First-Time Home Buyer Checklist
1. Financial Prep
- ✅ Check your credit score
- ✅ Create a budget (including down payment, closing costs, moving, etc.)
- ✅ Save for a down payment (typically 3%–20%)
- ✅ Reduce debt if possible (helps with mortgage approval)
- ✅ Get pre-approved for a mortgage (not just pre-qualified)
- ✅ Explore first-time home buyer programs and grants
2. Determine Your Home Needs
- ✅ Decide on a preferred location/neighborhood
- ✅ List must-haves vs. nice-to-haves (number of bedrooms, yard, commute, etc.)
- ✅ Consider future needs (kids, working from home, etc.)
3. Hire the Right Help
- ✅ Find a reliable real estate agent who knows your market
- ✅ Choose a mortgage lender with good rates and service
4. Start House Hunting
- ✅ Go to open houses or schedule private showings
- ✅ Compare multiple properties
- ✅ Keep notes or a spreadsheet of homes you’ve viewed
5. Make an Offer
- ✅ Work with your agent to craft a competitive offer
- ✅ Be prepared to negotiate on price, repairs, or closing costs
- ✅ Submit earnest money deposit (shows you’re serious)
6. Get a Home Inspection
- ✅ Hire a certified inspector
- ✅ Attend the inspection if possible
- ✅ Review the report carefully and negotiate repairs if needed
7. Appraisal & Loan Finalization
- ✅ Lender orders a home appraisal
- ✅ Ensure the home appraises at or above purchase price
- ✅ Finalize your mortgage details and lock in your rate
8. Closing Process
- ✅ Review closing disclosure document
- ✅ Do a final walk-through of the home
- ✅ Bring ID, payment for closing costs, and any required documents to closing
- ✅ Sign the paperwork and get the keys!
9. Move In
- ✅ Set up utilities, internet, and other services
- ✅ Change address (USPS, banks, subscriptions)
- ✅ Celebrate 🎉 (you did it!)
What Not to Do as a First-Time Homebuyer
1. Don’t skip mortgage pre-approval
- Pre-approval gives you a clear budget and shows sellers you’re serious.
- Pre-qualification is not the same — it’s just a rough estimate.
2. Don’t make major financial changes
- Avoid big purchases (cars, furniture, etc.).
- Don’t open new credit cards or take on new debt during the process.
- Don’t switch jobs without checking with your lender.
3. Don’t max out your budget
- Buy below your max approval — you’ll need money for maintenance, taxes, insurance, etc.
- Leave room for lifestyle and emergencies.
4. Don’t waive the home inspection
- You could be stuck with costly repairs later.
- Even in a hot market, try to at least do an informational inspection.
5. Don’t ignore additional costs
- Budget for:
- Closing costs (2–5% of home price)
- Property taxes
- Homeowners insurance
- HOA fees (if applicable)
- Utilities, maintenance, and repairs
6. Don’t fall in love too fast
- Be ready to walk away if the home has serious issues or is overpriced.
- Emotional decisions can lead to regrets later.
7. Don’t underestimate maintenance
- Owning a home means you’re now the landlord.
- Set aside a home maintenance fund (~1–3% of home value per year).
8. Don’t rely solely on online listings
- Photos can be deceiving.
- Touring homes in person gives you a much better sense of the layout and condition.
9. Don’t skip comparing mortgage offers
- Different lenders offer different rates, terms, and closing costs.
- A slightly lower interest rate can save you thousands over the life of the loan.
10. Don’t assume your loan is final until closing
- Lenders re-check your credit and employment right before closing.
- Sudden changes can delay or kill your loan.
