Purchasing your first home is a huge milestone but it can also be incredibly overwhelming. As you make your way through the home-buying process, use this checklist to make sure you’re not forgetting anything vital. Familiarize yourself with the home-buying process so that you can keep yourself on track and enjoy your new home.

Assess Your Financial Situation

Check Your Credit Score : A good credit score (usually 620 and above) will help you qualify for better mortgage rates.

Determine Your Budget : Understand what you can afford based on your income, savings, and expenses. Use a mortgage calculator to estimate monthly payments.

Save for a Down Payment : Most conventional loans require a down payment of at least 3-20% of the home’s price, but FHA loans may require as little as 3.5%.

Budget for Closing Costs : Closing costs can range from 2% to 5% of the home’s price. This includes fees for inspections, appraisals, and legal services.

Establish an Emergency Fund : Ensure you have a cushion for unforeseen expenses after moving in.

Identify Your Needs and Wants

Location : Consider factors such as school districts, commute times, neighborhood safety, and access to amenities.

Home Size and Features : Decide on the number of bedrooms, bathrooms, and other must-have features (e.g., a yard, garage, or home office).

Type of Home : Choose between single-family homes, townhouses, condos, or co-ops.

Get Pre-Approved for A Mortgage

Shop for Lenders : Compare offers from different lenders to get the best mortgage rates and terms.

Get Pre-Approval : A pre-approval letter shows sellers that you are a serious buyer and helps define your home search budget.

Start House Hunting

Attend Open Houses or Virtual Tours : This helps you narrow down your options and compare properties.

Compare Listings : Make a list of pros and cons for each home you visit.

Think Long-Term : Consider how your needs might change in the future (e.g., growing family, job changes).

Make an Offer

Review Comparable Sales : Your agent can help you understand what similar homes in the area have sold for.

Make a Competitive Offer : Submit an offer that reflects the current market while staying within your budget.

Negotiate if Necessary : Be prepared for counter offers from the seller.

Home Inspection and Appraisal

Schedule a Home Inspection : Hire a professional to inspect the home for any potential issues like roofing, plumbing, or foundation problems.

Get a Home Appraisal : Your lender will require an appraisal to ensure the home is worth the amount you are borrowing.

Finalize The Mortgage

Lock in Your Interest Rate : Once your offer is accepted, work with your lender to lock in your mortgage rate.

Review Loan Estimate : Ensure you understand the terms, including the interest rate, monthly payments, and closing costs.

Closing Process

Review Closing Disclosure : This document provides a final summary of your mortgage terms and closing costs.

Conduct a Final Walkthrough : Before closing, inspect the property one last time to ensure it’s in the agreed-upon condition.

Sign the Paperwork : You’ll sign all necessary documents and pay any outstanding fees at closing.

Move In!

Get Home Insurance : Secure a homeowners insurance policy to protect your investment.

Set Up Utilities : Contact local utility companies to transfer services like electricity, water, gas, and internet.

Enjoy Your New Home : Once everything is in order, you can start moving in and enjoy your new space!

The First-Time Homebuyer’s Checklist by Aiden Lowrie | zoocasa