First-Time Home Buyer Checklist
Buying a home is a huge milestone in your life, and not to mention, one of the biggest purchases you’ll ever make. It’s kind of crazy that there’s not super transparent and clear action steps on how to navigate this process!
That’s why we created a handy checklist that will help you navigate buying your first property step-by-step. From the research phase to closing, the following information will be your security blanket through the entire process.
The buying process is a slightly different journey for everyone. A step that may take days for one person may take weeks for someone else, and that’s completely normal. Just make sure you’re taking actionable steps every week. Our checklist will keep you on the right track to own your first home ASAP, so let’s dive in.
First-Time Home Buyer Checklist
Step 1: Do Some Basic Research
This checklist will help you buy your first home with way less stress!
You’ve already started step one, potentially without realizing it: the research phase! Since you’re here, you’re clearly starting to prepare to buy a home, and that’s amazing! But this isn’t all it will take to buy a home. There are many more steps that will help you prepare to buy, and some will be based on your particular situation.
The following are great resources to check out if you’re a first time buyer just starting out:
First thing’s first: are you even ready to buy a house? This quiz will help you determine if the time is now or if you need a bit more time preparing. We’ll also give you next steps based on your results!
Yup, that’s right! We have a FREE mini course that will help you prepare to buy your first home. In these 3 short videos, we cover how much cash you need, buying with debt, and building up your credit score and more! You definitely want to take advantage of that one.
The Open House Podcast: Where Women Talk Real Estate is our incredible podcast that we are insanely proud of. Although there is some info in there for more seasoned buyers/investors, there is a lot that will help you get started! And just so you don’t have to sort through all our episodes, we created a blog post here that will show you the top 5 episodes if you’re looking to buy your first home.
Online Homebuyer Course: Homeschool
If you want the most comprehensive first time buyer education out there, there’s truly nothing better than Homeschool. This 6 week LIVE course will not only prepare you to buy your first home, but it will also teach you how to make that home an investment. Click here to join the waitlist to be alerted when the next cohort starts!
Step 2: Mindset Inventory
This is a journaling activity where you will really sit down and think about how you currently view real estate and homeownership. Don’t skip this step because it will help you start to really think about why you are making this huge decision in your life. It’s also important to help identify any fears or misconceptions you need to address!
Get out a notebook and give yourself some time to reflect on the following questions:
What does buying a house mean to you?
What excites you about buying a house? What scares you?
What are your biggest limiting beliefs around buying a house?
What is a good investment?
Feel free to share your responses with us! We love to see where people start off on their home buying journey. It truly is so fascinating to see the different responses. We hope this exercise gives a lot of insight on some of the beliefs you hold that may be holding you back!
step 3: Financial Inventory
The next step is the financial inventory. This is a crucial step to get some insight into your own financial situation before talking to a lender.
So it’s time to assess the following:
Credit score (learn how to raise your score here)
Cash you have saved for a house
Monthly debts (this does not include your rent)
W2 vs self-employed (we talk about why the difference is a big deal in our mini-course!)
These steps are crucial, especially before you move to the next step…
Step 4: Connect with a Lender to Get Your True Budget
Your lender is essential when it comes to the buying process. Although we have this step listed before finding an agent, both steps are interchangeable depending on your situation.
Although it may be too early to start working every week with a realtor, they can help guide you to great lender resources. For example, our local OHA team of realtors in Austin share their preferred lender list with clients, and the agent you hire may have something similar.
But, if you are trying to find a lender, and aren’t sure where or how to start, check this podcast episode to learn key tips for weeding out the competition.
Your lender will tell you how much money you will need, how much you can get approved for, how much your interest rate will be and more. This will help you determine your criteria (like sales price and area you can afford) before going to see homes in person with your realtor.
If you are ready to start making offers, then it’s time to get a pre-approval letter. This will last 90-120 days, but it’s not hard to get an updated one after it expires.
Your lender will want the following docs for pre-approval letter:
The last two years of tax returns
Pay stubs or other documentation of income for the last two months
Bank statements, plus brokerage and investment account statements
Gift letter, if someone is giving you the money
Drivers license
step 5: Connect with a Realtor
Again, this step may be done at the same time or before finding a lender - it just depends!
Your realtor is way more than just the person that shows you homes. They will help you to refine your criteria, set your expectations, and more. For example, if you wanted a 2,000 sqft home, 3 bed and 2 bath, in a specific area, your realtor can let you know if that is realistic with your budget. They will be the reality check you likely need!
They’ll also be your biggest supporter and teacher through this journey. That’s why it’s so important to shop around and find someone that you’ll work well with and trust. If you want to learn how to find the best realtor, click here!
If you are still unsure how to find the best agent in your area, click here, and we can help you find an incredible agent wherever you live in the US!
step 6: Create Your Final List of Wants/Needs
Remember that list of wants and needs you made at the beginning? Go look at it! This will help keep you focused on what you really want throughout the process.
Think about the following:
Are you house hacking?
How many rooms/bathrooms
Location?
New construction or resale home?
Fixer upper? Move in ready?
step 7: Online Home Search
Now one of the best parts: the home search! Have your realtor set you up with a home search with your general criteria to start getting a feel for the real estate market.
Start looking online at homes through the search your Realtor sets up for you!
