First-Time Homebuyer Checklist: What to Do Before You Buy a Home

Buying your first home is exciting but it can also be overwhelming without a clear plan. Whether you're looking in a big city or a small town, this first-time homebuyer checklist from the Velocity Team breaks down each stage so you can move forward with confidence and clarity.

1. Understand Your Financial Picture

Start by taking an honest look at your finances. This helps you figure out how much home you can comfortably afford.

• Check your credit score and review your credit report

• Calculate your monthly income, expenses, and debt

• Set a savings goal for your down payment and closing costs

• Build an emergency buffer for moving costs or unexpected expenses

Tip: Many states and lenders offer down payment assistance programs specifically for first-time buyers.

2. Get Pre-Approved for a Mortgage

A mortgage pre-approval tells you what price range you should be shopping in and gives you a competitive edge with sellers.

• Gather documentation: tax returns, pay stubs, bank statements, etc.

• Contact a mortgage lender to start the application

• Receive a pre-approval letter showing your approved loan amount and rate estimate

3. Explore Your Loan Options

First-time buyers often qualify for loan programs that require less money down or offer more flexible credit guidelines:

• FHA Loan: Requires as little as 3.5% down and is more forgiving on credit

• Conventional Loan: Often best for those with stronger credit and higher income

• VA Loan: Zero-down loan for qualified veterans, active-duty members, and spouses

• USDA Loan: Zero-down loan for eligible rural and suburban homebuyers

• First-Time Buyer Grants: Many local and state programs offer grants or forgivable second mortgages

Not sure which loan works best for you? The Velocity Team can walk you through a custom comparison.

4. Find the Right Real Estate Agent

A knowledgeable buyer’s agent is your guide throughout the home search and negotiation process. Look for someone who:

• Knows your target area and housing market

• Has strong communication and negotiation skills

• Can explain the process clearly, step by step

5. Start Your Home Search

Use your pre-approval amount and personal needs to guide your search.

• Prioritize features like location, schools, square footage, and commute time

• Visit open houses or schedule showings

• Compare property taxes, HOA fees, and expected utility costs

Tip: Use a home search checklist to track pros and cons for each property.

6. Make an Offer and Negotiate

Once you’ve found the right home:

• Work with your agent to submit an offer

• Be prepared for negotiations around price, closing date, or repairs

• Once accepted, you’ll enter the contract and loan processing phase

7. Complete Inspections and Finalize Your Loan

As you move toward closing:

• Schedule a home inspection and appraisal

• Choose your homeowners insurance provider

• Work closely with your lender to satisfy any final documentation requirements

8. Close and Move In

At closing, you’ll sign your loan documents, pay any final costs, and receive your keys.

Congratulations you're now a homeowner!

Bonus: Common First-Time Buyer Questions

Q: Do I need 20% down to buy a home? No. Many loans offer 3–5% down options, and some even allow zero down.

Q: How long does the buying process take? It typically takes 30 to 45 days from accepted offer to closing.

Q: What’s included in a mortgage payment? Principal, interest, taxes, and insurance (often referred to as PITI).