Homebuying Checklist for the First-Time Homebuyer

Buying your first home is exciting – but it’s also complex.

Why it matters: First-time buyers face financial decisions, legal paperwork, and big commitments. A clear checklist helps you stay organized and avoid costly mistakes.

1. Determine Budget

• Calculate what you can afford (down payment, mortgage, savings, monthly expenses).

• Pull credit report.

2. Meet with Lender

• Review finances and loan options.

• Ask about down payment assistance.

3. Get Preapproved

• Provide income, debt, and job history.

• Gather tax returns, bank statements, W-2s, pay stubs.

4. Explore Financing Options

• Compare builder-preferred financing with other lenders.

• Look into construction loans if custom building.

5. Budget for Upgrades

• Base price + selected options = final loan amount.

• Stay within preapproval limit.

6. Plan for Cash Needs

• Earnest money deposit

• Remainder of down payment

• Closing costs

• Moving expenses

• Emergency reserves

7. Lock Mortgage Rate

• Typically 60 days; longer locks may cost more.

• Ask about “floatdown” if rates drop.

8. Understand Escrow

• Monthly payments may include taxes and insurance.

• Funds held by lender and paid when due.

9. Choose Insurance

• Shop quotes and coverage levels.

• Consider property, liability, flood, or personal property coverage.

10. Finalize Contract

• Review home plans, price, completion timeline.

• Negotiate fees or incentives.

• Confirm dispute resolution terms.

• Get Realtor or attorney review before signing.

Bottom line: Homebuying takes planning, patience, and smart choices. Follow these steps, ask questions, and lean on trusted experts to make your first purchase a success.

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