Last Updated: January 2026

Buying your first home is one of life's most exciting milestones, but the home buying process can also be overwhelming. With so many steps, decisions, and deadlines, it's easy to feel lost. That's why we created this comprehensive first-time home buyer checklist (homebuying checklist) to guide you through every stage of the buying process, from early preparation to when you close on your new home.

Whether you're just starting to think about homeownership or you've already begun house hunting, this step-by-step guide ensures you don't miss anything important. There are many factors to consider when you buy a home, and this first-time homebuyer checklist covers them all. Save this page and check off each item as you complete your journey to becoming a first-time home buyer.

Phase 1: Financial Preparation (6-12 Months Before)

The journey to homeownership starts long before you tour your first house. This comprehensive checklist phase sets you up for success as a first-time homebuyer. There are many factors to consider when preparing to buy a home, including your mortgage options and payment and closing costs.

Check Your Credit

• ☐ Pull your credit reports from all three bureaus at AnnualCreditReport.com (free annually)
• ☐ Review for errors and dispute any inaccuracies
• ☐ Check your credit scores (FICO scores from each bureau)
• ☐ Understand what affects your score: payment history, utilization, age of accounts, inquiries
• ☐ Set a target score: 620 minimum for most programs, 740+ for best rates

Improve Your Credit (If Needed)

• ☐ Pay all bills on time (payment history is 35% of your score)
• ☐ Reduce credit card balances to below 30% of limits
• ☐ Don't close old credit cards (length of history matters)
• ☐ Avoid opening new accounts (each inquiry temporarily lowers score)
• ☐ Consider becoming an authorized user on a responsible person's account

Assess Your Financial Situation

• ☐ Calculate your gross monthly income (before taxes)
• ☐ List all monthly debt payments: car loans, student loans, credit cards, etc.
• ☐ Calculate your debt-to-income ratio (monthly debts ÷ gross monthly income)
• ☐ Review your savings: emergency fund, down payment savings, other assets
• ☐ Create or update your budget with realistic housing expenses

Start Saving

• ☐ Determine how much you need: down payment + closing costs + reserves
• ☐ Open a dedicated savings account for your home purchase
• ☐ Set up automatic transfers to your home savings account
• ☐ Research down payment assistance that may reduce what you need to save
• ☐ Explore gift fund options from family (most loan programs allow this)

Stabilize Your Employment

• ☐ Maintain steady employment (lenders prefer 2+ years at same job)
• ☐ Avoid job changes if possible during the buying process
• ☐ Document self-employment income with tax returns (2 years minimum)
• ☐ Gather pay stubs and employment verification for lender requests

Phase 2: Education and Research (3-6 Months Before)

Knowledge is power when buying a home. This phase helps you understand the process and identify your options.

Complete Homebuyer Education

• ☐ Find HUD-approved courses at HUD.gov or through your state housing agency
• ☐ Choose your format: in-person class, online course, or one-on-one counseling
• ☐ Complete the course (typically 4-8 hours)
• ☐ Save your certificate, required for most assistance programs
• ☐ Ask questions about anything you don't understand

Research First Time Buyer Programs

• ☐ Identify programs you qualify for based on income, location, and buyer status
• ☐ Check state housing finance agency programs
• ☐ Research city and county down payment assistance
• ☐ Look into employer homebuyer benefits
• ☐ Explore profession-specific programs (teachers, first responders, healthcare)
• ☐ Learn about Mortgage Credit Certificates for tax credits

Understand Your Loan Options

• ☐ FHA loans: 3.5% down, credit scores 580+, government-backed mortgage
• ☐ Conventional loans: 3-20% down, credit scores 620+, private mortgage insurance (PMI) removable
• ☐ VA loans: 0% down for eligible veterans and service members
• ☐ USDA loans: 0% down for rural/suburban areas
• ☐ State program loans: Often come with below-market rates and assistance

Research Your Target Market

• ☐ Identify preferred neighborhoods based on commute, schools, amenities
• ☐ Research home prices in your target areas
• ☐ Understand market conditions: buyer's market, seller's market, or balanced
• ☐ Check property taxes in different areas (can vary significantly)
• ☐ Research homeowners associations and their fees/rules

