Your first home purchase can feel like a maze of new terms, paperwork and decisions. The good news is that the process follows a fairly predictable path. When you know what comes next, you can prepare ahead of time and avoid last-minute stress. Use this checklist to guide you.
Decide what monthly payment you are comfortable with, not just what a lender may approve. Include property taxes, homeowners insurance, possible mortgage insurance and HOA dues. Leave room for savings, emergencies and the other things you enjoy. Our mortgage calculator is a helpful place to start.
Pull your credit reports, look for errors and pay down balances where you can. A stronger credit profile may open up more loan options and better terms.
Plan for closing costs, moving expenses, and a cushion for repairs after you move in.
A preapproval means a lender has reviewed your income, assets, debts and credit and given you an estimate of how much you may be able to borrow. It shows sellers you are a serious buyer. Your loan officer can also explain which programs fit you, whether that is a conventional loan, an FHA or VA loan, or a renovation loan for a home that needs work.
A knowledgeable agent can help you understand the local market, find homes that fit your criteria and negotiate on your behalf. Many agents can also recommend trusted inspectors, contractors and other professionals.
Start talking with insurance agents early so you understand coverage costs for different types of homes and areas.
Make a list of must-haves and nice-to-haves, then tour homes that match your criteria and budget. Take notes and photos so you can compare.
When you find the right home, your agent will help you decide on price and terms. Expect some back-and-forth. The seller may counter, and you may counter again before reaching an agreement.
Most purchase agreements include an inspection contingency that gives you a set number of days to inspect the home. Book a qualified inspector quickly, attend if you can, and review the report with your agent to decide whether to request repairs or credits.
Your lender will usually order an appraisal to confirm the home’s value supports the loan amount. If the appraisal comes in low, your agent and loan officer can help you consider your options.
Respond quickly to any requests for documents. Avoid opening new credit, making large purchases or changing jobs until after closing.
You will receive a Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and ask your loan officer about anything that changed.
Visit the home shortly before closing to confirm agreed-upon repairs are done and the property is in the expected condition.
Closing typically takes place at a title company or attorney’s office. Bring a valid photo ID and any funds required, usually by wire or cashier’s check. Always confirm wiring instructions directly with your title company by phone. After you sign, the keys are yours.
Every buyer’s path is a little different, but knowing the steps makes the journey far less intimidating. Learn more on our first-time home buyer page, then reach out when you are ready. A FLO Mortgage loan officer would love to help you get started.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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