First-Time Homebuyer Checklist
From credit check to closing day in 5 phases. Every document, decision, and deadline.
Typical Timeline
Prep
2-6 months
Pre-Approval
1-2 weeks
House Hunt
1-4 months
Under Contract
30-45 days
Closing
1-3 days
Assess Your Finances
Start 3-6 months before you want to buy. This preparation phase makes everything else faster and cheaper.
- Check your credit score — aim for 620+ (conventional loans), 580+ (FHA). Above 740 gets the best rates.
- Review your credit reports at annualcreditreport.com and dispute any errors
- Calculate your debt-to-income ratio — most lenders want total DTI under 43%, ideally under 36%
- Determine your budget: use the 28/36 rule (housing costs under 28% of gross income, total debt under 36%)
- Save for a down payment — 20% avoids PMI, but FHA allows 3.5% and conventional allows 3%
- Save an additional 2-5% of the purchase price for closing costs
- Build a reserve fund for move-in expenses and immediate repairs ($5,000-10,000 minimum)
- Avoid opening new credit cards, financing cars, or making large purchases
- Research first-time homebuyer programs in your state (down payment assistance, tax credits)
- Start documenting your income: keep pay stubs, tax returns, and bank statements organized
Get Pre-Approved
Pre-approval tells you exactly what you can borrow. It also shows sellers you are a serious, qualified buyer.
- Shop at least 3 lenders — mortgage rates and fees vary significantly between banks, credit unions, and brokers
- Compare Loan Estimates (standardized 3-page form) from each lender side by side
- Choose your loan type: conventional, FHA, VA, or USDA based on your situation
- Lock in your rate when you find a good one — rate locks typically last 30-60 days
- Get your pre-approval letter — it is valid for 60-90 days and specifies your max loan amount
Documents You may Need
• Last 2 years of tax returns (W-2s and 1040s)
• Last 30 days of pay stubs
• Last 2-3 months of bank statements (all pages)
• Photo ID (driver's license or passport)
• Social Security number for credit check
• Employment verification letter (if recent job change)
• Explanation letters for large deposits or credit issues
• Divorce decree or child support documentation (if applicable)
Find Your Home
The average buyer tours 10 homes over 10 weeks. Stay focused on your needs vs. wants list.
- Hire a buyer's agent — they are typically paid by the seller and negotiate on your behalf
- Create a needs vs. wants list: needs are non-negotiable (bedrooms, location, budget), wants are flexible
- Research neighborhoods: commute time, school ratings, crime statistics, flood zones
- Attend open houses and schedule private showings for your top picks
- Research comparable sales (comps) to understand fair market value
- Make a competitive offer: your agent will advise on price, contingencies, and closing timeline
- Include standard contingencies: inspection, appraisal, and financing
- Submit earnest money deposit (typically 1-3% of purchase price) within 3 days of accepted offer
Under Contract
This 30-45 day period is the most detail-heavy. Stay organized and respond to requests quickly.
- Schedule a home inspection within 7-10 days ($300-500 — never skip this)
- Review inspection report and negotiate repairs or credits with the seller
- Order a home appraisal through your lender (required — typically $400-600)
- Purchase homeowners insurance and provide proof to your lender before closing
- Respond to all lender document requests within 24 hours to avoid closing delays
- Review the Closing Disclosure (CD) at least 3 business days before closing — compare to your Loan Estimate
- Schedule and arrange utilities transfer for your move-in date
- Wire closing funds to the title company (verify wire instructions by phone — wire fraud is common)
Close & Move In
The finish line. Closing typically takes 1-2 hours. Bring your ID and a lot of patience for paperwork.
- Do a final walkthrough 24 hours before closing — verify repairs are done and the home is in agreed condition
- Bring government-issued photo ID and a cashier's check or wire transfer confirmation to closing
- Review and sign closing documents (deed of trust, promissory note, closing disclosure)
- Receive the keys, garage openers, and any security codes
- Change the locks on all exterior doors on day one
- File for your homestead exemption to reduce property taxes (deadline varies by state)
- Save all closing documents — you may need them for taxes, insurance claims, and future sale
Common First-Time Buyer Mistakes
- Buying at the top of your pre-approved amount — leave room for maintenance, repairs, and lifestyle
- Skipping the home inspection to make a more competitive offer (this can cost tens of thousands)
- Not shopping multiple lenders — a 0.25% rate difference saves $15,000+ on a $300,000 mortgage
- Opening new credit lines or making large purchases during underwriting (this can kill your loan)
- Forgetting about closing costs, which add 2-5% on top of your down payment
- Not budgeting for ongoing costs: property taxes, insurance, HOA fees, maintenance (1-2% of home value per year)
- Waiving the appraisal contingency in a competitive market without cash reserves to cover a gap
- Draining your entire savings for the down payment — keep at least 3 months of expenses in reserve
Mortgage & Homebuying Calculators
Know your numbers before you start shopping. These calculators help you set a realistic budget.
Frequently Asked Questions
How much do I need for a down payment?
It depends on the loan type. Conventional loans require as little as 3% down. FHA loans require 3.5%. VA and USDA loans offer 0% down for eligible buyers. Putting 20% down avoids private mortgage insurance (PMI), which typically costs 0.5-1% of the loan amount per year. Use our down payment calculator to find your target.
What credit score do I need to buy a house?
Minimum scores: 620 for conventional, 580 for FHA with 3.5% down, 500 for FHA with 10% down, no minimum for VA. However, a score of 740+ qualifies you for the best interest rates, which can save you tens of thousands over the life of the loan.
How much are closing costs?
Closing costs typically range from 2-5% of the loan amount. On a $300,000 home, expect $6,000-$15,000. This includes origination fees, title insurance, appraisal, escrow deposits, and prepaid items like homeowners insurance and property taxes. Sellers sometimes agree to pay a portion of closing costs as part of negotiations.
Should I get a fixed-rate or adjustable-rate mortgage?
A 30-year fixed-rate mortgage is the safest choice for most buyers — your payment never changes. ARMs offer lower initial rates (often 0.5-1% less) but adjust after 5, 7, or 10 years. An ARM might make sense if you plan to sell or refinance within the initial fixed period. Use our mortgage calculator to compare scenarios.
How long does it take to buy a house?
The entire process typically takes 3-6 months from start to finish. Financial preparation takes 2-6 months, pre-approval takes 1-2 weeks, house hunting averages 10 weeks, and closing takes 30-45 days after your offer is accepted.