Create Your Wish List

• ☐ List must-haves: bedrooms, bathrooms, garage, yard, etc.
• ☐ List nice-to-haves: features you'd love but could live without
• ☐ List deal-breakers: things you absolutely won't accept
• ☐ Consider future needs: growing family, aging parents, work changes
• ☐ Be realistic about what your budget can achieve

Phase 3: Getting Pre-Approved (1-3 Months Before)

The mortgage approval process is essential before house hunting. Getting pre-approved for a mortgage tells you exactly how much you can afford and shows sellers you're serious about your home purchase.

Gather Your Documents

• ☐ Government-issued ID: Driver's license, passport, or state ID
• ☐ Social Security card or documentation
• ☐ Pay stubs: Most recent 30 days
• ☐ W-2 forms: Past 2 years
• ☐ Tax returns: Past 2 years (all pages, all schedules)
• ☐ Bank statements: Past 2-3 months (all pages, all accounts)
• ☐ Investment account statements: If using for down payment
• ☐ Employment verification: HR contact or employment letter
• ☐ Gift letter: If receiving gift funds for down payment
• ☐ Bankruptcy/foreclosure papers: If applicable

Shop for a Lender

• ☐ Get quotes from 3-5 lenders (banks, credit unions, online lenders)
• ☐ Compare interest rates (APR includes fees for true comparison)
• ☐ Compare fees and closing costs
• ☐ Ask about loan programs they offer (especially DPA programs)
• ☐ Check reviews and responsiveness
• ☐ Consider local vs. national lenders

Apply for Pre-Approval

• ☐ Complete loan applications with your chosen lenders
• ☐ Submit required documentation
• ☐ Receive Loan Estimates within 3 business days
• ☐ Review and compare Loan Estimates from each lender
• ☐ Get your pre-approval letter stating your approved amount

Apply for Assistance Programs

• ☐ Apply for down payment assistance (often done with mortgage application)
• ☐ Request Mortgage Credit Certificate if available in your state
• ☐ Complete any additional program requirements
• ☐ Confirm timeline for program approvals

Important Pre-Approval Reminders

• ☐ DON'T make large purchases or open new credit accounts
• ☐ DON'T change jobs if possible
• ☐ DON'T move money around without documentation
• ☐ DON'T co-sign for anyone else's loan
• ☐ DO continue paying all bills on time

Phase 4: Finding a Real Estate Agent

A great buyer's agent is your advocate throughout the process. Finding the right one is crucial.

Find and Interview Agents

• ☐ Ask for referrals from friends, family, coworkers
• ☐ Research agents online: reviews, experience, specialties
• ☐ Interview 2-3 agents before deciding
• ☐ Ask about experience with first time buyers and your target areas
• ☐ Discuss communication style and availability
• ☐ Ask about their process and what to expect

Questions to Ask Agents

• ☐ How long have you been in real estate?
• ☐ How many first time buyers have you helped?
• ☐ How well do you know my target neighborhoods?
• ☐ How quickly do you typically respond to calls/texts?
• ☐ Are you familiar with down payment assistance programs?
• ☐ What's your strategy in a competitive market?
• ☐ Can you provide references from recent first time buyers?

Finalize Your Agent Relationship

• ☐ Review any buyer's agreement if required in your state
• ☐ Understand the commission structure
• ☐ Set expectations for communication and showing schedules
• ☐ Share your pre-approval and search criteria
• ☐ Begin receiving listings that match your criteria

Phase 5: House Hunting and Home Search

This is the exciting part of the home search! But stay focused and objective to find the right home. First-time buyers should be systematic during the home search process.

