First-Time Home Buyer Checklist 2026
Table of Contents
- Assess Your Finances and Credit Before You Start
- Steps to Buying a House for the First Time
- Determine Your First-Time Home Buyer Budget
- Questions to Ask When Buying a House
- Save for Down Payment, Closing Costs, and Cash to Close
- Understand Mortgage Options and Loan Types
- New Homeowner Checklist After Closing
- Common Mistakes First-Time Buyers Make
- Frequently Asked Questions
Last Updated: October 16, 2026
Assess Your Finances and Credit Before You Start
Before house hunting, use this first-time home buyer checklist to take a hard look at your finances.
Pull your credit report from all three bureaus (one free report annually from each).
Your credit score determines your interest rate. A 50-point difference can mean 6.5% versus 7%, tens of thousands over 30 years.
Next, assess your debt-to-income ratio, the percentage of gross monthly income going toward debt payments.
At Shawana Boyer, we've helped first-time homebuyers strengthen their finances before applying, smart planning that means better rates and no loan you can't afford.
Steps to Buying a House for the First Time
This first-time home buyer checklist involves eight critical steps to buying a house. Skip or rush one and you risk an expensive mistake.
Step 1: Check Your Credit Score and History
Your credit score is your financial report card, lenders use it to decide approval and rate.
Dispute inaccuracies immediately. The bureau has 30 days to investigate; unverified items get removed, and the process takes 30-60 days.
Review the past two years of credit history. Late payments, collections, and charge-offs hurt your score; with recent late payments, wait at least 12 months before applying.
Step 2: Calculate Debt-to-Income Ratio
Your debt-to-income ratio shows how much income is committed to debt. Add all monthly debt payments (credit cards, car loans, student loans, personal loans, child support) and divide by gross monthly income; 43% or lower is good. Example: $1,500 in debt on $5,000 income is 30%, healthy; adding a $1,200 mortgage brings it to 54%, too high for most lenders.
Step 3: Get Mortgage Pre-Approval
Pre-qualification is a rough estimate based on what you tell a lender; pre-approval is a commitment based on verified documents. You need pre-approval before making an offer.
To get pre-approved, you'll need:
- Recent pay stubs (typically last 30 days)
- W-2s or tax returns (last 2 years)
- Bank statements (typically last 60 days)
The lender verifies income, credit, and assets, then issues a pre-approval letter stating your maximum mortgage amount, valid 30-120 days.
Step 4: Build Your Real Estate Team
You need a real estate agent, a mortgage lender, and possibly a real estate attorney (depending on your state).
Choose an agent who knows your local market, Florida experience if buying in Florida, relocation expertise if moving from out of state.
Your lender funds the loan and guides you through underwriting. Compare rates from at least three lenders, a quarter-point difference compounds over 30 years.
Step 5: Start Your Home Search
With pre-approval in hand, start looking at homes. Your agent will search based on your budget, location, and must-haves.
Set realistic expectations. Your first home probably won't be perfect, it may need updates or sit outside your ideal neighborhood. Focus on core needs and budget fit.
Look at homes slightly below your pre-approval amount. Just because you can afford a $400,000 mortgage doesn't mean you should take it, leave room for taxes, insurance, maintenance, and surprises.
Step 6: Make an Offer and Negotiate
When you find a home, your agent helps you make an offer: purchase price, earnest money deposit (typically 1-3%), and contingencies.
Contingencies protect you. The home inspection contingency lets you back out over major problems; an appraisal contingency requires the home to appraise for at least the purchase price; a financing contingency covers loan denial.
Expect counter-offers. Negotiate in good faith, but know your walk-away point, don't get emotionally attached and overpay.
Step 7: Inspection, Appraisal, and Underwriting
Once your offer is accepted, you have typically 7-10 days to order a home inspection covering the roof, foundation, plumbing, electrical, HVAC, and major systems, with repair cost estimates.
If major issues surface, renegotiate the price, ask the seller to make repairs, or back out using your inspection contingency.
Meanwhile, the lender orders an appraisal.
Underwriting is the lender's final review, re-verifying income, assets, employment, and credit. It typically takes 3-5 business days.
Step 8: Final Walk-Through and Closing
Before closing, do a final walk-through: verify agreed-upon repairs, confirm the seller removed their belongings, and check that utilities are on so you can test everything.
At closing, you'll sign documents and transfer funds. Review the closing disclosure carefully, it shows all loan terms and costs, and sign the mortgage note and deed of trust.
The title company verifies the seller owns the property and there are no liens, collects your down payment and closing costs, and distributes funds to the seller, lender, and other parties.
Determine Your First-Time Home Buyer Budget
Your first-time home buyer budget isn't just the purchase price, it's the total cost of homeownership.
Start with income.
On $5,000 gross monthly income, maximum total debt payment is about $2,150.
That's just the mortgage. Budget for property taxes, homeowners insurance, and mortgage insurance (if under 20% down), often 25-50% of the mortgage payment.
Closing costs typically run 2-5% of the purchase price, $6,000-$15,000 on a $300,000 home, covering origination, appraisal, title insurance, attorney fees, and more (Determine your down payment).
Finally, budget for maintenance and repairs: set aside 1% of home value annually, $3,000 per year, or $250 per month, on a $300,000 home.
Questions to Ask When Buying a House
Before committing to a purchase, ask these questions to avoid costly mistakes.
What's the condition of major systems? Ask the age of the roof, HVAC, and water heater.
Are there HOA fees? Ask about monthly fees, what they cover, and past increases.
What utilities are available? Confirm access to water, sewer, gas, and electricity.
Has the home been flooded? Ask directly and check flood maps.
