Buy your first home without missing a critical step. Covers credit prep, mortgage shopping, house hunting, inspections, closing day, and move-in — designed for US buyers.
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.
Pull your free credit report from all 3 bureaus
Dispute any errors on your report
Pay down existing credit card balances below 30% utilization
Determine your budget
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.
Calculate your gross monthly income
List all monthly debts and expenses
Calculate your maximum comfortable monthly payment
Save for down payment and closing 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.
Save for down payment (target amount based on home price)
Save for closing costs (2-5% of purchase price)
Maintain an emergency fund (3-6 months of expenses)
Budget for moving costs and immediate home needs
Research first-time buyer assistance programs
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.
Get a quote from a traditional bank
Get a quote from a credit union
Get a quote from an online mortgage lender
Gather documents for pre-approval
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.
Last 2 years of tax returns and W-2s
Last 2 months of pay stubs
Last 2-3 months of bank statements
Government-issued photo ID
List of all debts (student loans, car loans, credit cards)
Obtain a pre-approval letter
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.
House Hunting
Find a buyer's agent (real estate agent)
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.
Interview at least 2-3 agents
Ask for references from recent first-time buyers
Create your must-haves vs. nice-to-haves list
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.
List your absolute must-haves
List your nice-to-haves
Identify deal-breakers
Research target neighborhoods
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.
Attend open houses and schedule private showings
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.
Making an Offer & Under Contract
Submit a written offer
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.
Determine your offer price based on comps and market
Prepare earnest money deposit (1-3% of offer price)
Include inspection, appraisal, and financing contingencies
Negotiate terms with the seller
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.
Schedule and attend the home inspection
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.
Hire a licensed home inspector
Attend the inspection and take notes
Request repairs or credits for major issues found
Consider radon, termite, and sewer scope inspections
Complete the lender's appraisal
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.
Closing & Move-In
Purchase homeowner's insurance
Required by your lender. Shop around — prices vary significantly, and bundling with auto insurance often unlocks discounts. Verify your policy covers replacement cost, not just market value. Get quotes at least 2 weeks before closing.
Get quotes from at least 3 insurance companies
Purchase a policy effective on closing day
Do a final walkthrough
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.
Review the Closing Disclosure (CD)
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.
Wire closing funds
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.
Call title company to verify wire instructions
Wire funds 1-2 days before closing
Attend closing and sign documents
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.
Bring government ID and personal checkbook
Receive your keys — congratulations, you're a homeowner
Set up utilities and change locks
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.
Transfer electricity, gas, water, and internet
Change all exterior locks
File a change of address with USPS
Frequently Asked Questions
How much do I need for a down payment on my first home?
Conventional loans typically require 3-5% down for first-time buyers, while FHA loans accept as low as 3.5%. VA and USDA loans offer zero-down options for eligible buyers. Beyond the down payment, budget an additional 2-5% of the purchase price for closing costs, which include lender fees, title insurance, and escrow deposits.
What credit score do I need to buy a house in 2026?
FHA loans require a minimum credit score of 580 for the 3.5% down payment option, though some lenders set their own minimums at 620. Conventional loans through Fannie Mae and Freddie Mac generally need a 620 minimum, but scores above 740 unlock the best interest rates. Each 20-point improvement in your score can save $50-100 per month on a $350,000 mortgage.
How long does it take to close on a house after an offer is accepted?
The average closing timeline is 30-45 days from accepted offer to keys in hand. Cash offers can close in as few as 7-14 days since they skip the mortgage approval process. Delays commonly occur during appraisal (if the home appraises below offer price) or when the lender requests additional documentation from the buyer.
Should I get a home inspection even if the seller provides a disclosure?
A seller's disclosure only covers issues the seller knows about and is legally required to share — it does not replace a professional inspection. A licensed inspector examines 400+ components including the roof, foundation, HVAC, electrical, and plumbing systems. The $350-500 inspection fee routinely uncovers $5,000-$20,000 in needed repairs that can be negotiated before closing.
What are the hidden costs of buying a first home beyond the mortgage?
Property taxes typically add $2,000-$8,000 annually depending on your state and home value. Homeowners insurance runs $1,200-$3,000 per year, and private mortgage insurance (PMI) adds $100-$300 monthly if your down payment is under 20%. Budget for immediate expenses like lawn equipment, appliances, and minor repairs — most new homeowners spend $3,000-$5,000 in the first three months.