A First-Time Home Buyer's Checklist

Before you look at a single listing

The most common first-time buyer mistake is falling for a house before understanding the numbers. Start with a monthly budget that includes more than the mortgage payment: property taxes, homeowners insurance, any homeowners association dues, utilities, and a reserve for repairs. A common rule of thumb is to set aside one to two percent of the home's value each year for maintenance.

Pull your own credit reports from all three bureaus and correct any errors. Gather two years of tax returns, recent pay stubs and bank statements. Having these ready shortens every later step.

Decide what actually matters

Write two lists: requirements and preferences. Requirements are the things you would walk away over, such as the number of bedrooms, a commute limit, or a school boundary. Preferences are nice to have. Being honest about the difference keeps you from overpaying for features you did not need.

• Commute time at the hours you actually travel
• Age of the roof, heating and cooling systems, and water heater
• Flood zone status and insurance implications
• Whether the lot and layout fit how you live, not just how it photographs

Making an offer

An offer is more than a price. It includes an earnest money deposit, a closing date, and contingencies that let you back out under specific conditions, most commonly inspection, appraisal and financing. Removing contingencies makes an offer more attractive to a seller but shifts risk to you. Understand exactly what you are giving up before you do it.

Ask for the seller's disclosures and read them completely. In most states sellers must disclose known material defects, past water intrusion, and similar issues.

Between contract and closing

Schedule the inspection immediately; the contingency window is short. Review the inspection report with someone who can explain which items are routine and which are expensive. Then decide whether to request repairs, a credit, or to proceed as-is.

Avoid opening new credit accounts, changing jobs, or moving large sums between accounts during this period. Your financing is re-verified before closing.

A few days before closing you will receive a settlement statement listing every charge. Compare it line by line with the estimate you received earlier and ask about anything that changed.

Closing day and after

Do a final walkthrough within 24 hours of closing to confirm the property is in the agreed condition and that included items are still there. Bring identification and confirm wiring instructions by phone with a known number before sending any funds; wire fraud targeting home buyers is common.

After closing, set up a maintenance calendar, locate the main water shutoff, and keep every document from the transaction in one place.