First-Time Homebuyer Checklist: What to Know Before You Buy
Overview
Buying your first home is an exciting milestone, but it can also feel overwhelming. From understanding mortgage terms to navigating inspections, there’s a lot to manage. The key? Be prepared.
Whether you're just starting to save or you’ve already spotted your dream house, this checklist will guide you through the essentials of buying your first home — step by step.
1. Check Your Credit Score
Your credit score is one of the first things lenders evaluate. A higher score often means better interest rates.
What to do:
Request a free copy of your credit report
Dispute any errors.
Avoid opening new credit lines or making big purchases during the buying process.
2. Set a Realistic Budget
Before browsing listings, determine how much home you can afford. Remember, your mortgage isn’t the only expense — factor in taxes, insurance, utilities, and maintenance.
What to do:
Use a mortgage calculator to estimate your monthly payment.
Follow the 28/36 rule: Your mortgage should be no more than 28% of your gross monthly income, and total debts no more than 36%.
Bonus Tip: Don’t max out your budget. Leave breathing room for emergencies and future expenses.
3. Save for the Down Payment and Closing Costs
Traditionally, a 20% down payment avoids private mortgage insurance (PMI), but many loan programs allow much less.
What to do:
FHA: as low as 3.5% down.
VA & USDA: 0% down (if eligible).
Conventional: 3–5% down (with PMI).
Don’t forget: Closing costs can range from 2–5% of the home price — be sure to budget for them, too.
4. Get Pre-Approved for a Mortgage
Pre-approval shows sellers you're serious and helps you shop within your price range.
What to do:
Gather documents: pay stubs, W-2s, tax returns, bank statements.
Compare rates from multiple lenders.
Ask about loan types, fees, and interest rates.
Pro Tip: A pre-approval is stronger than a pre-qualification — it’s based on verified financial information.
5. Find the Right Real Estate Agent
A good buyer’s agent is your advocate, guide, and negotiator — all at no cost to you (they’re paid by the seller).
What to do:
Ask for referrals.
Interview at least 2–3 agents.
Look for someone with local knowledge and a track record of helping first-time buyers.
6. Research Neighborhoods
Location matters as much as the house itself. Consider your daily routine, commute, and future resale value.
What to do:
Drive around neighborhoods at different times of day.
Check school ratings, crime stats, and future development plans.
Prioritize needs (like safety and walkability) over wants.
7. Tour homes & Make an offer
Once you find a home you love, move quickly — especially in a competitive market.
What to do:
Be objective during tours: Check plumbing, roof, layout, and storage.
Discuss offer strategy with your agent.
Prepare for negotiation: Price, repairs, closing timeline, and more.
8. Schedule a home inspection
This step protects you from unexpected repairs and costs.
What to do:
Hire a licensed, independent home inspector.
Attend the inspection if possible.
Review the report and request repairs or credits as needed.
9. Secure title insurance & Finalize details
A title search ensures the property is free from legal issues like liens or ownership disputes.
What to do:
Work with a reputable title company.
Purchase owner’s title insurance for added protection.
Finalize your loan and lock in your rate.
The final step is the closing — signing paperwork, paying closing costs, and getting your keys.
10. Close & move-in!
What to do:
Review the Closing Disclosure 3 days before settlement.
Bring ID, proof of insurance, and a certified check (if needed).
Take a final walkthrough before closing to confirm home condition.
The final step is the closing — signing paperwork, paying closing costs, and getting your keys.
Final thoughts
Becoming a homeowner for the first time takes planning, patience, and a bit of paperwork — but the reward is worth it. Use this checklist to stay organized, informed, and confident throughout your journey.
Ready to take the first step? Start by checking your credit and connecting with a real estate professional you trust. Your future home is closer than you think.