You may have already started looking at homes on sites like Zillow or Realtor.com, but we don’t recommend them! Those websites are not kept up to date, and we find a lot of people just end up disappointed by them. They also take your information and sell them to other realtors, so you may find yourself getting flooded with phone calls!
The realtor you work with will set you up with a home search from the “MLS” or multiple listing service. This is the most updated and accurate way to view homes online.
step 8: View Homes with Your Realtor
Time to look at homes in person! A great agent will help keep you focused on looking at homes that are realistic with your budget and wants and needs. They have also walked through homes a million times, and while you are looking at the layout and natural light, they should be keeping their eyes on the following:
Roof
Foundation
Electrical box
Water heater
AC system
It’s key to keep an eye on big ticket home expenses like this. For example, let’s say you are looking for a move-in ready home with only a few cosmetic updates needed. You’ll want to know if the roof and AC are looking a bit shabby before making an offer, if possible.
If you are interested in learning more in depth about this, we have a course that will help prepare you to look out for these things on your own and overall make you a more informed buyer.
step 9: Make an Offer on a Home
So you found a home that you want - yay! Now it’s time to make an offer. First: get “comps” or comparables to see what other homes have sold for in the area, and try and determine the value of the home.
Now, if there are multiple offers on the property, this changes the game a lot. You may not be able to negotiate at all, and even have to give a little extra to secure the purchase. Listen to your realtor for guidance on the market trends, and try not to get too attached to a particular home in the chances that you don’t get it.
step 10: Inspection
When it comes time for your inspection, make sure your Realtor is there by your side!
They accepted your offer - congrats! Now it’s time to hire an inspector, and your realtor should have some recommendations for you.
It’s SUPER important to make sure you and your realtor can go to the end of the inspection together to get the low-down. A great agent will be able to translate for you if there are terms you don’t know and major issues you should be concerned about.
It’s important to stay calm during this process! Inspections can be 20-40 pages telling you every detail that is wrong with the house, but don’t fret, this is normal. And this is also why you want a great agent by your side. If there’s something that you should be concerned about, they’ll let you know!
step 11: Negotiations
Once you get an inspection, you can try to negotiate more. You can use what you found in the inspection to share with the seller why the price should be lower - kind of like building a case for yourself.
Your realtor will guide you through this process and what is the norm.
step 12: Lock Down Home Insurance Policy
Time to get your insurance policy! Lenders require you to do this before you close on a home. One suggestion is to talk to whoever does your car insurance, so you can see if you can get a bundle deal. You can also ask your lender or agent if they have any suggestions.
You also want to check if you need any additional types of insurance based on where your home is located, such as flood or earthquake insurance. Again, make sure to ask your agent and lender for help in this area!
step 13: Schedule for Utilities to Be Switched to Your Name
This one may differ depending on your situation, but most of the time, you’ll want to schedule your utilities to be turned on move-in day. You can check your sellers disclosure (if applicable) or with your agent for more information.
step 14: Final Walkthrough
Woah, you’re almost done! Now it’s time for your final walkthrough, aka the last time you’ll check out the property before closing day. This is typically done 2-3 days before your closing, and it is a crucial step.
During the time, you’ll want to make sure the repairs you negotiated with the seller were completely done, as well as any additional requests you made, i.e. cleaning, touch ups, etc.
This is also when you’ll want to make sure the seller has fully moved out of the property so you can better gauge the state of the home.
And, if you’re trying to decide what to move over, items you need to buy, etc. This is a great time to take final measurements and photos before the big day.
step 15: Closing Day
It’s closing day! Wow, you’ve really done it! First things first, you’re going to want to get the address of the title company, and time to meet, from your agent. Double check and confirm with your agent to see if they’ll be there or not.
Next, you’ll have to wire the money or get a cashiers check for your closing costs. You’ll also need to bring your driver's license to finish it all up.
And lastly, you may want to look cute! Because you definitely will want to capture a photo of this exciting moment when you officially become a homeowner!
Final step: Prepare for Your First Month as a Homeowner
Buying your first home isn’t nearly as scary if you have the right education and team by your side!
I know, I know - there’s more! Although you’re moved in and a homeowner, you’re not quite done yet.
Your first mortgage payment comes on the first day of the following month. It’s pretty nice that you have a month with zero payments - but don’t get too comfortable! It’s super important to find out your mortgage payment details so you make that first payment on time. But you can rest easy for a month and worry about the following details first.
Change your locks! This is always a huge first step in acquiring a property and even something you may want to do on move-in day.
Next, be a good neighbor! Go say hello and build a relationship with the people next door and across the street. We can’t tell you how valuable this is! They can not only help you get acquainted with the neighborhood, but also give you advice if they too are fellow homeowners!
And over the next few months - watch out for junk mail! Unfortunately many companies may now know you are a homeowner and attempt to get information from you. People will say "hey, I can help you with your homestead filing!" You can check in with your realtor to make sure it’s not something important, but a lot of it will be junk mail!
And that’s a wrap! If this was helpful to you and you’re looking for a more hands-on home buying experience, please join us for our next cohort of Homeschool:
It’s our very own comprehensive online course with live coaching. You are going to walk away being the most informed and savvy homeowner. We teach you the skills you need to buy your first home and make it an investment.
