Your first-home checklist: 12 steps before you buy

Buying your first home comes down to 12 steps: check your credit, set your budget, save your down payment and closing costs, get pre-approved, find an agent, tour homes strategically, make a strong offer, order the inspection, secure your loan, review the closing disclosure, do the final walkthrough, and close. Work the list in order and nothing catches you off guard.

Here is each step in detail, with the mistakes first-time buyers most often make — and how to avoid them.

The 12-step first-home checklist

1. Check your credit reportPull free reports from all three bureaus at AnnualCreditReport.com. Dispute errors — even one wrong late payment can move your score and your rate.
2. Set a realistic monthly budgetA common rule keeps total housing costs under 28% of gross income, but budget from your own bank statements, not a formula. Include taxes, insurance, HOA dues, and maintenance — not just the mortgage payment.
3. Save the down payment plus closing costsTarget 20% to skip mortgage insurance, or 3–3.5% for FHA and many conventional programs. Then add 2–5% of the price for closing costs, plus a moving and repair cushion.
4. Explore first-time buyer programsMany states and cities offer down payment assistance, grants, or reduced rates for first-time buyers. Requirements vary, but "first-time" often just means you have not owned in three years.
5. Get pre-approved, not just pre-qualifiedPre-approval means a lender verified your income, assets, and credit. It sets your true budget and makes your offers credible. Compare at least two or three lenders — rates and fees vary more than most buyers expect.
6. Find a buyer's agentA good agent costs you nothing (the seller typically pays the commission) and protects your interests in negotiation. Interview two or three; ask how many first-time buyers they have guided in the last year.
7. Tour homes with a scorecardAfter three or four homes they blur together. Rate each on condition, layout, location, and cost-to-fix before you leave the driveway. Our guide on what to look for at an open house gives you a printable list.
8. Make a data-backed offerYour agent should show comparable sales from the last 90 days. In a slow market, negotiate; in a competitive one, a clean offer with a solid pre-approval letter often beats a higher, shakier one.
9. Never skip the home inspectionIt costs a few hundred dollars and routinely surfaces thousands in needed repairs. Use the report to negotiate credits or repairs — or to walk away before the money is gone.
10. Lock your loan and avoid new creditBetween pre-approval and closing, do not open credit cards, finance furniture, or change jobs. New debt can kill an approval days before closing.
11. Review the closing disclosure carefullyYou receive it three business days before closing. Compare every fee against your loan estimate. Question anything that moved.
12. Final walkthrough and closing dayWalk through the home the day before or morning of closing to confirm agreed repairs were done and the home is in the expected condition. Then sign, get the keys, and change the locks.

How long does all of this take?

Most first-time buyers need 6 to 12 months from starting their financial prep to closing day. The tighter your credit and savings are at step one, the shorter the timeline. The purchase itself — accepted offer to keys — typically runs 30 to 45 days under contract.

The three mistakes that cost first-time buyers the most

• Shopping before pre-approval. Falling in love with a $380,000 home when you qualify for $310,000 wastes months and heartbreak. Pre-approval comes first, always.
• Budgeting only the mortgage payment. Property taxes, insurance, HOA dues, and maintenance routinely add 30–40% on top of principal and interest. Budget the full number.
• Draining every dollar for the down payment. Going in with zero reserves means the first furnace failure goes on a credit card. Keep an emergency fund intact.