How to Prepare to Buy a House in 6 Months

Buying a new home is an exciting venture whether you are a first-time homebuyer or an experienced property owner. Besides being one of the largest financial transactions you may make in your lifetime, getting a mortgage involves many steps. You may be asking yourself: How do I even start? In this article, we will discuss how to prepare to buy a house. From reviewing and improving your credit, to the cost of homeownership, and more—we will help you every step of the way to your new home.

Let us take this a step at a time.

1. Check your credit score

The first step to buying a house in 6 months is to check your credit score. The difference between an excellent low-interest rate and a much higher one often lies in your credit score. By checking all three credit bureaus early, there is time to start making whatever changes are needed. And the good news is that you can get a free credit report each year.

2. Boost your credit score with these credit dos and don’ts.

Let us begin with some basic information about credit scores. They can range from 300 to 850. For most mortgages, you will need a score of at least 620. And, for some of the better rates, a score of 700 or more. Take a look at this chart and see where your score is currently:

With your credit report in hand, see where your score falls. If it is below 620, you have some work to do. If you need to increase your score, first make a list of any errors. Next, contact each credit bureau and request they fix the errors. Here are their addresses for easy reference. We have also included a link where you can dispute online.

TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19016-2000
Online dispute

Equifax Information Services, LLC
P.O. Box 740256
Atlanta, GA30374-0256
Online dispute

Experian
P.O. Box 4500
Allen, TX 75013
Online dispute

Besides asking the bureaus to fix any errors, there are several significant things you can do:

Credit do's

• Pay on time. Your payment history plays a large part in determining your score. Set up automatic payments a week before they are due to ensure you are always on time.
• Reduce debts. It is best to use 1/3 or less of your available credit. So, pay anything down that you can.

Credit don'ts

• Don't close accounts. Even if you pay your credit cards off, keep them open. Closing accounts can cause your credit score to plummet.
• Don't open new accounts. Hold off getting any new credit or financing vehicles. New credit inquiries can drop your score. Plus, more debt means less money for a house payment.
• Don't finance new vehicles. More loans fall through because the borrower decides to buy a beautiful new truck or car. Now they can not afford a home.

3. What are your must-haves? Your would-be-nice-to haves? Write them down.

Your next step if you want to buy a house quickly is to prioritize your wish list. Just make a list of the home features that are must-haves (essential things that are non-negotiable), nice-to-haves (things you would like to have, but could live without), and involve the entire family. Once you create your list, put them in order of importance.

Take your list to your real estate agent and it will help you work together to determine what is a reasonable ask within your budget and your desired location.

Think about:

• Bedrooms: How many bedrooms do you need? How many do you want?
• Bathrooms: How many bathrooms do you need? How many do you want?
• Floor plan: Are you looking for a specific type of floor plan?

For example, make a note if you have your heart set on a modern or open plan. Or if you have teenagers, having bedrooms on the opposite ends of the house might be a necessity.

• Style: List your favorite home designs. Consider Craftsman, Victorian, Modern, Ranch, and Spanish.
• Kitchen: Many families consider the kitchen the most important room of the house. So, make sure you think about all your needs. These may include a stand-alone kitchen island, pantry, or granite countertops.
• Stories: Decide on how many levels you would like the home to have. It will make house hunting easier. For example, if you are hoping to retire soon, a ranch-style may be better than a three-story Victorian.
• Garage: This is something that often gets overlooked until you move in. If you love older homes, consider the fact that most of them have small garages or no garage at all. That means you may have to park your car in the driveway depending on the circumstances. It might not matter to you, but it is good to consider.
• Driveway: Some parts of the country get a lot of snow. If that is the case where you live, you might want to avoid a steep driveway. 
• Location: Consider how close you are to work, schools, and shopping. And do not forget to consider the distance in relation to your place of worship, friends, and family. 
• Neighborhood: The specific area you select will affect your enjoyment of your new home. For example, growing families will want to be around other families with children. Living in a dog-friendly neighborhood is also a important for animal lovers.
• Walkability: Do you want to live in the country with plenty of space? Or do you prefer a more metro area with high walkability, including local dining and shops?
• Amenities: Is a pool important? Or would you prefer a planned community that is amenity-rich?
• Yard: A yard may be on the top of your list or the bottom. Though keep in mind that if having a yard is not essential right now, it may be later.

You can also check out our beginner's checklist for housing needs for an even more expansive list.

