First-Time Homebuyer Checklist: Everything You Need Before You Apply
Buying your first home involves more steps than most buyers expect, but each one is manageable when you know what is coming. The process starts months before you make an offer with checking your credit, building your savings, gathering documents, and getting pre-approved. This checklist covers every step in order, with the specific actions to take at each stage.
Key facts
- Down payment
- 0% to 20% (program-dependent)
- Closing costs
- 2% to 5% of loan amount
- Pre-approval validity
- 60 to 90 days
- Typical timeline
- 30 to 45 days under contract
| Phase | Timing | Focus |
|---|---|---|
| 1. Financial foundation | 6 to 12 months out | Credit, debt, savings goal |
| 2. Research and save | 3 to 6 months out | Loan programs, down payment, documents |
| 3. Pre-approval | 1 to 2 weeks | Application, verification, letter |
| 4. House hunting | Varies | Agent, offers, stay in budget |
| 5. Under contract | 30 to 45 days | Inspection, appraisal, underwriting |
| 6. Closing day | 1 day | Final disclosure, wire, keys |
6 to 12 Months Before: Build Your Financial Foundation
The strongest pre-approvals start months before the application. Use this window to fix anything credit-related and to build savings without rushing.
- Pull your credit report at AnnualCreditReport.com (free, all three bureaus)
- Review your credit score and dispute any errors
- Pay down credit card balances below 30% utilization
- Avoid opening new credit accounts
- Calculate your debt-to-income ratio
- Determine your down payment savings goal
3 to 6 Months Before: Research and Save
This is the program research phase. Different loan programs have very different down payment, credit, and income requirements. Knowing which fits your situation saves time later.
- Research loan programs (FHA, VA, USDA, Conventional)
- Calculate how much home you can afford using the affordability calculator
- Build your down payment savings (VA and USDA: 0%, FHA: 3.5%, Conventional: 3%+)
- Save for closing costs (2% to 5% of the loan amount)
- Gather documents: W-2s, pay stubs, tax returns, bank statements, government ID
Getting Pre-Approved: Your Most Important Step
Pre-approval is the single step that turns a casual shopper into a real buyer. Sellers in most markets will not seriously consider an offer without a current pre-approval letter attached.
- Contact a loan officer and submit your application
- Provide all requested documents promptly
- Receive your pre-approval letter (valid 60 to 90 days)
- Understand exactly how much you are approved for and at what rate range
House Hunting: What to Know Before You Offer
The biggest mistakes in this phase are financial, not strategic. Anything that changes your debt, income, or assets between pre-approval and close can void the approval.
- Work with a real estate agent
- Stay within your pre-approved price range
- Do not make major financial changes (no new debt, no large purchases, no job changes)
- Make offers with your pre-approval letter attached
Under Contract: What Happens Next
Once your offer is accepted, the clock starts on a fixed timeline (usually 30 to 45 days) covering inspection, appraisal, underwriting, and closing. Responding quickly to lender requests is the single biggest factor in closing on time.
- Schedule a home inspection
- Respond to lender requests within 24 hours
- Review the Closing Disclosure 3 days before closing
- Confirm final cash-to-close amount
- Wire funds only after confirming instructions directly with the title company by phone
Closing Day: What to Expect
Closing typically takes 30 to 60 minutes at a title or attorney's office. Bring a government-issued ID, the cashier's check or wire confirmation for cash-to-close, and any documents the lender requested in the final week.
You will sign the promissory note, deed of trust or mortgage, Closing Disclosure, and a stack of additional disclosures. After signing and funding, the deed is recorded and the keys are yours.
Video guide
Video companion coming soon. The video will mirror this guide step by step and answer the title question in the first 20 seconds.
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Helpful next steps
Frequently asked
What do first-time homebuyers need to qualify?
A documentable income history (typically 2 years), a credit score that meets your loan program's minimum, a debt-to-income ratio within program limits, enough cash for down payment and closing costs, and government-issued ID. Specific minimums vary by program.
How much money do I need to buy my first home?
Plan for the down payment plus 2% to 5% of the loan amount in closing costs. On a $400,000 home with a 5% down payment, that is roughly $20,000 down plus $8,000 to $20,000 in closing costs. VA and USDA require no down payment.
What credit score do I need as a first-time homebuyer?
FHA accepts 580 with 3.5% down or 500 with 10% down. VA has no published minimum but most lenders require 580 to 620. Conventional loans typically require 620. Higher scores qualify for better rates and lower mortgage insurance.
How long does it take to buy a house as a first-time buyer?
From the start of the application to closing, plan on 30 to 45 days once you are under contract. The full process (credit prep, savings, pre-approval, house hunting, closing) typically takes 6 to 12 months for first-time buyers.
What programs are available for first-time homebuyers?
FHA (3.5% down, 580 credit), VA (0% down for eligible veterans), USDA (0% down in eligible rural areas), Conventional 97 (3% down), and various state and local down payment assistance programs. A loan officer can match you to the best fit.
Loan program requirements, credit minimums, and timelines are typical industry estimates and vary by lender, program, and borrower. Not a commitment to lend. Encompass Lending Group, LP NMLS #292897. Equal Housing Opportunity.
