Everything You Need to Know From Pre-Approval to Closing
Buying your first home is exciting—but let’s be honest, it can also feel overwhelming. Between mortgage terms, inspections, offers, and paperwork, the process has a lot of moving parts.
That’s why we created this step-by-step first-time homebuyer checklist—to guide you from “just browsing” to happily holding your keys.
Step 1: Check Your Credit Score
Your credit score plays a big role in what kind of mortgage you can get (and at what interest rate).
What to do:
Check your score from all three bureaus (Equifax, Experian, TransUnion)
Look for errors and dispute them if needed
Aim for a score of 620+ (but 740+ gets the best rates)
Pay down credit card balances and avoid new debt
Step 2: Save for Your Down Payment & Closing Costs
You don’t always need 20% down—but you’ll still need some cash on hand.
Typical Costs:
Down payment: 3% to 20% of the home price (depending on loan type)
Closing costs: 2% to 5% of the loan amount
Earnest money deposit: 1% to 3% (goes toward your purchase)
Also consider funds for:
Inspections & appraisals
Moving costs
Home essentials after closing (furniture, tools, etc.)
Step 3: Get Pre-Approved for a Mortgage
This step is crucial. Pre-approval shows sellers you’re serious—and tells you how much home you can afford.
To get pre-approved, you’ll need:
W-2s or tax returns (2 years)
Recent pay stubs
Bank statements
Credit check
Employment history
Bonus Tip: Talk to multiple lenders to compare interest rates, fees, and loan programs (FHA, VA, USDA, Conventional, etc.).
Step 4: Find a Real Estate Agent You Trust
Your agent is your guide, advocate, and negotiator throughout the process. Choose someone with local expertise and a great reputation—especially with first-time buyers.
Ask about:
Their process for helping first-time buyers
How they communicate (text, calls, email)
How they handle offers in a competitive market
Pro Tip: At First Capitol Real Estate, we specialize in helping first-time buyers feel confident every step of the way.
Step 5: Start House Hunting
Time for the fun part—but stay focused! Make a list of your must-haves, nice-to-haves, and dealbreakers.
Consider:
Location (schools, commute, neighborhood vibe)
Size and layout
Condition of the home (move-in ready or fixer-upper?)
Resale value and neighborhood trends
Try to see homes quickly, especially in hot markets—and be ready to move fast when you find “the one.”
Step 6: Make an Offer
Your agent will help you decide on a competitive, informed offer—based on market data, recent sales, and seller motivation.
What your offer may include:
Purchase price
Contingencies (inspection, financing, appraisal)
Earnest money deposit
Timeline for closing
You may go back and forth with the seller on terms. Stay flexible, and trust your agent’s negotiation experience.
Step 7: Complete Your Inspections and Appraisal
Once under contract, it’s time to check the home’s condition and value.
Home inspection: Checks the home’s structure, systems, and safety. You may negotiate repairs or credits.
Appraisal: Ordered by the lender to confirm the home’s market value. If it comes in low, you may renegotiate or make up the difference.
Step 8: Finalize the Mortgage
Now your lender will officially underwrite your loan. Be ready to send documents quickly and avoid changing jobs, opening new credit, or making large purchases.
You’ll receive a loan estimate, then a closing disclosure with final numbers a few days before closing.
Step 9: Closing Day!
You made it! On closing day, you’ll sign your final paperwork, pay closing costs, and officially become a homeowner.
Bring to closing:
Government-issued ID
Certified funds (or wire transfer) for your closing costs/down payment
A calm mindset—there’s a lot of paperwork, but your agent and title team will walk you through it.
Once everything is signed and funded…
Step 10: Get Your Keys!
Congratulations! You’re officially a homeowner. Whether you’re moving in that day or doing a few updates first, take a moment to celebrate—you did it!
Final Thoughts: Buying Your First Home Doesn’t Have to Be Overwhelming
With the right knowledge and support, the homebuying process becomes a lot more manageable—and even fun. From budgeting and pre-approval to inspections and closing, this checklist is your roadmap to success.
Need Help Buying Your First Home?
At First Capitol Real Estate, we walk first-time buyers through the process with patience, experience, and care. Let’s turn your dream into a plan—and your plan into a home.
Schedule a free consultation today and take the first step with confidence.
