September 2, 2026
How to Buy a House in 5 Steps
Mortgage
FDIC-Insured – Backed by the full faith and credit of the U.S. Government
FDIC-Insured – Backed by the full faith and credit of the U.S. Government
FDIC-Insured – Backed by the full faith and credit of the U.S. Government
“The home buying process doesn’t have to be overwhelming — knowing what to expect at each step puts you in control.”
Buying a house is one of the biggest financial decisions you’ll ever make — but it doesn’t have to be one of the most confusing. Whether you’re a first-time buyer trying to understand where to even start, or you’ve been through the process before and want a clear refresher, this guide walks you through every step.
You don’t always need a perfect credit score or a 20% down payment to buy a home.
From the moment you start seriously looking to the day you get the keys, buying a house typically takes 30 to 90 days — though your timeline will depend on a number of factors.
Here’s a general breakdown:
A competitive housing market, seller negotiations, inspection issues, or financing delays can all extend your timeline. FHA and VA loans often take longer — sometimes 60–77 days — due to additional program requirements, but cash remains the fastest way to buy a home. Cash buyers can sometimes close in as little as 7–10 days.
Getting pre-qualified before you begin shopping can help keep the process moving and establish a realistic budget.
Before you schedule a single showing, it’s worth taking an honest look at where your finances stand. Lenders will review three main areas:
Credit Score: Mortgage credit standards have shifted. A 620 credit score is no longer a universal minimum for conventional loans backed by Fannie Mae or Freddie Mac, and eligibility may depend on your broader financial profile and the loan program. Individual lenders and loan programs may still have their own credit requirements, and a higher credit score can generally improve your financing options and terms. For FHA loans, the minimum is 580 with 3.5% down, or 500–579 with a 10% down payment.
Debt-to-Income Ratio (DTI) Your DTI compares your total monthly debt payments to your gross monthly income. For conventional loans, lenders typically prefer a DTI at or below 43–45%, though some may allow up to 49% with compensating factors. FHA loans can allow DTIs up to 50% in some cases. Pay down high-balance credit cards before applying if you can — it makes a measurable difference.
Down Payment and Savings You do not always need 20% down to buy a house. For first-time homebuyers, conventional loans (such as Fannie Mae HomeReady or Freddie Mac Home Possible) can require as little as 3% down. Repeat buyers typically need a minimum of 5%. FHA loans require 3.5% down with a 580+ credit score. Texas also has down payment assistance programs that may help cover part or all of your down payment.
Beyond the down payment, budget for closing costs — typically 2–5% of the loan amount — and keep some cash in reserve after closing.
Note: Conventional loans with less than 20% down typically require private mortgage insurance (PMI). Borrowers may be eligible to request its removal as they build equity in the home.
With your pre-qualification letter in hand, you’re ready to shop. Work with a licensed real estate agent who knows your target area — they have access to listings, market data, and negotiation experience that can protect you throughout the process.
As you search, keep a few things in mind:
Don’t let market pressure push you into a decision you’re not ready to make.
You may not need as much cash upfront as you think. Texas offers several assistance programs for eligible buyers — here’s what you need to know
Learn MoreOnce you’ve found a home you love, your real estate agent will help you craft a competitive offer. This includes:
In a competitive market, sellers may receive multiple offers. Your pre-qualification letter, a reasonable price, and a clean offer with minimal contingencies strengthen your position.
Once the seller accepts your offer, you’re “under contract,” and the timeline for completing due diligence begins. In Texas, buyers typically have an option period (often 7–10 days) during which they can back out for any reason.
Home Inspection: Hire a licensed home inspector to evaluate the property’s condition. The inspector will check the foundation, roof, electrical, plumbing, HVAC, and more. If significant issues are found, you can negotiate repairs, a price reduction, or in some cases, walk away.
Appraisal: Your lender will order an independent appraisal to confirm the home’s market value. If the home appraises for less than the purchase price, you may need to renegotiate with the seller, adjust your financing, or cover some or all of the difference in cash, depending on the terms of your purchase agreement.
Final Loan Processing: While due diligence is underway, your lender is processing your loan. Avoid making large purchases, opening new credit accounts, or changing jobs during this period — any of these can affect your loan approval.
Whether purchasing a home or refinancing, knowing what documents you need upfront when applying for a home loan can streamline the approval process, saving you time and money.
Get ready for closeClosing day is when ownership officially transfers from the seller to you. At least three business days before closing, you’ll receive a Closing Disclosure from your lender — federal law requires lenders to provide this document at least 3 business days before the closing date. Review it carefully and compare it with your Loan Estimate to ensure nothing unexpected has changed.
On closing day, you’ll:
The entire closing appointment usually takes one to two hours. Once the transaction is complete, the house is yours.
Buying a house becomes easier to navigate when you understand the process and prepare early. Start with your finances, get pre-qualified, and ask questions throughout the process.
At TRB, our mortgage team is here to guide you from application to closing. Whether you’re buying your first home or your fifth, we make the process straightforward.
Disclosures:
Texas Regional Bank Mortgage, NMLS Number 804865. All loans subject to approval, including credit approval. Some Restrictions may apply. Texas Regional Bank Mortgage may change the products, services, and other information described on this site at any time. Texas Regional Bank Mortgage does business as TRB Mortgage in the State of Texas.
