Buying a house is one of the biggest financial milestones in your life—especially if it’s your first one! But where do you start when the whole process feels overwhelming? What do you actually need to buy a house? How much do you really need for a down payment? And is your credit score high enough?
Most of the anxiety traces back to one number: the down payment. The myth is that you have to save 20% before you can buy. In reality, the typical down payment for a first-time buyer in 2025 was just 10%, and many loan programs go far lower.[1]
The truth is that you don't need a perfect financial profile to buy a home, but you do need a plan. Each item below comes with what it actually takes in 2026, where buyers most often get tripped up, and what working loan officers at Best Interest Financial tell their own clients.
Buying a house checklist
Knowing what you need to buy a house is one thing. Tracking it all while you save, shop, and compare lenders is another. Use this checklist to work through the nine essentials at your own pace, from documenting your income to getting pre-approved. Check off each item as you go, and you'll have a clear picture of where you stand and what's left before you're ready to make an offer.
1. Steady source of income
This is the foundation of your mortgage application. Lenders look beyond just how much money you make; they will also seek consistency in your earnings.
Typically, you’ll be required to provide these documents when you apply for a mortgage:
- Pay stubs
- W-2 forms
- Employer verification letter
- Tax returns
- Bank statements
If you have other sources of income, such as rental income, retirement income (401(k) or IRA), or dividend income, you can use them to supplement your application. Self-employed and 1099 buyers can qualify too, but expect a different income calculation and more documentation, including two years of returns and a year-to-date profit and loss statement.
2. Good credit score
A higher credit score signals to lenders that you are a low-risk borrower. This doesn’t just mean you’re more likely to get approved; it often means you can qualify for a lower interest rate. Over the typical 30-year life of a loan, even a slightly lower interest rate can save you tens of thousands of dollars.
So, what credit score do you need to buy a house? While 620 is a good benchmark for conventional loans, different programs have different requirements. For example, government-backed loans, such as FHA or VA loans, often have more flexible requirements and allow for lower credit scores in the 500s.
In other words, lenders are reading your whole credit story, not just the number at the top. A short but spotless history can still qualify; a high score propped up by brand-new accounts is weaker than it looks.
3. Down payment
One of the most common myths is that you must save up 20% of the home price before you buy. In reality, the typical down payment for first-time buyers was just 10%.[2] The amount you need to save for your down payment depends entirely on your budget, the loan type you choose, and what programs and loans you can qualify for.
There are also many initiatives that can help you buy with less cash upfront, such as HUD’s Good Neighbor Next Door program (designed for law enforcement officers, teachers, firefighters, and EMTs). With this program, the minimum down payment is listed as $100, instead of the standard 3.5%.
If you’re looking for down payment assistance, you can check the list of HUD’s resources by state to see what local down payment assistance programs might be available in your area. You can also check your local state and government websites for down payment assistance programs in your area.
A larger down payment can still earn you better loan terms, a lower monthly payment, and the ability to skip private mortgage insurance (PMI). But waiting years to hit 20% has a cost of its own.
4. Funds for closing costs
Many first-time homebuyers focus on the down payment and forget that closing day also comes with significant expenses. Closing costs can include many different fees: appraisal and attorney fees, title searches, and taxes. Typically, they run between 2% and 5% of the loan amount, which adds up to an additional $6,000 to $15,000 in cash for a $300,000 home.[3]
If you need assistance covering closing costs, you can negotiate with the seller for concessions. Or in some cases you can use lender credits or roll some costs into the loan balance, which will make your monthly payment higher but won’t require as much cash upfront. Another option is to look into newly constructed homes, where builders often use financial incentives to seal the deal.
As Robert Dietz, chief economist at the National Association of Home Builders said regarding the 2026 home market, “Incentives are very elevated right now, and that’s good news for buyers . . . Builders are using their financial resources to lower buyers’ mortgage rates for the first two or three years, helping to ease monthly payment pressures. Other incentives include amenity upgrades and closing cost assistance, though there are limits to how much builders can offer. Still, it’s one of the industry’s main ways of responding to ongoing affordability challenges.”
5. Emergency fund
According to the Joint Center for Housing Studies at Harvard University, many homeowners struggle to pay for home repairs.[4] A healthy emergency fund can make home repairs much less disruptive to your finances.
An emergency fund also helps you keep up with your mortgage when life throws a curveball. Lenders like to see additional savings beyond your down payment and closing costs, often called “reserves,” and on a high-debt file those reserves can be the difference between an approval and a decline.
PITI is your principal, interest, taxes, and insurance, in other words your full monthly housing payment. Saving three to six months of living expenses gives you both a stronger application and real peace of mind once you own the home.
6. Familiarity with your real estate rights
Entering the housing market can feel intimidating, but buyers have significant protections under the law. Before you shop, make sure you understand the basics of the Fair Housing Act and how to respond if your rights are violated.[5]
Lenders also have to follow strict rules and regulations that require transparency about the services and costs in your loan. Knowing these basics helps you avoid being pressured into a bad deal or paying fees that were not properly disclosed.[6]
7. Home that appraises for the right price and passes inspection
You might fall in love with the house, but not every single property can be financed by a mortgage. Before a bank finalizes your loan, they will order an appraisal to determine the home's fair market value. If the house appraises for less than the offer price, you might have to renegotiate with the seller or cover the difference in cash.
Similarly, a home inspection can protect a buyer and their investment. A licensed home inspector will go through the property to check the foundation, roof, and all major systems. If they find any major issues, you can ask the seller to lower the price, make repairs, or even walk away from the deal.