Prepare for Home Tours

• ☐ Set up saved searches on real estate websites
• ☐ Establish showing schedules with your agent
• ☐ Create a home tour checklist of things to look for
• ☐ Bring your wish list to compare each home against
• ☐ Take photos and notes at each showing

What to Look For During Tours

• ☐ Structural elements: foundation, roof, windows, doors
• ☐ Systems: HVAC age and condition, water heater, electrical panel
• ☐ Plumbing: water pressure, drainage, visible pipes
• ☐ Signs of water damage: stains, warping, musty smells
• ☐ Natural light and ventilation
• ☐ Storage space: closets, garage, basement, attic
• ☐ Layout and flow: does it work for your lifestyle?
• ☐ Neighborhood: parking, noise, nearby amenities, feel of the street

Evaluate Each Home

• ☐ Compare to your wish list: must-haves, nice-to-haves, deal-breakers
• ☐ Research comparable sales to understand fair pricing
• ☐ Consider ongoing costs: utilities, maintenance, HOA fees
• ☐ Visit at different times: morning, evening, weekday, weekend
• ☐ Drive the commute to work during rush hour
• ☐ Research the school district even if you don't have kids (affects resale)

Stay Objective

• ☐ Don't fall in love too fast, homes can have hidden issues
• ☐ Separate cosmetic from structural: paint is easy, foundation is not
• ☐ Consider resale potential: is this home appealing to future buyers?
• ☐ Stick to your budget: don't get emotionally overextended
• ☐ Be prepared to walk away if something doesn't feel right

Phase 6: Making an Offer

You've found the home! Now it's time to negotiate and get your offer accepted.

Prepare Your Offer

• ☐ Review comparable sales with your agent to determine fair price
• ☐ Understand market conditions: are homes selling above, at, or below asking?
• ☐ Decide on your offer price
• ☐ Determine your earnest money deposit (typically 1-3% of purchase price)
• ☐ Discuss contingencies: inspection, appraisal, financing, sale of current home
• ☐ Set your closing date preference

Submit and Negotiate

• ☐ Submit written offer through your agent
• ☐ Include pre-approval letter
• ☐ Respond quickly to counteroffers
• ☐ Be prepared to negotiate price, contingencies, closing date, included items
• ☐ Know your walk-away point

Upon Offer Acceptance

• ☐ Sign the purchase agreement
• ☐ Submit earnest money deposit (usually within 3 days)
• ☐ Receive copy of fully executed contract
• ☐ Note all contingency deadlines
• ☐ Celebrate (briefly)! You're under contract!

Phase 7: Under Contract Period

The clock starts ticking once your offer is accepted. Multiple things happen simultaneously during this period.

Notify Your Lender

• ☐ Send executed contract to lender immediately
• ☐ Lock your interest rate (discuss timing with lender)
• ☐ Complete full loan application if not already done
• ☐ Order appraisal (lender will arrange)
• ☐ Respond promptly to lender requests for additional documents

Schedule and Complete Home Inspection

• ☐ Hire a licensed home inspector for a thorough home inspection (your agent can recommend a reputable home inspector)
• ☐ Schedule inspection within contingency period (usually 5-10 days during the approval process)
• ☐ Attend the inspection with your mortgage lender requirements in mind
• ☐ Review inspection report carefully
• ☐ Identify major issues vs. normal wear and maintenance items
• ☐ Negotiate repairs or credits if significant issues found
• ☐ Remove inspection contingency or walk away if issues are too significant

Consider Additional Inspections

• ☐ Radon testing (recommended in many areas)
• ☐ Sewer/septic inspection (especially for older homes)
• ☐ Pest/termite inspection (required by some lenders)
• ☐ Roof inspection (if inspector has concerns)
• ☐ Mold inspection (if signs of water damage present)

Wait for Home Appraisal

• ☐ Home appraisal ordered by lender (you pay the fee, usually $400-$600)
• ☐ Appraiser visits property to determine the home's value
• ☐ Receive appraisal report
• ☐ If appraisal is at or above purchase price: proceed
• ☐ If appraisal is low: renegotiate price, pay difference, or walk away

Complete Title Work

• ☐ Title company orders title search
• ☐ Review title commitment for any issues
• ☐ Clear any title issues before closing
• ☐ Purchase title insurance (protects against future claims)

