You need enough to cover your down payment, closing costs, and a small cushion for moving. Down payments can be as low as 0% with a VA loan, 3.5% with FHA, or 3 to 5% with a conventional loan. Closing costs usually run 2 to 4% of the purchase price.

On a $400,000 home that means roughly $12,000 to $30,000 total to get the keys, depending on your loan type. Some buyers also get help from seller concessions or down payment assistance programs.

Most lenders want a credit score of 620 or higher for a conventional loan. FHA loans go as low as 580 with 3.5% down, or 500 with 10% down. VA and USDA loans often approve scores in the 580 to 620 range.

A higher score gets you a lower interest rate, which saves thousands over the life of the loan. Before you shop, pull your free credit report and talk to a lender about small fixes that can bump your score.

Yes. Getting pre-approved should be your first step, before you tour a single home. Pre-approval tells you exactly what you can afford and shows sellers you are a serious buyer. In a competitive market, homes often sell to buyers who can prove they are ready to close.

Pre-approval takes about a day and is free. You share income, debt, and credit details with a lender, and they issue a letter you can attach to any offer.

From offer to keys in hand, most home purchases close in 30 to 45 days. The full process, including shopping and touring, often takes 2 to 4 months.

A cash offer can close in as little as 7 to 14 days. Loans take longer because the lender needs to order an appraisal, review paperwork, and finalize underwriting. Delays are usually tied to financing or inspection repairs.

As of August 2024, buyers and sellers now negotiate agent fees separately. In many cases the seller still agrees to cover the buyer agent fee as part of the offer, but not always. Your buyer agent will walk you through a written agreement before you tour homes, so you know exactly what you pay and what the seller may cover.

This change came from a national settlement that updated how agent fees are disclosed. Ask your agent to explain your options before you sign anything.

Earnest money is a deposit you put down when the seller accepts your offer. It shows you are serious. The money is held by a title company and applied to your down payment at closing.

Most earnest money deposits run 1 to 3% of the purchase price. On a $500,000 home that is $5,000 to $15,000. You get the money back if the deal falls through for approved reasons like a bad inspection or loan denial within the contract timeline.

Yes, always get an inspection. A licensed inspector checks the roof, foundation, plumbing, electrical, HVAC, appliances, and visible structure. You get a written report with photos and notes, usually within 24 hours.

Inspections cost $350 to $600 for most homes. If major issues show up you can ask the seller to fix them, give you a credit, or walk away with your earnest money back. Skipping the inspection to win an offer is risky unless you really know the home.

Buy if you plan to stay at least 3 to 5 years, have steady income, and can afford the down payment plus a savings cushion. Rent if you expect to move soon, are paying down high-interest debt, or need flexibility.

Owning builds equity and locks in your housing cost, but comes with repairs, taxes, and insurance. Renting is simpler but your payment keeps rising each year. Run the numbers on both before you decide.

Buyer closing costs usually run 2 to 4% of the purchase price. On a $450,000 home that is $9,000 to $18,000. The biggest pieces are loan origination fees, title insurance, appraisal, first year of homeowners insurance, and prepaid property taxes.

You get a full list called a Loan Estimate within 3 days of applying for your loan, and a final Closing Disclosure at least 3 days before you sign. Sellers sometimes agree to cover part of these costs as part of your offer.

A buyer agent works for you, the buyer. They find homes, write your offer, negotiate the price, and protect your interests through closing. A listing agent works for the seller and represents the seller's best interest.

Having your own buyer agent means someone is on your side at the table. Without one, the listing agent represents the seller, not you, even if they are friendly and helpful during the tour.

An appraisal is when a licensed professional estimates what a home is worth. Your lender orders one to make sure the home value supports the loan amount. The appraiser looks at recent sales of similar homes in the area and compares features, condition, and location.

If the appraisal comes in lower than your offer price, you may need to pay the difference in cash, renegotiate with the seller, or walk away. Appraisals cost $400 to $600 and usually happen 1 to 2 weeks after your offer is accepted.

Title insurance protects you if someone claims they own part or all of your property after you buy it. The title company researches public records to make sure the seller actually owns the home and has the right to sell it. Title insurance covers legal costs if ownership problems show up later.

Most lenders require you to buy a lender policy, which protects them. An owner policy protects you and costs about $500 to $1,500 depending on the home price. You pay once at closing and the coverage lasts as long as you own the home.

Be very careful. Contingencies protect your earnest money if something goes wrong. The inspection contingency lets you walk away if major problems show up. The financing contingency protects you if your loan falls through. The appraisal contingency helps if the home does not appraise for your offer price.

In a hot market, you might shorten contingency timelines instead of removing them completely. A good buyer agent will help you understand the risk of each waiver before you decide.

Closing is when you sign all the final paperwork and get the keys. You will review and sign the loan documents, transfer ownership papers, and pay your down payment and closing costs. The title company handles most of the details.

Closing usually takes 1 to 2 hours. Bring a cashier's check or arrange a wire transfer for the money you owe. You will get copies of all documents and the keys to your new home. Your buyer agent should be there to answer questions and celebrate with you.

A good buyer agent knows the market, spots problems you might miss, writes strong offers, and negotiates on your behalf. They handle the paperwork, coordinate with lenders and inspectors, and guide you through problems that come up.

Buying a home has legal and financial risks. An experienced agent who represents your interests can save you thousands in mistakes and help you avoid deals that look good but have hidden problems. The best agents are comfortable to work with, competent, authentic, and transparent about the process.