If you want to avoid these maintenance pitfalls entirely, you might consider new construction. As Dietz points out, new builds often offer “lower maintenance costs and newer systems” that can save you from major issues found in new properties.
8. Experienced real estate agent
A good real estate agent is a must for first-time buyers. In fact, according to the National Association of Realtors Profile of Home Buyers and Sellers, 88% of all buyers over the past year purchased a home with professional help. Real estate agents are expert negotiators who know the local market and represent your interests, not the seller’s.
They handle many responsibilities, from finding properties that match your budget to putting together a winning offer and guiding you every step of the way. The NAR study also cited that three out of four first-time buyers credit their agent with helping them understand the process.
9. Reliable mortgage lender
Your lender is your financial partner in the process. They are the ones who will examine your application, explain your loan options, and secure the funding for your house. Finding a lender who communicates openly and answers your questions matters as much as finding the lowest rate.
Finding a lender who openly communicates and is willing to answer your questions is as important as finding the lowest rate. So, take some time and compare a few different lenders. Pay attention to the loan types they offer, customer service, and perks (such as down payment assistance). Obtain a pre-approval letter from a couple of your top options to test their service in action and compare the terms and costs.
Next steps: Meet with a loan officer to see if you’re ready to buy a house
Meeting with a mortgage lender is a perfect first step to take towards buying your dream home. A lender can look at your unique situation, such as your income, debts, and savings, and tell you exactly where you stand.
Whether you are ready to apply for a pre-approval today or just want to map out a two-year savings plan, meeting with a Best Interest Financial advisor can give you clarity and an idea of what comes next. Get a custom quote from Best Interest Financial in 60 seconds today.
🛡️ Why you should trust us
Best Interest Financial (NMLS #2469842) is a licensed mortgage lender whose team has closed thousands of purchase mortgages, refinances, and home equity loans. For this guide, we paired that day-to-day lending experience with current federal, agency, and trade-association sourcing so every point reflects what borrowers actually run into.
Author
Mariia Kislitsyna wrote this article, structuring the nine essentials and verifying current down payment, credit, and closing-cost figures against primary sources.
Editor
Cara Haynes edited this article for clarity, accuracy, and consistency with Best Interest Financial’s editorial standards.
Expert reviewer
This article was reviewed by Steve Nicastro, content lead at Best Interest Financial and managing editor at Clever Real Estate. Steve was a licensed real estate agent in Charleston, SC, from 2019 to 2022, where he closed roughly $6 million in transactions, and has personally bought and sold more than 30 homes as an agent, investor, and owner. Before joining Clever, Steve spent over six years as a personal finance writer at NerdWallet covering mortgages, credit, and homebuying.
Who we interviewed for this article
We spoke with working mortgage professionals to ground each step in real lending practice:
- Bernie Frascarelli, Executive Loan Officer at Best Interest Financial (NMLS #938329), on how credit depth, reserves, and the full file shape an approval.
- Chris Kuclo, Senior Director of Agent Relations and Sales at Best Interest Financial (NMLS #926690), on the reality of down payments and what makes a lender worth choosing.
- Matthew Oetting, Executive Loan Officer at Best Interest Financial (NMLS #1639468), on what lender credits actually do to your closing costs.
Editorial process and disclosure
Best Interest Financial articles are written and fact-checked against primary sources and proprietary BIF lending experience, then reviewed by a named expert before publication. We update articles on a rolling basis as rates, regulations, and lending guidelines change.
Best Interest Financial (NMLS #2469842) originates mortgages and home equity products and is a subsidiary of Clever Real Estate. We disclose this because the loan officers quoted above work for BIF, and because BIF benefits if you choose to apply with us. We hold our editorial team to the same standards we would apply if the recommendation pointed away from our own product.
FAQ about buying a house
Can I buy a house if I make $3,000 per month?
Yes, it is possible to buy a house if you make $3,000 per month, but it depends on where you live, how much debt you have, how much you have saved for your house, and your other expenses. Lenders usually want your housing payment to be under 30% of your monthly gross income. On a $3,000 income, that means a mortgage payment of approximately $850-$900.
If you need assistance buying a home, there are many programs available nationwide. For example, there are several programs designed to help public housing residents transition to homeownership
Is $10,000 enough to put down on a house?
In many cases, $10,000 is enough to put down on a house. For example, if you use an FHA loan, which requires a 3.5% down payment, $10,000 would be enough for a $285,000 home—although you would also need money to cover closing costs. If you need help with your down payment, you could look for down payment assistance programs in your state
How much house can I afford if I make $70,000 per year?
If you make $70,000 per year, you can likely afford a $220,000 home. But because your down payment, interest rate, and debt will have a big effect on how much you can afford, that number could vary widely based on your personal financial situation.
What are the 3 C’s in a mortgage?
The three C’s in mortgage are credit, capacity, and collateral. These are three factors lenders use to evaluate a borrower’s creditworthiness.
Disclaimer: The information provided in this article is for informational and educational purposes only. It is not intended as legal, financial, investment, or tax advice, and should not be relied upon as such. Mortgage rates, terms, products, and eligibility requirements are subject to change without notice and vary based on individual circumstances, credit profile, property type, loan amount, and other factors. All loans are subject to credit approval. This content does not constitute a commitment to lend or an offer of specific loan terms. For personalized mortgage advice and to discuss loan products that may be suitable for your situation, please contact one of our licensed loan officers.