First Home Buyer Checklist
The complete step-by-step checklist for buying your first home. From credit preparation to closing day, track every milestone of the home buying journey.
Buying your first home is one of life's biggest milestones—and biggest financial decisions. The average first-time buyer spends 6-12 months from initial search to closing day.
This comprehensive checklist guides you through every step, from building credit and saving for a down payment to closing day and beyond. Track your progress and never miss an important task.
🫙 The Down Payment Jar Strategy
Think of home buying as filling multiple jars simultaneously:
The Down Payment Jar: Your largest savings goal. 20% avoids PMI, but 3-5% is possible with some loans.
The Closing Costs Jar: Often forgotten! Plan for 2-5% of the purchase price.
The Emergency Jar: Don't drain all savings for the down payment. Keep 3-6 months of expenses separate.
The Moving/Furnishing Jar: The hidden costs after you get the keys.
How Much House Can You Really Afford?
The 28/36 Rule: Lenders typically want your housing costs under 28% of gross income and total debt under 36%.
But consider being more conservative: Just because you qualify for a $400k loan doesn't mean you should take it. Consider:
- Future expenses (kids, car replacement, job changes)
- Lifestyle priorities (travel, hobbies, savings goals)
- Hidden homeownership costs (maintenance, repairs, utilities)
A safer target: Many financial advisors suggest keeping housing under 25% of take-home pay, not gross income.
Understanding Loan Types
Conventional Loans: Best rates if you have 20% down and 700+ credit. PMI required below 20%.
FHA Loans: As little as 3.5% down with 580+ credit. Great for first-timers, but requires mortgage insurance.
VA Loans: 0% down for eligible veterans. No PMI. Often the best deal available.
USDA Loans: 0% down for rural and suburban areas. Income limits apply.
Jumbo Loans: For amounts above conventional limits ($766,550 in most areas for 2024). Stricter requirements.
Common First-Time Buyer Mistakes
Not getting pre-approved first: Sellers won't take you seriously without pre-approval. Get it before you start looking.
Skipping the home inspection: NEVER waive the inspection to win a bidding war. The $400-500 could save you tens of thousands.
Forgetting ongoing costs: Property taxes, insurance, HOA, maintenance—budget 1-2% of home value annually for repairs alone.
Making big purchases before closing: Don't buy furniture, a car, or make other big purchases until AFTER closing. It can derail your loan.
Draining all savings: Keep an emergency fund. Homeownership brings unexpected expenses.
Frequently Asked Questions
It depends on the loan type. Conventional loans require 3-20%, FHA requires 3.5%, and VA/USDA offer 0% down. But remember closing costs (2-5% additional) and don't forget your emergency fund. For a $300k home, budget $15k-75k for down payment plus $6k-15k for closing costs.