A Checklist for First-Time Homebuyers

Financing

Determine how much you can afford. Review your budget to calculate how much you can afford to pay monthly for your home. Your monthly mortgage payment will typically include your principal and interest payment along with your escrow payment (includes expenses like property taxes and insurance that are collected monthly and paid by your lender). In addition to your mortgage payment, you'll want to consider monthly HOA fees, water, sewage, electricity, and trash pickup.

There are also one-time expenses associated with purchasing a home that you'll need to have saved up. One-time expenses include down payment requirements, closing costs, and moving expenses. If you haven't started saving yet, take a look at your budget to determine how much you can set aside each week or month to save for these expenses. If you need help setting up a budget, we've put together some budgeting tips that make creating a budget easier.

After you determine your budget, you should start researching financing options. Compare rates and mortgage products from different lenders. Once you've decided on a lender and are ready to apply for a mortgage, be sure to request a pre-approval letter as your real estate agent may request one before you start house hunting. Plus, a pre-approval letter may be more enticing to a seller by showing that you're a serious buyer. 

It's also a good idea to gather the documents and information you'll need for your mortgage application. This includes your most recent pay stubs, past two years tax returns and W-2s, identification, bank statements, rental information, and any other required documents to help streamline the loan application process.

House Hunting

Now for the fun part - it's time to go house hunting! Start by determining your needs. Consider what you're looking for in a home, such as the neighborhood, size, style, school district, and price range. Next, you can create your "want" list: walk-in closets, garage, or a formal dining room.

Find and secure a reliable real estate agent. Getting referrals from friends, family, and lenders can help you find a reputable agent to guide you through the home-buying process.

Purchasing & Closing

When you find a home you love, make an offer that stands out from other buyers. Consider sending a heartfelt letter to the seller expressing why you're the perfect fit for their home.

Once your offer is accepted on a home, your lender will need a copy of your signed contract so they can finalize your mortgage application, help you secure an appraiser for the home, and complete other necessary steps for a successful loan closing. Your real estate agent will help you schedule the home inspections. You will also need to choose an attorney to use for the mortgage closing and select an insurance company to insure the property. 

The final step is closing on your new home. Once everything is in order, you'll meet with your selected attorney to review and sign the necessary documents and receive the keys to your new home. 

If you're thinking about purchasing a new home, our team is here to help guide your through the process. You can also download our Homebuyer's Checklist to help stay organized.