Buying your first home is one of the biggest financial decisions you’ll ever make. Exciting? Absolutely. Overwhelming? Sometimes. Between figuring out your budget, understanding mortgage terms, and preparing all the paperwork, it’s easy to feel lost.
That’s why we’ve put together this step-by-step first-time homebuyer checklist—so you’ll know exactly what to prepare before applying for a mortgage.
✅ 1. Check Your Credit Score
Your credit score is one of the first things lenders look at. It helps them decide how risky it is to lend you money.
- Why it matters: A higher score usually means better loan options and lower interest rates.
- Tip: Aim for a score of at least 620 for conventional loans, though FHA loans may accept lower.
📌 Action: Get a free copy of your credit report and correct any errors before applying.
Before you fall in love with that dream home, know how much you can realistically afford.
- General rule: Your monthly housing costs (mortgage, taxes, insurance) should stay below 28–30% of your gross monthly income.
- Don’t forget: Closing costs, moving expenses, and emergency savings.
📌 Action: Use an online mortgage calculator to estimate payments.
✅ 3. Save for a Down Payment
Your down payment impacts your mortgage terms.
- Conventional loans: Typically require 3–20% down.
- FHA loans: May allow as little as 3.5% down.
- 20% down: Lets you avoid private mortgage insurance (PMI).
📌 Action: Set up a separate savings account for your home fund.
✅ 4. Gather Financial Documents
Lenders want proof of your financial stability. Be prepared to provide:
- Recent pay stubs
- Tax returns (last 2 years)
- W-2s or 1099s
- Bank statements
- Proof of additional assets or income
📌 Action: Keep a digital folder so everything is ready when applying.
✅ 5. Understand Your Loan Options
Not all mortgages are the same. Common types include:
- Conventional Loans – Good for buyers with strong credit and stable income.
- FHA Loans – Easier to qualify for, lower down payments.
- VA Loans – For veterans and military families, with no down payment required.
- USDA Loans – For rural and suburban homebuyers, with low or no down payment.
📌 Action: Research loan programs to see which one fits your situation best.
✅ 6. Get Pre-Approved, Not Just Pre-Qualified
- Pre-qualification: An estimate of what you might be able to borrow.
- Pre-approval: A conditional commitment from a lender based on verified financial documents.
Why it matters: Pre-approval makes your offers stronger and helps you know your true budget.
📌 Action: Shop around—don’t be afraid to get pre-approvals from multiple lenders.
✅ 7. Avoid New Debt
While preparing for a mortgage, keep your financial profile stable.
- Don’t open new credit cards.
- Avoid financing a car or big purchase.
- Pay bills on time.
📌 Action: Stay consistent until after you’ve closed on your home.
✅ 8. Build a Reliable Support Team
Buying a home isn’t a solo mission. Surround yourself with trusted experts:
- A real estate agent
- A mortgage lender or broker
- A home inspector
- A real estate attorney (in some states)
📌 Action: Start researching and asking for referrals early.
Final Thoughts
Becoming a homeowner is a big step—but preparation makes the process smoother and less stressful. By following this checklist, you’ll enter the mortgage application process with confidence and increase your chances of approval.
👉 Whether you’re months away from buying or ready to start today, the key is preparation. The more organized you are now, the faster you’ll be unlocking the door to your first home.