How to Buy Your First Home in 2026: A Step-by-Step Guide

Before you start browsing listings, take a hard look at your finances. Lenders will scrutinize three key numbers: your credit score, your debt-to-income ratio (DTI), and your savings.

• Credit Score: A score of 620 is the minimum for most conventional loans, but 740+ will get you the best rates. Check your score for free at AnnualCreditReport.com.
• DTI Ratio: Most lenders want your total monthly debts (including the new mortgage) to be no more than 43% of your gross monthly income.
• Savings: Plan for a down payment (3–20% of the purchase price) plus 2–5% in closing costs. Many first-time buyers forget about closing costs.

A mortgage pre-approval is a lender's written commitment to loan you up to a specific amount, based on a review of your income, assets, and credit. It's different from pre-qualification, which is just an estimate.

Pre-approval gives you three major advantages:

1. You know exactly how much house you can afford
2. Sellers take your offers more seriously
3. You can close faster once you find a home

The Turn Times digital application takes about 10 minutes and gives you a same-day decision in most cases.

With your pre-approval in hand, you're ready to shop. Work with a buyer's agent — their commission is typically paid by the seller, so their services are free to you.

When evaluating homes, think beyond the listing price. Consider:

• Property taxes: These vary significantly by location and can add hundreds per month to your payment.
• HOA fees: Some communities charge $200–$800/month on top of your mortgage.
• Condition: A home inspection ($300–$500) can reveal costly issues before you commit.
• School districts: Even if you don't have kids, good schools protect your resale value.

In 2026's market, buyers have more negotiating power than they've had in years. Inventory is rising in most markets, and bidding wars are less common.

Your offer should include:

• Purchase price
• Earnest money deposit (1–3% of purchase price)
• Contingencies (financing, inspection, appraisal)
• Desired closing date
• Any items you want included (appliances, fixtures)

Once your offer is accepted, you'll enter the closing process — typically 30–45 days. Here's what happens:

1. Loan processing: Your lender verifies your documents and orders an appraisal.
2. Underwriting: An underwriter reviews your complete file and issues a conditional approval.
3. Clear to close: Once all conditions are met, you'll receive a Closing Disclosure with final numbers.
4. Final walkthrough: Inspect the property one last time before closing day.
5. Closing day: Sign the paperwork, pay closing costs, and get your keys!

Turn Times averages a 21-day close — significantly faster than the industry average of 49 days.