First-Time Homebuyer Checklist: From Budget to Keys

A step-by-step first-time homebuyer checklist, from credit checks and preapproval to inspection and closing. Tick off steps; progress saves on your device.

28 steps By Rizwan Ali, software developer Updated September 2026 Free, no sign-up, nothing leaves your device

Buying a home is a long chain of small decisions, and it is easy to lose track of what comes next. This checklist puts the steps in order, from getting your finances ready to the day you get the keys. Tick each step as you finish it. Your progress is saved in your own browser, so you can close the page and come back.

The steps assume a typical purchase with a mortgage in the United States. Details vary by state, lender and loan type, so treat this as a map, not legal or financial advice. Your lender, agent and closing attorney or title company can tell you what applies to your purchase.

0 of 28 steps done Progress saves on this device

Get your finances ready 0 of 6

Start six to twelve months before you plan to buy, if you can.

  1. Get your free reports from AnnualCreditReport.com, the official site, and dispute anything that is wrong. A higher score usually means a lower rate, and errors can take weeks to fix.

    AnnualCreditReport.com

  2. Start with the common 28/36 guideline, then compare the result with what you would be comfortable paying every month. A lender may approve more than feels safe.

    House affordability calculator

  3. Twenty percent avoids mortgage insurance on most conventional loans, but many first-time buyers put down less, and some loan programs accept as little as about 3% to 3.5%. Compare a few amounts before deciding.

    Mortgage calculator

  4. Closing costs are often around 2% to 5% of the price. You will also want money for moving, early repairs and an emergency fund, so do not spend every dollar on the down payment.

  5. Lenders look at your debt-to-income ratio and your credit. Avoid opening new cards, financing a car or making other big purchases before you close.

  6. Lenders typically ask for recent pay stubs, W-2s or 1099s, two years of tax returns, recent bank statements, photo ID and a list of your debts. Self-employed buyers usually need more, such as profit and loss statements.

Line up your financing 0 of 5

Do this before you start touring homes seriously.

  1. Conventional, FHA, VA (for eligible service members and veterans) and USDA (for eligible rural areas) have different down payments, insurance costs and eligibility rules. Ask each lender which you qualify for.

  2. Many states and cities offer down payment or closing cost help and special loan programs for first-time buyers. Search for your state housing finance agency to see what is available and what the rules are.

  3. Ask each for a Loan Estimate for the same loan. It is a standard form, so you can compare rates, fees and cash needed at closing side by side. According to the CFPB, multiple credit checks from mortgage lenders within a 45-day window are recorded on your credit report as a single inquiry.

    CFPB: Owning a Home

  4. A preapproval letter says a lender is tentatively willing to lend up to a certain amount. It is not a guaranteed offer, but sellers frequently require one. Ask what it is based on, because lenders verify different things, and note that letters can expire, often in 30 to 60 days.

  5. See how a 15-year and a 30-year loan, or a smaller and larger down payment, change your monthly payment and your total cost, including the month one option becomes cheaper than another.

    15 vs 30 year mortgage calculator

Find and win a home 0 of 4

Keep the full monthly cost in view, not only the asking price.

  1. Talk to more than one. Ask about their experience in your area and how they are paid, ask whether a written agreement is required, and read any agreement carefully before you sign it.

  2. Separate what you truly need (commute, bedrooms, budget) from what would be nice. It makes tours faster and keeps you from overspending on features you will not use.

  3. Look up property taxes, HOA dues, insurance and typical utilities for each home you like. Two homes at the same price can have very different monthly costs.

    Mortgage calculator

  4. Your agent helps you set the price, the contingencies (such as inspection, financing and appraisal) and the earnest money deposit. Do not waive protections you cannot afford to lose.

From contract to closing 0 of 10

Deadlines matter in this stage, so put every date on your calendar.

  1. Earnest money is a deposit that is usually credited toward your costs at closing. Missing the deadline in the contract can put your deal at risk.

  2. A general inspection, and specialist ones such as radon, sewer line or termites where relevant, can uncover repairs to negotiate or reasons to walk away. Do it within the inspection period in your contract.

  3. Your lender will require proof of coverage before closing. Get quotes early because the cost affects your monthly payment, and ask whether flood insurance is needed for the property.

  4. A rate lock holds your quoted rate for a set period. Ask about the length, the cost and what happens if closing is delayed.

  5. The lender orders an appraisal to confirm the home is worth the price. A title search checks for liens or ownership problems, and title insurance protects against them. Answer requests for documents quickly.

  6. Do not change jobs, open credit, move large sums of money or make big purchases before closing unless you have checked with your lender first.

  7. You should receive it at least three business days before closing. Compare it line by line with your Loan Estimate and ask about any differences.

  8. Scammers imitate title companies and send fake wiring instructions. Call a phone number you already know to verify them before you send any closing funds.

  9. Check that agreed repairs were made, the home is in the condition you expect and included items are still there.

  10. Bring photo ID and the funds you need, sent as your closing agent instructs. You will sign the loan and transfer documents, and then you get the keys.

After you move in 0 of 3

A few small tasks now save money and stress later.

  1. Note who your loan servicer is, set up automatic payments if you like, and understand how your escrow account works. Store your closing documents somewhere safe.

  2. Some areas offer a homestead or other exemption for owner-occupied homes that you may need to apply for. Ask your county assessor or check their website.

  3. A common guideline is to budget around 1% of the home's value each year for upkeep and repairs. Set up a separate savings account so the money is there when you need it.

Common mistakes to avoid

  • Shopping before you are preapproved. Without a preapproval you may fall in love with a home you cannot finance, and sellers may not take your offer seriously.
  • Budgeting only for the mortgage payment. Property tax, insurance, HOA dues, utilities and maintenance can add hundreds of dollars a month. Use the full monthly cost.
  • Draining every dollar for the down payment. Closing costs and early repairs are real. Keep a cash reserve so one surprise does not become debt.
  • Making big financial changes before closing. A new car loan or a job change can change your approval. Keep things steady until you have the keys.
  • Skipping the inspection. An inspection is one of your best chances to find expensive problems before they become yours.
  • Trusting emailed wire instructions. Always confirm by calling a number you already know. Wire fraud is common and hard to reverse.

Related calculators and guides

Frequently asked questions

How long does it take to buy a first home?

Preparing your finances can take months. Once you are preapproved, finding a home varies widely with the market. After an accepted offer, the time to closing depends on the lender, the property and how quickly paperwork moves, so ask your lender for their typical timeline and plan for the process to take longer than you expect.

How much do I need for a down payment?

It depends on the loan. Twenty percent avoids mortgage insurance on most conventional loans, but several programs accept much less, from about 3% to 3.5%. A smaller down payment means a larger loan and usually mortgage insurance, so compare the total cost.

What is the difference between prequalification and preapproval?

Both are letters saying how much a lender may be willing to lend, and neither is a guaranteed loan. Lenders use the two words differently: according to the CFPB, some base a prequalification on information you report and only issue a preapproval based on verified information. Ask what each letter is based on.

What are closing costs?

They are the fees to complete the purchase, such as lender fees, appraisal, title insurance and prepaid taxes and insurance. They are often a few percent of the price. Your Loan Estimate and Closing Disclosure list them.

Do I need a real estate agent?

You are not required to use one, but many buyers find an agent helpful for finding homes, negotiating and handling paperwork. Read any agreement carefully and ask how the agent is paid.

What happens to my progress on this checklist?

It is saved only in your own browser, on this device. We never receive it. Clearing your browser data, or using a private window, will erase it, and it will not follow you to another device. You can print the list to keep a copy.