How to buy a house: Your step-by-step guide to buying in 2026

Your financial health is the primary factor in securing a home loan.

Buying a house in 2026 requires meeting several financial, legal, and procedural criteria to ensure you are ready for homeownership. Lenders generally evaluate your creditworthiness, income stability, and available cash reserves before approving a mortgage.

To verify your financial profile, lenders will require a comprehensive set of legal and financial records:

: Most conventional loans require a minimum score of 620 , though FHA loans can accept scores as low as 580 with a 3.5% down payment. Higher scores (740+) typically unlock the best interest rates.

: This compares your monthly debt payments to your gross monthly income. Lenders typically prefer a DTI of 43% or lower , with some suggesting a "28/36 rule" where housing costs don't exceed 28% of your gross income.

: While 20% is the standard to avoid private mortgage insurance (PMI), many programs allow for much less. FHA loans require 3.5% , and some programs like VA or USDA loans may offer 0% down options for qualified buyers.