First-Time Home Buyer Checklist: From Budget to Closing
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First-time home buyer readiness checklist
Tick off what you have settled before you make an offer, and what you still owe the process before closing. This is general information, not legal, tax or mortgage advice. Ticks are saved in this browser only.
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Know your numbers
Do this before you look at a single listing seriously.
CFPB's Loan Estimate explainer says to make sure you are comfortable spending the Estimated Total Monthly Payment on housing each month.
Source: CFPB, Loan Estimate explainer
The Loan Estimate shows an Estimated Cash to Close; you will need proof of where those funds came from.
Source: CFPB, Loan Estimate explainer
Fixing an error can take time, so find it early.
Line up the financing
Your lender, not this page, decides what it requires.
CFPB says the best way to tell whether an offer is competitive is to compare it with Loan Estimates from other lenders.
Source: CFPB, Loan Estimate explainer
CFPB notes that lenders itemize differently, and that it is the total that matters.
Source: CFPB, Loan Estimate explainer
Source: CFPB, Loan Estimate explainer
Source: CFPB, Loan Estimate explainer
CFPB calls the first two risky and says an adjustable rate can change after closing.
Source: CFPB, Loan Estimate explainer
Find a home and make an offer
It keeps one showing from rewriting your whole plan.
Offer terms are contract terms. Rules and customs differ by state.
Inspection and appraisal
CFPB says an independent, professional appraiser conducts it and that you have a right to receive a copy.
Source: CFPB, Loan Estimate explainer
CFPB says the premium is set by the insurer, not the lender, and you usually pay the first months of premiums at or before closing.
Source: CFPB, Loan Estimate explainer
Closing Disclosure and closing day
CFPB says lenders are required to provide it then, and that those days are the time to resolve problems.
CFPB says to ask the lender why if any of these look different.
CFPB says you will typically need a cashier's check or wire transfer, and the closing agent may be called a settlement agent, escrow agent or closing attorney where you live.
Sources (2)
- CFPB, Loan Estimate explainer consumerfinance.gov
- CFPB, Closing Disclosure explainer consumerfinance.gov
In short: Settle your budget and financing first, compare Loan Estimates from more than one lender, treat the inspection and appraisal as separate jobs, and check your Closing Disclosure against your latest Loan Estimate before you sign.
This list is for someone buying a first home who wants to know, at any point, whether they are ready for the next step. It is organized by what you should have settled, not by dates, so you can open it on day one or in the middle of a contract and see what is still open. If you would rather follow the order of events, the home buying timeline lays out the same journey as stages.
Nothing here is legal, tax or mortgage advice. Your lender decides what it needs from you and what loan it will offer. A real estate attorney can explain what a contract means where you live, and a licensed inspector tells you what is wrong with a particular house.
How to use the list
Work through the sections in order the first time, then come back and tick items as they happen. The first two sections are about money, and they come first on purpose: a price range you chose before falling for a house is easier to hold than one you invented afterward. The urgent flags mark the items where a missed step is hardest to undo, such as reading contract deadlines or checking your closing paperwork in the days you have to do it.
If you want arithmetic to go with the budgeting items, Calcimator has a home affordability calculator that does the sums; this page does not try to.
Worked example: two lenders, one afternoon
Say you have a house in mind and two lenders have each sent a Loan Estimate for the same kind of loan. Start with the basics CFPB tells you to verify: your name is spelled correctly, the loan amount plus your down payment equals the sale price, and the term and loan type match what you discussed. Then compare the upfront charges. CFPB says to compare the origination charges across estimates and to look at the total, since lenders itemize differently. Do the same for the services you cannot shop for. Finally, look at the estimated cash to close on each, and ask yourself whether you could actually bring that amount.
If one estimate shows points or lender credits and the other does not, ask both lenders how the choice changes the interest rate and the total cost of the loan. CFPB suggests exactly that question. Write the answers next to each form and tick the items on the list as you go.
What the result means
A full set of ticks does not mean the purchase is a good idea. It means the steps most likely to catch a surprise have been done. The checklist cannot judge a neighborhood, a house or a price. It can make sure you have looked at the loan terms, asked about risky features such as a prepayment penalty or balloon payment, and know what you are agreeing to.
What changes the list
Your loan type, your state and your contract all change the details. Some contracts give you a short window for the inspection; some places use a closing attorney and others an escrow or settlement agent. Treat each item as a prompt to ask, and let the paper in your hands answer.
When to ask for help
Ask your lender about anything on a Loan Estimate or Closing Disclosure that looks different from what you were told. Ask a real estate attorney before you sign or change a contract term, and especially before you agree to waive a protection. Ask a licensed inspector which findings need a specialist.
Questions people ask
How many Loan Estimates should I get?
CFPB says to request them from different lenders and compare, but it does not set a number. Ask for estimates for the same kind of loan so the comparison means something.
Is the appraisal the same as an inspection?
No. CFPB describes the appraisal as the lender's way of deciding how much the home is worth, done by an independent appraiser. An inspection looks at the condition of the house, and you hire the inspector for yourself.
When do I see my Closing Disclosure?
CFPB says lenders are required to provide it three business days before your scheduled closing. Read the closing disclosure guide when it arrives, and see the loan estimate guide for the earlier form. The last stop is the final walk-through.
Sources
- CFPB, Loan Estimate explainer consumerfinance.gov
- CFPB, Closing Disclosure explainer consumerfinance.gov