First-Time Buyer Checklist

Pull your credit reports

Get all 3 bureaus free at AnnualCreditReport.com. Look for errors and dispute anything inaccurate.

Pay down revolving balances

Get credit card utilization below 10% to maximize your score before applying.

Stop opening new credit lines

No new cards, car loans, or any credit applications for at least 6 months before applying.

Save for your down payment

Aim for 10–20% of your target home price. 20% avoids PMI; 10% preserves cash reserves.

Save for closing costs

Budget 2–5% of the loan amount on top of the down payment. Often $8,000–$20,000.

Keep 3–6 months of expenses in reserve

Don't drain your emergency fund on the down payment. Homeownership has unexpected costs.

Gather your financial documents

W-2s and tax returns (2 years), pay stubs (30 days), bank statements (2–3 months), government ID.

Run your numbers in the calculator

Find the price range where the full monthly payment (PITI) fits your budget — not just the P&I.

Get quotes from at least 3 lenders

Banks, credit unions, and mortgage brokers all. Multiple inquiries within 45 days count as one credit pull.

Compare Loan Estimates side by side

Compare APR, not just rate. Section A of the Loan Estimate shows lender-specific fees — that's where they differ.

Get a full pre-approval letter

Pre-approval (real credit pull + income verification) beats pre-qualification in competitive markets.

Write down must-haves vs. nice-to-haves

Bedrooms, commute, schools, neighborhood. Separate the non-negotiables from the wish list before emotions take over.

Research neighborhoods and property taxes

Tax rates vary widely even within a metro. High property taxes can add $300–$600/month to your true cost.

Find a buyer's agent

The seller pays both agents' commissions — you get representation at no direct cost. Interview at least 2.

Tour homes and attend open houses

Research comparable sales before making an offer

Ask your agent for recent comps (sold price, not list price) within the last 90 days in the same area.

Determine your offer price based on comps

List price is the seller's ask. Sold comps tell you what the market will actually bear.

Review the purchase agreement with your agent

Understand the contingencies: inspection, financing, appraisal. Don't waive them without understanding the risk.

Submit earnest money deposit

Typically 1–3% of purchase price. It's credited to your down payment at closing but at risk if you back out improperly.

Offer accepted — you're under contract

The clock starts now. You typically have 30–45 days to close.

Schedule and attend the home inspection

Hire your own inspector — they work for you. Attend in person and ask questions.

Review inspection report and negotiate repairs

Request repairs, a price reduction, or credits at closing for major issues. Minor cosmetic items aren't worth fighting over.

Submit all documents and finalize your loan

Respond quickly to any underwriter requests. Delays here are the #1 cause of closing postponements.

Shop for and bind homeowner's insurance

You need proof of insurance before closing. Get at least 3 quotes — rates vary significantly by insurer.

Review the appraisal

If it comes in below the purchase price, you'll need to renegotiate or cover the gap in cash.

Receive clear to close

Underwriting is satisfied. Your lender will issue the Closing Disclosure at least 3 business days before closing.

Review the Closing Disclosure carefully

Compare it line-by-line to your Loan Estimate. Question any new fees or increases over 10%.

Do the final walkthrough

Verify the home is in agreed-upon condition and that negotiated repairs were completed.

Wire your closing funds

Confirm wire instructions by phone with your title company — wire fraud is common. Never email wire instructions.

Sign all closing documents

Budget 1–2 hours. You'll sign ~100+ pages. Ask questions about anything you don't understand.

Receive your keys 🎉

Once funds are confirmed and title transfers, the home is yours.