5 Steps to Buy a Home in 2026: Budget, Mortgage, Offer, Inspection, Closing

Updated October 2026. Rates are from Freddie Mac’s Primary Mortgage Market Survey (October 22, 2026); prices and buyer data are from NAR, read October 27, 2026.

The five steps to buy a home are: set your budget, get preapproved for a mortgage, search and make an offer, inspect the home, and close. As of October 22, 2026, the average 30-year fixed mortgage rate was 7.32% (Freddie Mac), and the median existing-home price in September 2026 was $417,500 (NAR). The search takes as long as it takes; the closing is usually a matter of weeks once your offer is accepted.

Jump to: 💲 Step 1: Budget · 🏠 Step 2: Mortgage · 📍 Step 3: Search and offer · 🪜 Step 4: Inspection · 🤝 Step 5: Closing · ❓ FAQ

Buying a home has always felt like a lot. In 1923, the US Department of Commerce sold a 5-cent handbook called “How to Own Your Home” to walk families through it. The tools have changed. The order of the steps hasn’t. Here they are, with today’s numbers.

Step 1: How much house can you afford?

Start with the monthly payment you’re comfortable with, not the biggest loan a bank will offer. Add up principal, interest, property taxes, homeowners insurance and any HOA dues. Then leave room for repairs and savings.

Here’s a rough example on the September 2026 median price. With 10% down on a $417,500 home, the loan is $375,750. At 7.32% for 30 years, principal and interest come to about $2,581 a month. Taxes and insurance come on top of that, and they vary a lot by county and state.

Plan the cash, too:

• Down payment: first-time buyers put down a median 10% in NAR’s 2025 Profile; repeat buyers put down 23%.
• Closing costs: lender fees, title, recording and prepaid taxes and insurance.
• Moving and setup costs.
• An emergency fund for the first repair.

Renting a little longer while you save is a fair choice. Our guide to finding the perfect 2 bedroom house for rent helps if you go that route.

Step 2: How do you get a mortgage preapproval?

Talk to a lender before you tour homes. A preapproval letter says the lender is generally willing to lend you up to a set amount, based on your income, debts, assets and credit. It isn’t a final loan offer, but sellers take it seriously.

Bring pay stubs, W-2s or tax returns, bank statements and ID. The lender will pull your credit. Compare at least two or three lenders, since rates and fees differ. Ask each one for a Loan Estimate so you can compare them line by line.

Doing this early saves time later. You’ll know your price range, and you can move fast when the right home shows up. Our smart buyer’s guide covers loan types in more depth.

Step 3: How do you search and make an offer?

Start your research as early as you can. Most homes for sale are on the MLS, which feeds the big search sites and sites like beycome.com. Set alerts so you see new listings the day they hit.

Write down your must-haves and nice-to-haves before you look. Location, commute, school district and size usually come first. Paint colors and light fixtures can change later.

Making the offer

When you find the one, look at recent sales nearby to set your price. Your offer usually includes:

• The price and your earnest money deposit.
• Your loan type and down payment.
• Contingencies for financing, appraisal and inspection.
• A proposed closing date.

Expect a counteroffer. Our guide on how to make a competitive offer has more on strategy.

With or without an agent

Using an agent is your choice. In NAR’s 2025 Profile, 88% of buyers used an agent or broker. For the full US house buying process, with costs and rules for foreign buyers, see our longer guide. An agent finds homes, sets up showings, writes the offer and negotiates. You can also buy without one, which means doing that work yourself.

If you use the Beycome buyer program, there’s no upfront fee. It’s open to every buyer on homes listed by other agents. Beycome keeps 1% of the price, with a $1,499 minimum, and credits the rest of the buyer-agent commission at closing, with lender approval. On a $400,000 home with 3% offered, you’d get $8,000 back. The credit can’t apply where no buyer-agent commission is offered, like most homes sold by owner, or on homes listed by Beycome sellers.

That 3% is an example only. Commissions are not set by law or NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent. Since August 17, 2024, such offers can’t be shown on the MLS.

Step 4: Why get a home inspection?

An inspection shows you what you’re really buying. Before you make a final decision you have to be aware of the home’s real condition. The 1923 Commerce handbook said much the same thing about checking the house and the title before you buy.

A licensed inspector checks the roof, foundation, plumbing, electrical, heating and cooling. You’ll get a written report. Based on it, you can ask the seller to make repairs, give you a credit or lower the price. If your contract has an inspection contingency, you may also be able to walk away.

Consider add-ons when they fit the home: termite, radon, mold or a sewer scope. Planning updates after you move in? Our home renovation checklist for new homeowners and tips for planning a house remodel help you budget early. For bigger jobs, see our guide to house remodeling.

Step 5: What happens at closing?

Closing is where the paperwork comes together. A title company or attorney searches the title to make sure the seller really owns the home and that there are no surprise liens. (Sellers have their own list of documents to bring to closing.) You’ll likely buy a lender’s title policy, and you can choose an owner’s policy too.

Your lender orders an appraisal and finalizes the loan. At least three business days before closing, you must receive the Closing Disclosure, which lists your final loan terms and costs, per the CFPB. Compare it with your Loan Estimate and ask about anything that changed.

On closing day, you sign, wire your funds (call to confirm wiring instructions by phone, since wire fraud is common) and get the keys once the deed is recorded. Our explainer on what a title company does covers this step.

Buying in Florida or Texas? Beycome Title handles closings and title insurance there. Beycome Title also closes in Michigan, Ohio, Illinois and Indiana.

Frequently asked questions

Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage. Licenses are listed at beycome.com/faq/how-to/are-you-a-licensed-broker/.