Set aside 1% to 3% of the home's value annually for repairs. Phase 2: Mortgage Pre-Approval

Before looking at listings, you must solidify your financial foundation to understand your true "borrowing power".

Check your credit score and review your report for errors at AnnualCreditReport.com several months in advance. A higher score secures better loan terms.

Use the 28/36 rule —housing costs should ideally not exceed 28% of your gross monthly income. Save for Upfront Costs: Down Payment: Typically 3% to 20% of the purchase price.

A is more rigorous than a pre-qualification and is often required by sellers in 2026 to prove you are a serious buyer. How to Buy a House in 2026: Complete Guide - Opendoor

Plan for an additional 2% to 5% of the loan amount.