Buying your first home involves more moving pieces than most people expect — credit review, document gathering, pre-approval, house hunting, and closing, each with its own timeline. This checklist walks through the process roughly in order, with pointers to more detailed guides along the way.
Step 1: Check and prepare your credit
Your credit score is one of the biggest factors in the interest rate you will be offered, and it also affects which loan programs you qualify for. Pull your credit reports, dispute any errors, and avoid opening new credit accounts or making large purchases in the months before applying, since new inquiries and increased debt can both affect your score and your debt-to-income ratio.
Step 2: Gather your documents
Lenders verify income, assets, and identity before approving a loan. Common documents requested include:
- Recent pay stubs (typically the last 30 days)
- W-2 forms or tax returns for the past two years, especially if self-employed
- Bank and investment account statements
- Government-issued identification
- Documentation for any additional income (bonuses, rental income, alimony)
- A gift letter if part of your down payment is coming from family
Having these ready before you apply speeds up pre-approval considerably.
Step 3: Understand your budget, not just your approval amount
A lender will tell you the maximum amount you are approved to borrow based on your income and debt-to-income ratio. That maximum is not the same as what is comfortable for your actual budget. Use the mortgage calculator to model your realistic monthly payment including taxes, insurance, and PMI if applicable — see our escrow guide for what gets added on top of principal and interest.
Step 4: Get pre-approved, not just pre-qualified
Pre-qualification is a rough estimate based on self-reported information. Pre-approval involves the lender actually verifying your income, assets, and credit, and results in a conditional commitment letter you can use when making offers. In competitive markets, sellers often will not seriously consider an offer without a pre-approval letter attached.
Step 5: Decide on loan type and down payment
Compare FHA and conventional options based on your credit and available down payment — see our FHA vs conventional guide. If you are putting down less than 20%, understand how PMI or mortgage insurance premiums will affect your payment and how they can eventually be removed — see our PMI guide.
Step 6: Budget for closing costs, not just the down payment
Beyond the down payment, buyers typically need cash for closing costs — appraisal fees, title insurance, loan origination fees, prepaid taxes and insurance for the escrow account, and inspection fees. Many first-time buyers underestimate this line item; ask your lender for a loan estimate early so you can budget for it alongside the down payment.
Step 7: Use the calculator to model real scenarios
Before making an offer, run the specific home price, your expected down payment, and current rate quotes through the calculator to see the full monthly payment. Save a few scenarios with different down payment amounts to see how they change your monthly obligation — see our guide to comparing loan scenarios.
Step 8: Lock your rate at the right time
Once you are under contract, your lender will typically offer to lock your interest rate for a set period. Ask how long the lock lasts, what happens if closing is delayed past that window, and whether an extension carries a fee.
Step 9: Do a final walkthrough and review the closing disclosure
Before closing, you will receive a Closing Disclosure outlining final loan terms and costs. Compare it against your original Loan Estimate and ask about any differences before signing. Federal rules generally require this disclosure to be provided a set number of business days before closing, giving you time to review it carefully.
After you close
Set up automatic payments, confirm your escrow account is funded correctly, and keep a copy of your closing documents. If you put down less than 20%, mark your calendar for when you expect to reach 20% equity so you can request PMI removal as soon as you are eligible.