Buying your first home is exciting—and overwhelming. There are dozens of steps between "I want to buy a house" and holding the keys. This checklist breaks down the entire process into manageable phases so you don't miss anything important.
Phase 1: Financial Preparation (3-12 Months Before)
Before you start house hunting, get your finances in order. This phase can take anywhere from 3 months to a year depending on your starting point.
Check Your Credit Score
Your credit score determines your mortgage rate. Higher score = lower interest = huge savings over 30 years.
- 760+ — Best rates available
- 700-759 — Good rates
- 620-699 — May qualify, higher rates
- Below 620 — May need FHA loan or time to improve
Save for Down Payment & Closing Costs
Plan for 3-20% down payment plus 2-5% for closing costs.
- Conventional loan: 3-20% down (avoid PMI at 20%)
- FHA loan: 3.5% down minimum
- VA loan: 0% down for eligible veterans
- Closing costs: Budget 2-5% of home price
Build Your Emergency Fund
Keep 3-6 months of expenses saved separate from your down payment. Homeownership comes with surprise repairs.
Avoid Major Financial Changes
Don't open new credit cards, take out loans, or change jobs during this period. Lenders want stability.
💡 What Can You Afford?
Use our mortgage calculator to estimate monthly payments. A common rule: keep housing costs under 28% of gross income.
Phase 2: Pre-Approval (1-2 Months Before)
Get Pre-Approved for a Mortgage
Pre-approval shows sellers you're serious and tells you exactly how much you can borrow.
- Shop at least 3 lenders for best rates
- Compare within 14-45 days to minimize credit score impact
- Gather documents: W-2s, tax returns, bank statements, pay stubs
Find a Real Estate Agent
A buyer's agent represents your interests and is typically paid by the seller. Look for:
- Experience with first-time buyers
- Knowledge of your target neighborhoods
- Good communication style
- References from past clients
Phase 3: House Hunting
Define Your Must-Haves vs. Nice-to-Haves
Be clear about what you need vs. what you want. This helps your agent find the right homes.
- Must-haves: Bedrooms, location, school district, accessibility
- Nice-to-haves: Updated kitchen, large yard, specific finishes
- Deal-breakers: Flood zone, major structural issues, HOA restrictions
Tour Homes & Take Notes
Visit at least 5-10 homes before making an offer. Take photos and notes—they'll blur together later.
Phase 4: Making an Offer
Submit Your Offer
Your agent will help you write a competitive offer. Key components:
- Offer price: Based on comparable sales (comps)
- Earnest money: Typically 1-3% of offer price
- Contingencies: Inspection, financing, appraisal
- Closing timeline: Usually 30-45 days
⚠️ Don't Skip Contingencies
In hot markets, buyers may waive contingencies to compete. This is risky! At minimum, keep the inspection contingency so you can back out if major issues are found.
Phase 5: Under Contract
Schedule Home Inspection
Hire a licensed home inspector ($300-500). Attend the inspection if possible—you'll learn a lot about the home.
- Roof, foundation, HVAC, plumbing, electrical
- Ask for a pest/termite inspection too
- Negotiate repairs or credits based on findings
Appraisal & Final Loan Approval
The lender orders an appraisal to confirm the home is worth the loan amount. If it comes in low, you may need to renegotiate price or bring extra cash.
Phase 6: Closing
Final Walkthrough & Closing Day
Do a final walkthrough 24-48 hours before closing to ensure repairs were made and the home is in agreed condition.
- Bring government ID and cashier's check (or wire funds)
- Review and sign closing documents (lots of them!)
- Get your keys! 🎉
Closing Cost Breakdown
On a $350,000 home, expect to pay $7,000-17,500 in closing costs:
| Cost | Typical Range |
|---|---|
| Loan origination fee | 0.5-1% of loan |
| Appraisal | $300-600 |
| Home inspection | $300-500 |
| Title insurance & search | $1,000-3,000 |
| Attorney fees (if required) | $500-1,500 |
| Escrow deposits (taxes/insurance) | 2-6 months |
| Recording fees | $100-300 |
| Total | 2-5% of price |
First-Time Buyer Programs
Check if you qualify for special programs:
- FHA loans: 3.5% down, more flexible credit requirements
- VA loans: 0% down for veterans and active military
- USDA loans: 0% down for rural areas
- State/local programs: Down payment assistance, tax credits
- Employer programs: Some employers offer homebuying assistance
✅ Quick Reference Checklist
- ☐ Check credit score and dispute errors
- ☐ Save for down payment (3-20%)
- ☐ Save for closing costs (2-5%)
- ☐ Build emergency fund (3-6 months)
- ☐ Get pre-approved from 3+ lenders
- ☐ Find a buyer's agent
- ☐ Define must-haves and budget
- ☐ Tour homes and make offer
- ☐ Complete home inspection
- ☐ Final walkthrough
- ☐ Sign closing documents
- ☐ Get the keys! 🏡
🏠 Calculate Your Mortgage Payment
See exactly what you'll pay each month based on price, down payment, and interest rate.
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