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First-Time Homebuyer Checklist

Buying your first home is exciting and overwhelming. This checklist breaks it down into manageable phases so nothing falls through the cracks.

7

Phases

40+

Action Items

3-6

Month Process

PDF

Download Available

Get the PDF Checklist

Download a printable version to track your progress. Keep it on your fridge or share with your partner.

Phase 1: Financial Preparation

3-12 months before buying

  • Check your credit score

    Aim for 620+ for conventional loans, 580+ for FHA. Get free reports from annualcreditreport.com

  • Pay down existing debt

    Lower your debt-to-income ratio below 43%. Pay off credit cards and avoid new debt.

  • Save for down payment

    Conventional: 3-20%, FHA: 3.5%, VA/USDA: 0%. Don't forget closing costs (2-5% of loan).

  • Build emergency fund

    Keep 3-6 months of expenses separate from your down payment.

  • Avoid major purchases

    No new cars, furniture, or credit cards until after closing.

  • Gather income documentation

    W-2s, tax returns, pay stubs, bank statements for the past 2 years.

Phase 2: Getting Pre-Approved

1-2 months before searching

  • Research loan types

    Conventional, FHA, VA, USDA. Each has different requirements and benefits.

  • Shop multiple lenders

    Compare rates from at least 3 lenders. Credit checks within 14-45 days count as one inquiry.

  • Get pre-approval letter

    Stronger than pre-qualification. Shows sellers you're a serious, qualified buyer.

  • Understand your budget

    Just because you're approved for X doesn't mean you should spend X. Factor in taxes, insurance, maintenance.

  • Lock in your rate

    Rate locks typically last 30-60 days. Ask about float-down options.

Phase 3: House Hunting

1-3 months

  • Find a buyer's agent

    Helps you find what fits your needs and negotiates on your behalf.

  • Define your must-haves vs nice-to-haves

    Bedrooms, location, school district, commute time, yard size.

  • Research neighborhoods

    Visit at different times of day. Check crime stats, school ratings, future development plans.

  • Attend open houses

    Get a feel for what your budget actually buys in different areas.

  • Consider resale value

    Even if it's your forever home, life changes. Avoid the most expensive house on the block.

  • Check for smart home readiness

    Network wiring, outlet placement, thermostat compatibility. Retrofitting is expensive.

Phase 4: Making an Offer

1-2 weeks

  • Research comparable sales

    Your agent will provide comps. Know what similar homes sold for recently.

  • Determine offer price

    Consider market conditions. Hot market = at or above asking. Slow market = room to negotiate.

  • Include contingencies

    Inspection, financing, appraisal. These protect you but may weaken offer in competitive markets.

  • Submit earnest money

    Typically 1-3% of purchase price. Shows good faith. Goes toward down payment at closing.

  • Negotiate repairs or credits

    After inspection, request fixes or price reduction for major issues.

Phase 5: Under Contract

30-60 days

  • Schedule home inspection

    Hire your own inspector. Attend the inspection and ask questions.

  • Get specialized inspections if needed

    Termite, radon, sewer scope, roof, foundation depending on home age and location.

  • Order appraisal

    Lender requires this. If appraisal comes in low, you can renegotiate or make up the difference.

  • Secure homeowners insurance

    Required by lender. Shop around. Bundle with auto for discounts.

  • Finalize your loan

    Provide any additional documents lender requests. Don't change jobs or make big purchases.

  • Review title report

    Ensures seller legally owns the property with no liens or claims.

  • Schedule final walkthrough

    24-48 hours before closing. Verify repairs made and home is in agreed condition.

Phase 6: Closing Day

The big day

  • Review Closing Disclosure

    Receive at least 3 days before closing. Compare to Loan Estimate for surprises.

  • Wire funds or get cashier's check

    Verify wire instructions by phone. Scammers target real estate transactions.

  • Bring required documents

    Photo ID, proof of insurance, cashier's check if not wiring.

  • Sign closing documents

    Take your time. Ask questions about anything you don't understand.

  • Receive keys

    Congratulations, you're a homeowner!

Phase 7: After Closing

First 30 days

  • Change locks

    You don't know who has copies of the old keys.

  • Set up utilities

    Electric, gas, water, internet, trash. Some may already be in your name from closing.

  • Update your address

    USPS, driver's license, voter registration, banks, subscriptions.

  • File for homestead exemption

    Reduces property taxes on your primary residence. Deadlines vary by state.

  • Locate shutoffs

    Know where water main, gas shutoff, and electrical panel are located.

  • Create a maintenance schedule

    HVAC filters, gutter cleaning, water heater flush. Maintenance prevents expensive repairs.

Closing Cost Calculator

Closing costs typically run 2-5% of your purchase price. Use this calculator to estimate what you'll need at closing.

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Frequently Asked Questions

How long does the home buying process typically take?

From the time you start seriously looking to closing day, expect 3-6 months. The financial preparation phase can add another 3-12 months if you need to improve your credit or save for a down payment. Once you're under contract, closing typically takes 30-60 days depending on loan type and any issues that arise during inspection or appraisal.

Can I skip any of these steps?

While some steps can be compressed or modified based on your situation, we strongly recommend against skipping key protections like the home inspection or appraisal contingency. Cash buyers may skip some financing-related steps, and VA/USDA loan recipients may skip certain down payment requirements. However, skipping financial preparation often leads to loan denials or being house-poor after closing.

What credit score do I need to buy a home?

Minimum credit score requirements vary by loan type: FHA loans require 580+ for 3.5% down (or 500-579 with 10% down), conventional loans typically require 620+, VA loans have no official minimum but lenders usually want 620+, and USDA loans generally require 640+. Higher scores get better interest rates. A 40-point increase could save you tens of thousands over the life of your loan.

How much should I save for a down payment?

Down payment requirements range from 0% (VA and USDA loans) to 3% (some conventional programs) to 3.5% (FHA) to the traditional 20%. However, putting less than 20% down usually means paying private mortgage insurance (PMI), which adds $50-200+ per month. Don't forget closing costs (2-5% of loan amount) and moving expenses. We recommend having at least 3-6 months of expenses saved beyond your down payment and closing costs.

Do I need a real estate agent?

While not legally required, working with a buyer's agent is highly recommended for first-time buyers. A good agent helps you find homes that meet your criteria, provides market knowledge and comparable sales data, negotiates on your behalf, guides you through paperwork, and coordinates with lenders, inspectors, and title companies. In most cases, the seller pays the buyer's agent commission, so it costs you nothing to have professional representation.

Need Help With Your Home Search?

Work with a tech-savvy Realtor who understands smart home infrastructure, network readiness, and what makes a home future-proof.