Finalize Insurance

• ☐ Get homeowners insurance quotes (required by your mortgage lender)
• ☐ Choose a policy that meets lender requirements
• ☐ Provide proof of insurance to lender
• ☐ Pay first year premium (may be at closing or upfront)

Mortgage Processing

• ☐ Respond to all lender requests promptly
• ☐ Verify employment (lender will contact your employer)
• ☐ Explain any large deposits or transfers in bank statements
• ☐ Receive Closing Disclosure (at least 3 days before closing)
• ☐ Review Closing Disclosure carefully, compare to Loan Estimate
• ☐ Ask questions about anything you don't understand

Critical Reminders During Under Contract

• ☐ DON'T make large purchases (cars, furniture, appliances)
• ☐ DON'T change jobs without consulting your lender first
• ☐ DON'T open or close credit accounts
• ☐ DON'T make large deposits you can't document
• ☐ DO maintain your financial stability

Phase 8: Preparing to Close

As closing approaches, several final steps must be completed.

Final Walk-Through

• ☐ Schedule walk-through 24-48 hours before closing
• ☐ Verify all negotiated repairs completed
• ☐ Confirm all agreed-upon items included (appliances, fixtures)
• ☐ Check that sellers have moved out
• ☐ Test all systems: HVAC, water, appliances, lights, garage door
• ☐ Check for any new damage
• ☐ Document any issues to address before closing

Arrange Closing Funds

• ☐ Get final closing cost amount from title company/lender
• ☐ Obtain certified/cashier's check made out to title company (or wire funds)
• ☐ If wiring funds: verify wire instructions directly with title company (watch for wire fraud!)
• ☐ Bring valid government ID to closing

Set Up Utilities

• ☐ Electric: transfer or set up new account
• ☐ Gas: transfer or set up new account
• ☐ Water/sewer: transfer or set up new account
• ☐ Trash/recycling: set up service
• ☐ Internet/cable: schedule installation
• ☐ Schedule start dates for day of closing or day after

Prepare for Moving

• ☐ Get moving quotes if using a company
• ☐ Reserve moving truck if DIY
• ☐ Start packing non-essentials
• ☐ Update address with USPS, employers, banks, subscriptions
• ☐ Notify current landlord of move-out date (if applicable)

Phase 9: Closing Day

Closing day is when you officially become a homeowner!

At the Closing Table

• ☐ Bring required items: government ID, certified check (if applicable)
• ☐ Review all documents before signing
• ☐ Ask questions about anything unclear
• ☐ Sign all required documents (there will be many!)
• ☐ Provide down payment and closing costs
• ☐ Receive copies of all documents

Key Documents You'll Sign

• ☐ Closing Disclosure: final loan terms and closing costs
• ☐ Promissory Note: your promise to repay the loan
• ☐ Deed of Trust/Mortgage: secures the loan with the property
• ☐ Deed: transfers ownership to you
• ☐ Title insurance documents
• ☐ Initial escrow statement: taxes and insurance held by lender

After Signing

• ☐ Receive the keys to your new home!
• ☐ Receive garage door openers, gate codes, etc.
• ☐ Get warranty information for any systems or appliances
• ☐ Keep all closing documents in a safe place
• ☐ CELEBRATE! You're a homeowner!

Phase 10: After Closing and Home Improvement

Congratulations on your home purchase! But there are still a few important tasks to complete as a new homeowner, including potential home improvement projects.

Immediate Tasks

• ☐ Change locks (you never know who has old keys)
• ☐ Update security codes for garage, alarm system
• ☐ Locate main water shut-off valve
• ☐ Locate electrical panel
• ☐ Locate gas shut-off (if applicable)
• ☐ Test smoke and CO detectors

First Week Tasks

• ☐ Deep clean before moving in
• ☐ Change HVAC filters
• ☐ Set up mail forwarding
• ☐ Update driver's license and vehicle registration
• ☐ Register to vote at new address
• ☐ Update address with banks, credit cards, subscriptions

First Month Tasks

• ☐ Create a home maintenance schedule
• ☐ Build an emergency fund for repairs (aim for 1% of home value annually)
• ☐ Save closing documents securely for tax time
• ☐ File homestead exemption if available in your area
• ☐ Set up automatic mortgage payments
• ☐ Learn about your neighborhood: meet neighbors, find local services

Tax Season Tasks

• ☐ Gather mortgage interest statement (Form 1098)
• ☐ Gather property tax records
• ☐ Claim MCC tax credit if you have one
• ☐ Deduct mortgage interest and property taxes if itemizing
• ☐ Claim any energy efficiency credits for improvements

First Time Home Buyer Checklist FAQs

How long does it take to buy a house for a first time buyer?

