Key takeaways:
- Get your finances in order early to know what you can afford.
- Find the right team – a great agent and lender make all the difference.
- Stay organized from preapproval to closing to make the process smoother.
You’ve been scrolling listings for weeks, maybe a craftsman-style home in Seattle, WA or a sunny condo in Nashville, TN. Exciting, but overwhelming too. Between preapproval, inspections, and closing paperwork, it’s easy to lose track of what comes next. That’s where a home buying checklist helps. It keeps you organized through every stage of the homebuying process, from finances to keys in hand. This checklist walks you through clear actions and first-time homebuyer tips to make the process smoother and less stressful.
1. Know how much house you can afford
Before you start touring homes, get a clear sense of what you can comfortably afford. Calculate your debt-to-income ratio (DTI) by comparing your total monthly debt payments to your gross monthly income. This gives you a realistic picture of how much you can take on. A lower DTI generally makes it easier to qualify for a mortgage and manage monthly payments. Use a mortgage affordability calculator to estimate a target price range that fits your budget so you can narrow your search and avoid falling in love with homes outside your means.
Don’t forget: Consider future monthly expenses (utilities, maintenance, and HOA dues) to ensure your budget stays realistic beyond the mortgage payment.
2. Save for a down payment
Your down payment impacts how much you’ll need to borrow and what loan options you can access. While some loan programs allow as little as 3%–10% down (and certain programs may allow zero down), a larger down payment can reduce your loan amount and monthly payments. It can also help you build equity faster and potentially avoid private mortgage insurance (PMI). Create a dedicated savings plan by setting a target amount, timeline, and monthly savings goal so you can steadily work toward homeownership.
Reminder: Explore local and state down payment assistance programs – many offer grants or favorable loans that can help first-time homebuyers reduce upfront costs.
3. Improve your credit score
Your credit score plays a key role in qualifying for a mortgage and can influence your interest rate and loan terms. Before applying for preapproval, review your credit report for errors, pay down high-interest balances, and make consistent on-time payments. Lenders typically look for a strong track record of responsible credit use, and healthier credit can make borrowing more affordable in the long run.
Simple habits that help boost your score:
- Pay all bills on time
- Reduce credit card balances
- Avoid opening new credit accounts during the mortgage process
4. Find a real estate agent you trust
Working with the right real estate agent can make your homebuying process smoother, faster, and far less stressful. A trusted buyer’s agent offers local market expertise, helps you determine if a listing is priced fairly, guides you through home inspections and negotiations, and explains each step leading to closing.
Look for an agent who listens to your goals, communicates clearly, and understands your timeline and budget. Ask for referrals from friends and family or explore online reviews to find someone with strong local experience..
5. Get pre-approved for a home loan
Getting pre-approved early in your home search helps you understand how much you can borrow and shows sellers you’re a serious, qualified buyer. A pre-approval provides a verified loan amount based on your financial information, giving you a clear budget and helping your offer stand out in competitive situations. You’re not locked into a lender at this stage; many buyers get pre-approved with multiple lenders to compare rates, fees, and loan programs before choosing one.
How to approach pre-approval:
- Compare multiple lenders: Review interest rates, fees, and available loan programs such as FHA, VA, and conventional loans.
- Understand your options: Ask how different down payment amounts, credit profiles, or loan terms may affect your rate and monthly payment.
- Pay attention to service: Choose a lender who communicates clearly and can explain the process in simple terms.
6. Research the area and neighborhoods you’d like to live in
Choosing the right neighborhood is just as important as finding the right home. As part of your homebuying checklist, take time to explore different areas and communities to see which best fit your lifestyle and long-term goals.
Here are a few ways to narrow your search:
- Research local amenities: Look for schools, grocery stores, parks, hospitals, and public transit options.
- Check commute times: Test-drive routes during rush hour to understand daily travel patterns.
- Visit at different times: Explore the area on weekdays, weekends, and evenings to get a true sense of activity and noise levels.
- Explore local trends: Check for new developments or future zoning changes that could affect home values.
Pro tip: Spend a weekend driving through your top three areas to get a true feel for each one before committing to tours.
7. Make a list of must-haves (and nice-to-haves)
Once you’ve found a few areas you love, it’s time to define your home priorities. This keeps your search focused and helps your agent tailor recommendations.
Start with the basics:
- Home type: Decide whether you want a single-family home, townhouse, or condo.
- Style preference: Think about architectural styles, whether you’re drawn to Mid-Century Modern, Victorian, or newer contemporary designs.
- Size and layout: Think about how much space you really need – the number of bedrooms, bathrooms, and whether a home office or flex room is a must-have.
- Lifestyle features: Outdoor area, garage, updated kitchen, or walkable location.
Then, list your “nice-to-haves” – things you’d love but can live without, like a pool or finished basement. Being clear about what matters most helps you make quicker, more confident decisions when you find a home that checks your top boxes.
