First-Time Home Buying — Complete Checklist

A score of 740+ gets you the best mortgage rates. Check your free credit report at annualcreditreport.com. Dispute any errors. Avoid opening new credit cards or making large purchases in the months before applying for a mortgage.

The general rule is your monthly housing cost (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income. Use online mortgage calculators to estimate payments. Factor in property taxes, homeowner's insurance, HOA fees, and maintenance costs.

Conventional loans require 3-20% down. FHA loans require 3.5%. VA loans require 0%. Closing costs typically run 2-5% of the purchase price. You'll also need cash reserves for moving, repairs, and emergencies after purchase.

Many states and cities offer down payment assistance, grants, or favorable loan terms for first-time buyers. FHA, VA, and USDA loans have lower requirements. Check your state's housing finance agency website.

Get quotes from at least 3 lenders: a big bank, a credit union, and an online lender. Rate differences of even 0.25% save thousands over the life of the loan. All applications within a 45-day window count as one credit inquiry.

Lenders will need: 2 years of W-2s/tax returns, 2 months of pay stubs, 2 months of bank/investment statements, government-issued ID. Self-employed buyers need 2 years of business tax returns and a profit-and-loss statement.

Pre-approval is different from pre-qualification. Pre-approval involves a hard credit check and document review — it carries much more weight with sellers. Letters are typically valid for 60-90 days.

A buyer's agent represents your interests and is typically free to you (paid by the seller's commission). Interview 2-3 agents. Ask about their experience with first-time buyers, knowledge of your target neighborhoods, and availability.

Separate non-negotiables (location, number of bedrooms, school district) from nice-to-haves (updated kitchen, garage, yard). Be realistic — your first home doesn't need to be your forever home.

Visit neighborhoods at different times of day and week. Check crime stats, school ratings, commute times, walkability scores, and planned development. Talk to potential neighbors if you can. Check flood zone maps at FEMA.gov.

Take photos and notes at every property — they blend together quickly. Check water pressure, open closets, look at the roof and foundation. Visit at least 5-10 homes before making an offer so you understand the market.

Your agent will prepare the offer. Key terms: price, earnest money deposit (typically 1-3% of price), contingencies (inspection, appraisal, financing), desired closing date, and any requests for seller concessions or repairs.

Counteroffers are normal. Common negotiation points: price, closing date, included appliances/fixtures, repair credits, and who pays for which closing costs. Your agent will advise on competitive strategy based on market conditions.

Hire a licensed home inspector — costs $300-$500 and is worth every penny. Attend the inspection in person. Ask questions. Major concerns: foundation issues, roof condition, plumbing, electrical, HVAC age. Consider specialty inspections for termites, radon, and sewer line.

Your lender orders an appraisal to confirm the home is worth the purchase price. If the appraisal comes in low, you can negotiate a lower price, make up the difference in cash, or walk away (if you have an appraisal contingency). Costs $300-$600.

Required by your lender. Shop around — prices vary significantly. Bundle with auto insurance for discounts. Make sure your policy covers replacement cost, not just market value. Get quotes at least 2 weeks before closing.

Schedule 24-48 hours before closing. Verify all agreed-upon repairs were completed. Check that nothing was damaged during the seller's move-out. Test appliances, lights, faucets, and HVAC. Confirm the home is in the condition specified in the contract.

You'll receive the CD at least 3 business days before closing. Compare it to your Loan Estimate — fees shouldn't have changed significantly. Check: interest rate, monthly payment, loan amount, closing costs, and cash needed to close. Ask your lender about anything unclear.

You'll need to wire the down payment and closing costs to the title company. Call the title company directly to verify wiring instructions — do NOT rely on emailed instructions (wire fraud is common). Your lender will tell you the exact amount needed.

Bring a government-issued photo ID and a personal checkbook (for minor last-minute adjustments). You'll sign a stack of documents including the deed, mortgage note, and various disclosures. Take your time and ask questions. When it's done, you get the keys.

Transfer or set up: electricity, gas, water, sewer, internet, trash pickup. Change all exterior door locks on day one — you don't know who has copies of the old keys. File a change of address with USPS.