The complete process typically takes 3-6 months from start to finish. Financial preparation takes 1-6 months depending on your credit and savings situation. Once you start actively house hunting, finding a home takes 1-3 months on average (varies by market). From accepted offer to closing is typically 30-45 days. In competitive markets, the timeline may be longer; in buyer's markets, it could be shorter.

What's the first step in buying a house?

The first step is checking your credit and financial readiness. Pull your credit reports, understand your credit scores, calculate your debt-to-income ratio, and assess your savings. This tells you where you stand and what you need to work on. Many first time buyers need 3-12 months of preparation before they're ready to get pre-approved and start house hunting.

How much money do I need to buy my first house?

The minimum depends on your loan program and whether you use down payment assistance. VA and USDA loans require 0% down. FHA requires 3.5% down. Conventional can go as low as 3% down. Plus, you'll need 2-5% for closing costs, though some assistance programs cover these too. With maximum assistance, some first time buyers purchase with less than 3% of the purchase price out of pocket.

Should I get pre-approved before looking at houses?

Absolutely yes. Pre-approval tells you exactly what you can afford, preventing you from falling in love with homes outside your budget. It also shows sellers you're a serious, qualified buyer, essential in competitive markets where sellers may have multiple offers. Most real estate agents won't show homes without proof of pre-approval or pre-qualification.

What credit score do I need to buy a house?

Minimum credit scores vary by loan type: FHA loans require 580 (or 500 with 10% down), conventional loans typically require 620-660, and VA/USDA loans have no official minimum (though lenders often want 580-640). For the best interest rates, aim for 740+. Higher scores save you money through better rates and lower mortgage insurance costs.

How do I find a good first time buyer real estate agent?

Ask for referrals from friends and family who recently bought homes. Research agents online, looking for experience with first time buyers in your target areas. Interview 2-3 agents before choosing. Ask about their experience, communication style, and familiarity with first time buyer programs. A good first time buyer agent is patient, educational, and knowledgeable about assistance programs.

What should I look for during a home tour?

Beyond the obvious layout and features, check structural elements (foundation, roof, windows), systems (HVAC, water heater, electrical), signs of water damage, and the condition of major components. Also evaluate the neighborhood, parking, natural light, and storage. Take photos and notes to remember each home. Bring your wish list to compare against.

What happens if the appraisal comes in low?

If the appraisal is lower than your purchase price, you have options: renegotiate the price with the seller to match the appraisal, pay the difference between appraised value and purchase price out of pocket, challenge the appraisal with additional comparable sales, or walk away using your appraisal contingency. Most often, the buyer and seller negotiate to meet somewhere in between.

Summary: Your First Time Home Buyer Journey

Buying your first home is a journey with many steps, but breaking it into phases makes it manageable:

• Phase 1: Financial preparation, check credit, save money, stabilize employment
• Phase 2: Education, complete homebuyer course, research programs and loan options
• Phase 3: Pre-approval, gather documents, shop lenders, get approved
• Phase 4: Find an agent, interview and select your buyer's agent
• Phase 5: House hunting, tour homes, evaluate, stay objective
• Phase 6: Make an offer, negotiate and get under contract
• Phase 7: Under contract, inspections, appraisal, loan processing
• Phase 8: Prepare to close, final walk-through, arrange funds, set up utilities
• Phase 9: Closing day, sign documents, receive keys!
• Phase 10: After closing, change locks, set up home, enjoy homeownership!

Save this checklist and check off each item as you progress. With preparation and patience, you'll successfully navigate your journey to becoming a homeowner.