8. Start touring homes
One of the most exciting parts of the homebuying process is attending open houses and home tours. Touring helps you see what’s available in your price range, explore layouts, and compare features firsthand.
During each tour, take photos and notes so you can remember the details later. Ask your agent for insights about the home’s condition and value, and don’t hesitate to ask about anything that looks off – like cracks, leaks, or odors.
Visit homes in your preferred neighborhoods when possible, but also tour nearby areas to broaden your perspective. If you’re relocating or short on time, take advantage of virtual home tours to evaluate properties from anywhere.
9. Make an offer
Once you’ve found “the one,” it’s time to make an offer. Your agent will help you determine a fair offer price based on comparable home sales and local market conditions.
Your offer will include:
- The price you’re willing to pay.
- Contingencies (like financing or inspection).
- Your preferred closing date.
- An earnest money deposit, typically 1–3% of the purchase price, showing you’re serious.
Your agent will submit your offer to the seller, and from there, they may accept, reject, or counter. If they counter, your agent will guide you through the next steps, whether that’s adjusting terms or moving on to another home.
10. Negotiate
During negotiations, an excellent real estate agent demonstrates real value to help buyers and sellers strike a deal. Your real estate agent can help you determine what to include in the offer. They can also help guide how you should respond to a counter-offer when the seller didn’t agree to your first offer but didn’t reject it outright. They may counter some or all of the requests in your offer. You can determine whether you can go along with the counter-offer items and if you’ll counter back. For more tips on navigating negotiations, here’s a helpful article on how much you can negotiate on a house.
11. Schedule a home inspection
Once your offer is accepted, your real estate agent can help you hire a licensed home inspector to evaluate the property for hidden issues or major repairs that could impact your investment. While inspections aren’t required by lenders, they’re essential for understanding the home’s condition before moving forward confidently.
During a home inspection, the inspector checks the home’s structure, plumbing, electrical systems, roof, HVAC, and foundation to ensure everything is safe and up to code. Nearly every inspection uncovers at least minor issues, but certain red flags can signal bigger repair costs:
- Roof: Look for damaged or missing shingles.
- Windows: Check for fog, moisture, or broken seals.
- HVAC and furnace: Confirm the systems work properly and aren’t over 15 years old.
- Water heater: Inspect for rust, leaks, or age over 10 years.
- Flooring and paint: Assess wear, damage, or signs of water intrusion.
Use the inspection report to understand upcoming maintenance needs and negotiate repairs or credits before closing. Even if some imperfections exist, knowing the home’s true condition helps you make an informed decision.
12. Get a home appraisal
After the home inspection, your lender will order a home appraisal to confirm the property’s fair market value before finalizing your mortgage loan. The appraiser evaluates the home’s condition, location, size, and features, then compares it to recent comparable home sales (or “comps”) in the area to determine an estimated value.
This step in the home buying checklist ensures the home is worth what you’ve agreed to pay and protects both you and your lender from overpaying. If the appraised value matches or exceeds your offer, your financing can move forward smoothly. However, if the appraisal comes in lower than the offer price, you may need to renegotiate with the seller, increase your down payment, or appeal the valuation.
13. Finalize your mortgage loan
Once the appraisal is complete and any required conditions are met, your lender will move your loan into final underwriting. During this stage, the lender reviews your financial documents one more time to confirm nothing has changed and that you still qualify for the loan. You may be asked to provide updated bank statements, pay stubs, or documentation to clear last-minute conditions.
After your loan is fully approved, you’ll receive a Closing Disclosure, which outlines your final loan terms and closing costs. Review it carefully. Lenders are required to send it at least three days before closing so you have time to ask questions and ensure everything looks accurate.
14. Work with a title company
After your offer is accepted, the title company conducts a title search, a review of public records to confirm the home’s legal ownership and uncover any liens, claims, or easements that could affect the transfer.
Once the search is complete, the title company issues a title report and helps arrange title insurance, which protects both you and your lender from potential ownership disputes in the future. Lenders typically require this coverage for both purchase and refinance transactions.
Pro tip: Review your title report carefully and ask questions about anything unclear. Addressing issues early helps prevent last-minute surprises and ensures a smooth closing when you officially take ownership of your new home.
15. Close on the home and wrap up the home buying checklist
At closing, you’ll sign final documents, pay any remaining costs, and officially transfer ownership from the seller to you. The title company or real estate attorney will handle the paperwork, verify funds, and record the property deed with the county, confirming you as the legal homeowner.
Once everything is signed and the deed is recorded, you’ll receive your keys and officially complete your home buying checklist. It’s a big milestone, one that turns all your planning, saving, and searching into the moment you can finally call your new house home.
Optional: Consider having a real estate attorney review your closing documents.
In some states, a real estate attorney is required at closing (such as New York and several East Coast states). Even when not mandated, some buyers choose to have an attorney review their purchase agreement or closing paperwork for added peace of mind.