4. Know the different types of mortgages

There are three main categories of mortgages: conforming, government-insured, and jumbo. Here are the basics:

Conforming loans

Conforming loans conform to specific guidelines. These guidelines include:

• The maximum loan amount for 2026 is $832,750 for a single-unit property and $1,249,125 in high-cost areas.
• Typically the minimum credit score is 620.
• The minimum down payment is usually between 3 to 5%.
• You can buy a home, rental, or investment property with a conforming loan.

Government loans

Government loans include Veterans Affairs (VA) loans, Federal Housing Administration (FHA) loans, and United States Department of Agriculture (USDA) loans. Here are the basics:

• VA loans offer as little as 0% down, have excellent rates, and lenders may require a minimum credit score of only 620.
• FHA loans require 3.5% down and borrowers with less than stellar credit have an easier time getting an FHA loan. Keep in mind, not all lenders offer FHA loans.
• USDA loans are for rural properties. Keep in mind, not all lenders offer USDA loans.

Jumbo loans

Jumbo loans are for properties that exceed the conforming lending limits of $832,750 for a single-unit property and $1,249,125 in high-cost areas. Here are the basics:

• There are various requirements for jumbo loans, including typically a credit score of over 700.

The above loans are available in different terms, including:

• Fixed-rate loans of 10-, 15-, 20-, and 30-years
• Adjustable-rate loans where the payment is fixed for a certain number of years and then goes up or down after the initial period

5. Understand the cost of homeownership

There are costs to owning a home. And if you are a first-time homebuyer, it is good to know what they are. 

When you buy your house, you will have some one-time expenses. These include:

• Down payment
• Closing costs
• Earnest money (small down payment with your offer)
• Appraisal
• Inspection fees

It is essential to start saving money right away. Once you have your home, you will have ongoing costs. These include:

• Maintenance and repairs (HVAC, roof repair, tree trimming, and pest control)
• Homeowners insurance
• Property taxes
• HOA fees or condo/co-op fees

When you are renting, your landlord pays for the above. As a homeowner, it is good to have some money in savings for those unplanned emergencies.

6. Start saving money

Starting to save immediately is some of the best advice you can get. Depending on the loan type, you may consider putting 20% down. Having a 20% down payment means you can avoid private mortgage insurance (PMI).

If you do not have 20% down, there are still mortgages you can get with only 3-5% down.

The other important thing to do is save your money. Do not buy anything before you close on your home. Avoid car shopping and do not apply for any new credit. Do not add to any existing balances leading up to a home purchase. Your goal is to reduce debt and keep your credit report clean.

7. Get preapproved

As soon as you can, get preapproved. It is helpful for you to know what you might be able to qualify for. Plus, many sellers require preapproval before they accept an offer.

It is important to know that a preapproval is not a guarantee that you will be approved for a mortgage. It is an initial review of your finances that shows what you should be able to afford. Once you find a home and put in an offer, you will receive a more solid approval.

Learn why getting pre-approved matters.

8. Get your documents together

Having all of your documents together and organized will help move your loan along much faster. Here are the main ones you need:

• Paystubs: Most recent 30 days
• Bank statements: Most recent 60 days
• W2: If you are employed, you will need 1-2 years of your W2s
• Taxes: If you are self-employed, you will need 1-2 years of your taxes
• Profit and loss: Only if you are self-employed
• ID: Current driver's license or eligible Government issued identification
• Certificate of Eligibility (COE): Only if you are getting a VA loan

As you move further along in the mortgage process, you will most likely need to submit additional documents. Your willingness to provide whatever the lender needs quickly will make the process easier.

9. Find a great real estate agent

While it might seem helpful to hire a mutual or family friend to be your realtor, it may be more worth your while finding someone familiar with the area you are researching to live. These local experts understand the comparable values, what other homes of similar value have sold for, the schools, and much more.  

A great real estate agent can be worth thousands of dollars to you whether you are buying or selling. Realtors do this for a living, and you should consider your interview with prospective realtors just like you are interviewing them for a job. 

10. Find your home and make an offer

Here is where the real estate agent can show more of their value. In addition to helping in your search, the right agent can guide you along. They can tell you how to make an offer, how much to offer, and where there might be negotiation room.

Let us bring you home!

Buying a home is a journey. Whether this is your first purchase or if you have made several, it is always great to understand all of the steps and options to make your journey as smooth as possible. We hope you have found this information about how to prepare to buy a house helpful.

 

 

 

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