Save for Down Payment, Closing Costs, and Cash to Close
Your down payment is the money you put toward the purchase; the rest is financed.
Conventional loans typically require 3% down, FHA 3.5%, and VA (military) 0%.
Calculate your total cash needed:
- Down payment (3-20% of purchase price)
- Closing costs (2-5% of purchase price)
- Earnest money deposit (1-3% of purchase price, typically credited toward down payment)
On a $300,000 home with 5% down:
- Down payment: $15,000
- Closing costs: $9,000 (3%)
- Earnest money: $4,500 (1.5%, credited toward down payment)
Start saving now: open a dedicated account, set up automatic transfers, and cut expenses. Every dollar saved reduces what you borrow.
Some first-time homebuyers qualify for down payment assistance, grants or low-interest loans that vary by state and locality.
Understand Mortgage Options and Loan Types
Mortgage options fall into two categories: conventional and government-backed loans.
Conventional loans aren't government-backed.
USDA loans cover rural areas for moderate-income borrowers with 0% down and no mortgage insurance.
Within each loan type, choose between fixed-rate and adjustable-rate mortgages.
Fixed-rate mortgages keep the same interest rate for the entire term, so your monthly payment never changes.
You'll also choose a loan term.
New Homeowner Checklist After Closing
Congratulations, you're a homeowner. The first few weeks are critical.
Change the locks. You don't know how many copies of the previous owner's keys exist.
Meet your neighbors. Introduce yourself and ask about the neighborhood, community center, trash collection day, and any rules.
Create a maintenance schedule. Schedule annual HVAC maintenance, roof inspections, and gutter cleaning, prevention saves money long-term.
Common Mistakes First-Time Buyers Make
First-time homebuyers make predictable mistakes. Knowing them helps you avoid them.
Mistake 1: Borrowing the maximum. Qualifying for a $400,000 mortgage doesn't mean taking it.
Mistake 3: Changing jobs before closing. Lenders verify employment; a job change can delay closing or require extra documentation.
Mistake 4: Ignoring the inspection report. Get repair estimates and renegotiate the price or ask the seller to fix issues.
Buying your first home is one of the biggest financial decisions you'll make. Whether you're a military family relocating, moving from out of state, or a first-time buyer in your local market, our team is ready to support you from your first question through closing day. Contact Shawana Boyer for personalized guidance on your home purchase and let's get you into your first home with confidence and peace of mind.
Frequently Asked Questions
What salary do you need to afford a $400,000 house?
Most lenders use a debt-to-income ratio of 43%, meaning your total monthly debt payments (including the new mortgage) should not exceed 43% of your gross monthly income. For a $400,000 home with a 20% down payment, property taxes, homeowners insurance, and mortgage insurance factored in, you'd typically need a household income of around $100,000 to $120,000 annually. However, this varies based on interest rates, loan term, and your existing debts. Get pre-approved to see your exact qualifying amount.
How much money should a first-time home buyer save before buying?
Plan to save for three main costs: down payment (typically 3-20% of the home price), closing costs (2-5% of the loan amount), and cash reserves. Most lenders want to see 2-6 months of mortgage payments in savings after closing. For a $300,000 home with a 10% down payment and 3% closing costs, you'd need roughly $30,000 down plus $9,000 in closing costs, plus emergency reserves. First-time buyer programs may lower down payment requirements to 3-5%.
What should I do before applying for a mortgage?
Before applying, check your credit score and get a free copy of your credit report. Pay down existing debt to improve your debt-to-income ratio. Gather financial documents including recent pay stubs, W-2s from the past two years, bank statements, and proof of assets. Avoid opening new credit accounts or making large purchases, as these can hurt your credit and debt ratios. Review your budget to confirm how much home you can truly afford, not just what lenders will approve.
What are the first things I should do after closing on a house?
Immediately change the locks or rekey them for security. Set up utility accounts in your name and schedule transfer dates. Review the closing disclosure for accuracy and file it safely with your mortgage documents. Contact your homeowners insurance provider to activate coverage. Update your address with the post office, banks, and employers. Schedule a home inspection with a professional if you haven't already, and create a maintenance log. Set aside funds for emergency repairs and establish a home maintenance budget.
What should I check during a home inspection?
Work with a professional home inspector to examine the roof, foundation, plumbing, electrical systems, HVAC, and appliances. Check for water damage, mold, pest damage, and structural issues. Test all windows and doors, verify proper grading around the foundation, and inspect the attic and basement. Ask the inspector about the age and condition of major systems like the water heater and air conditioning unit. Request a detailed written report and ask questions about any concerns before closing. Never skip the inspection, even if the seller pressures you.
What costs should I expect at closing?
Closing costs typically range from 2-5% of your loan amount and include loan origination fees, appraisal fees, title search and insurance, homeowners insurance, property taxes, and recording fees. You may also pay for home inspection, survey, attorney fees, and HOA fees if applicable. Ask your lender for a Loan Estimate within three days of applying; it details all expected costs. Review the Closing Disclosure at least three days before closing to confirm all figures match. Request a cash-to-close worksheet from your real estate agent to know exactly how much to bring to closing.
What's the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage locks your interest rate for the entire loan term (typically 15 or 30 years), so your monthly payment stays the same. An adjustable-rate mortgage (ARM) starts with a lower initial rate that adjusts after a set period, usually causing payments to increase. Fixed-rate mortgages offer predictability and stability, making them ideal for first-time buyers planning to stay long-term. ARMs can be risky if rates spike, but may work if you plan to sell or refinance before the rate adjusts. Compare both options with your lender to see which fits your timeline and financial situation.
