Phase 1: Financial Preparation buying your first house for dummies

Determine a comfortable monthly payment based on your actual income and bills rather than just what a bank might approve. A common guideline is the 28/36 rule : housing costs should not exceed 28% of your gross monthly income, and total debt should stay below 36%. Before browsing listings, ensure your "financial house" is

Most lenders require a minimum score of 620 for approval. You can check your score for free at AnnualCreditReport.com. Save for Upfront Costs: You can check your score for free at AnnualCreditReport

Budget an additional 2% to 6% of the home's purchase price for various fees.

While 20% is the "gold standard" to avoid private mortgage insurance (PMI), many programs like FHA loans allow as little as 3.5% down.

This formal check by a lender provides a pre-approval letter (typically valid for 60–90 days) that proves to sellers you are a serious and qualified buyer. Phase 2: Building Your Team