The Ultimate Homebuyer Checklist

September 29, 2025

Download the Ultimate Homebuyer Checklist (PDF)

An average person will own at least three to four homes in their lifetime. This means as an adult, you’ll become a homebuyer multiple times, and you may not always remember the complexity of the process. This list exists to remind you about some of the less obvious steps in acquiring a property. And if this is your first home purchase, we recommend going over it in more detail to better understand each step in the process. We know you have a number of bedrooms in mind, a fenced yard, and a desired neighborhood, but do you know what type of loan to apply for, how much you can expect to pay for insurance, and the first items on your “to do” once you receive keys to your new home?

1) Financial readiness to purchase a home

Build a budget beyond the down payment. Plan for closing costs (lender, title, recording, escrow, taxes, etc.). A realistic cost will fall between ~2-5% of the purchase price, but this varies by market and loan type.
Check your debt-to-income (DTI). Lenders evaluate your monthly debt vs. income ratios. Historically, 43% DTI was the “General QM” cap, but today’s Qualified Mortgage rule relies mainly on price-based thresholds rather than a hard DTI cutoff (many lenders still look for ~43% or lower).
Strengthen credit. Better credit usually means better rates and lower total cost. A credit score required to qualify for a lower-rate mortgage is a FICO score of at least 670. If you are applying for a government loan FHA will require a minimum of 500 – 579 score with a 10% down payment and 580 score will offer the 3.5% down payment option. USDA loan requires minimum scores to fall between 580 and 610 and finally a VA loan will require 620 minimum credit score.
Build cash buffers. Ideally, set a reserve for moving, immediate repairs, and 3–6 months of expenses.

2) Choose your loan and assistance options

A conventional mortgage will have a minimum required credit score and a down payment in order to receive approval. If you are able to save a 20% down payment, this will save you on the PMI as it will not be required. You will choose from a fixed-rate mortgage (typically offered at 15 or 30 years), ARM (Adjustable Rate Mortgage) usually fixed for 5,7, 10 years.
FHA has much more flexible credit and down payment options, but requires mortgage insurance and is generally available to first-time buyers.
VA loans are offered to service members and veterans, and they typically require no down payment. These loans are guaranteed by the Department of Veterans Affairs.
USDA loans are available to buyers in rural areas with limited or low income. The loans are guaranteed by the U.S. Department of Agriculture.
Down-payment assistance programs (DPA) are state or local nonprofit programs that can help eligible homebuyers with down payments and closing costs.

3) Get preapproved (not just prequalified)

Assemble a loan packet. Typical items: last 30 days of pay stubs, W-2s (2 years), tax returns (2 years), two recent bank statements, and evidence of down-payment funds (gift letter if applicable).
Know your rights at the estimate stage. A lender can’t require documents just to issue a Loan Estimate—they need only six data points (name, income, SSN, property address, estimate of value, loan amount).
Rate locks. You can lock an interest rate for a set period of time, for 30 to 60 days. This assures that your rate won’t change before closing as long as you stay within the allotted time.

4) Build your search strategy

Consider your must-haves vs. nice-to-haves: beds/baths, commute, schools, accessibility, HOA rules, renovation tolerance. It is hard to find a house that will 100% meet all of your requirements. Be prepared to make a few compromises.
Research hazards & insurance early as properties in Special Flood Hazard Areas (SFHAs) usually require flood insurance for federally regulated or sponsored mortgages. Your lender must determine flood status, and will require a policy before closing.

5) Make offers wisely

Offer terms: price, earnest money, inspection and financing contingencies, appraisal contingency, seller credits, and closing timeline.
Fair Housing compliance: Sellers and agents cannot discriminate based on race, color, religion, sex (including sexual orientation and gender identity), national origin, disability, or familial status. Know your rights.

6) Due diligence after acceptance

Home inspection is always recommended. An inspection evaluates the condition and safety of the property. Unless you are purchasing a home “as is” further negotiations can be made based on the results of the inspection.
Appraisal outcomes: If the appraised value of the house is significantly lower than the contract price, you may renegotiate or exercise an appraisal contingency.
Insurance shopping: Compare homeowners policies and make sure you understand the flood insurance in the market you are purchasing the home.
Title search & title insurance: Confirms ownership and looks for liens/encumbrances; lender’s title policy is typically required.

7) Your closing timeline and knowing the documents you will need to present

Loan Estimate (LE) will be issued shortly after you apply. Review interest rate, APR, points, cash to close, and whether your rate is locked.
Closing Disclosure (CD). By law, you must receive your initial CD at least 3 business days before closing. If certain terms change, you’ll receive a corrected CD.
Final walkthrough is generally scheduled within 24–48 hours of closing. At the walkthrough, you will confirm the condition and agreed-upon repairs.

Bring to closing your government ID, certified funds or wire for cash to close, proof of insurance, and any other closing-day documents your title/escrow officer requests.

8) After you get the keys

Change locks; set up utilities & mail.
Save your closing package. Keep your note, deed, CD, title policy, inspection & appraisal, and warranties.
PMI reminder (conventional loans): You can request PMI cancellation at 80% loan-to-original value, and it must automatically terminate at 78%, or at the loan’s midpoint—subject to HPA exceptions.

The process of purchasing a property requires a bit of initial work, but once you decide on the lender, acquire a preapproval letter, and find your perfect property, the rest of the process is generally seamless. Rely on your agent or broker to provide you with local resources that may help you with some of the checklist items.