Buying your first home is exciting—but it also comes with new financial responsibilities. This checklist will guide you step by step through the financial prep and planning needed to make confident, informed decisions.
🏁 BEFORE YOU START HOUSE HUNTING
1. Check Your Credit Score
- ☐ Obtain a free credit report from Equifax, Experian, or TransUnion
- ☐ Review for errors or issues that may impact your loan eligibility
- ☐ Aim for a score of 620+ (740+ for the best mortgage rates)
2. Reduce Your Debt-to-Income Ratio (DTI)
- ☐ Pay down credit cards, personal loans, or student loans if possible
- ☐ Avoid taking on new debt before or during the homebuying process
3. Create a Realistic Budget
- ☐ Use a home affordability calculator
- ☐ Account for monthly expenses: mortgage, taxes, insurance, utilities, maintenance
- ☐ Plan for a comfortable monthly payment (no more than 28% of gross income)
4. Build Your Down Payment Fund
- ☐ Set a target (typically 3%–20% of the home’s price)
- ☐ Explore down payment assistance programs in your area
- ☐ Save separately for a down payment and an emergency fund
5. Save for Closing Costs
- ☐ Budget 2%–5% of the purchase price
- ☐ Include costs like appraisal, title insurance, loan origination, and legal fees
🧾 WHEN YOU’RE READY TO BUY
6. Get Pre-Approved for a Mortgage
- ☐ Compare lenders for best interest rates and loan terms
- ☐ Gather financial documents:
- W-2s and/or 1099s (last 2 years)
- Bank statements (last 2–3 months)
- Pay stubs (last 30 days)
- Tax returns (last 2 years)
- ☐ Request a pre-approval letter to strengthen your offers
7. Understand Mortgage Options
- ☐ Compare fixed-rate vs. adjustable-rate mortgages (ARM)
- ☐ Learn about conventional, FHA, VA, and USDA loan options
- ☐ Ask about loan limits, PMI requirements, and first-time buyer incentives
8. Factor in Additional Expenses
- ☐ Homeowners insurance
- ☐ Property taxes
- ☐ HOA fees (if applicable)
- ☐ Utilities and home maintenance
🏡 AFTER YOUR OFFER IS ACCEPTED
9. Hire a Home Inspector
- ☐ Schedule a thorough inspection
- ☐ Review the report carefully and request repairs if needed
10. Review Loan Disclosures
- ☐ Understand your interest rate, monthly payments, and closing costs
- ☐ Ask your lender for clarification on anything unclear
11. Do a Final Walkthrough
- ☐ Confirm agreed-upon repairs were completed
- ☐ Ensure the property is in the condition you expect before closing
🎉 AT CLOSING & BEYOND
12. Bring Required Funds to Closing
- ☐ Wire transfer or cashier’s check for down payment and closing costs
- ☐ Bring a valid photo ID
13. Sign All Documents and Receive Keys
- ☐ Review mortgage and title documents carefully
- ☐ Ask your agent or attorney to explain any unfamiliar terms
14. Set Up Your New Finances
- ☐ Start a home maintenance savings fund
- ☐ Review new monthly budget with your mortgage and utility bills
- ☐ Update your address and enroll in autopay for your mortgage
🧠 Pro Tip:
Keep digital and paper copies of all documents—loan paperwork, inspection reports, and closing statements—for future reference.
