First-Time Homebuyer’s Checklist: What to Know Before You Buy

Buying your first home is one of the biggest financial steps you'll ever take — and it can be both exciting and overwhelming.

Whether you're just starting to save or already attending open houses, this checklist breaks down what to do before, during, and after the homebuying process.

Let’s take it one step at a time.

Step 1: Get Your Finances in Order

Before you even look at homes:

Check your credit score
Pay down high-interest debts
Build an emergency fund (3–6 months of expenses)
Start saving for a down payment
Get pre-approved for a mortgage

Getting your credit in shape and knowing your borrowing limits puts you in a stronger position when it's time to make an offer.

Step 2: Know What You Can Afford

A general rule: Spend no more than 28% of your gross income on housing.

Factor in:

Mortgage principal and interest
Property taxes
Homeowners insurance
HOA fees (if applicable)
Maintenance costs (1–3% of home value per year)

Use online mortgage calculators to estimate monthly payments.

Step 3: Define Your Priorities

List your needs vs. wants:

Needs:

Number of bedrooms
Distance to work/school
Safety of neighborhood

Wants:

Updated kitchen
Big backyard
Home office space

Be clear on what you’re willing to compromise.

Step 4: Choose the Right Mortgage

Common mortgage types:

Conventional (best for good credit)
FHA (lower down payment, easier to qualify)
VA (for military/veterans)
USDA (for rural areas)

Decide between:

Fixed-rate (steady payments)
Adjustable-rate (lower initial rate, but can increase)

Shop lenders for the best rates and terms.

Step 5: Find a Good Real Estate Agent

A great agent will:

Help you find homes within budget
Schedule showings and open houses
Guide negotiations
Handle paperwork

Ask for referrals or search online reviews.

Step 6: Start House Hunting

Be prepared to:

Attend multiple showings
Take detailed notes and photos
Compare listings on apps like Zillow, Redfin, Realtor.com

Remember to focus on fundamentals: location, layout, structure.

Step 7: Make an Offer

When you find the right home:

Work with your agent to draft a strong offer
Include contingencies (financing, inspection, appraisal)
Be ready to negotiate with the seller

If accepted, you’ll sign a purchase agreement and move into escrow.

Step 8: Schedule a Home Inspection

Hire a licensed inspector to check:

Roof, foundation, HVAC, plumbing, electrical, etc.
Signs of damage, mold, or pests

If issues are found, you can renegotiate or walk away.

Step 9: Finalize Your Mortgage

Submit all required documents:

Tax returns
Pay stubs
Bank statements
Loan application

Your lender will order an appraisal to confirm the home’s value.

Once approved, you’ll receive a closing disclosure with final costs.

Step 10: Close the Deal

At closing:

Sign paperwork
Pay your down payment and closing costs
Receive the keys to your new home!

Closing typically happens at a title company or attorney’s office.

After You Move In

Set up utilities and internet
Change locks
Update your address with the USPS and important institutions
Budget for ongoing maintenance and property taxes

Final Thoughts

Buying your first home is a big move — but with the right prep, it doesn’t have to be intimidating.

Use this checklist to stay organized and informed throughout the process.

And remember: Your first home doesn’t have to be your forever home. Focus on making a smart financial move that fits your life today.

Welcome to homeownership!