Ultimate First-Time Homebuyer Checklist

Check your credit score from all 3 bureaus (Experian, Equifax, TransUnion)

Aim for 620+ minimum; 740+ for best rates

Dispute any errors on your credit report

Corrections can take months — start early

Calculate your Debt-to-Income (DTI) ratio

Target below 36% for best approval odds

Pay down revolving debt (credit cards first)

Reduces DTI and improves credit utilization

Avoid opening new credit accounts or large purchases

Can lower your score before closing

Apply the 28/36 rule to your budget

Housing ≤ 28% of gross income; total debt ≤ 36%

Determine your down payment target

0% VA/USDA · 3% Conventional · 3.5% FHA · 20% to avoid PMI

Budget for closing costs (2–5% of purchase price)

Higher in states like NJ, NY, FL

Set aside 2–6 months of mortgage payments in reserves

Lenders require proof of financial cushion

Research Down Payment Assistance (DPA) programs

Grants or deferred loans available in many states

If using gift funds, obtain a signed gift letter

Must state funds are non-repayable

Last 2 years of W-2 forms (or 1099s if self-employed)

Self-employed: include full tax returns with Schedule C/K-1

Most recent 30 days of pay stubs

Must cover a full 30-day period

Last 2 months of bank statements (all pages)

Include all accounts — even blank pages

Statements for 401k, IRA, and investment accounts

Shows assets and reserves

Documentation for any additional income

Social Security, pension, disability, rental income

Current statements for all outstanding debts

Car loans, student loans, co-signed debts

Rent payment history if credit file is thin

Cancelled checks or bank statements showing withdrawals

Get pre-approved before house hunting

Required by most agents; strengthens your offer

Compare loan programs (Conventional, FHA, VA, USDA)

Each has different credit, income, and down payment requirements

Review your Loan Estimate carefully

Understand rate, APR, monthly payment, and closing costs

Lock in your interest rate at the right time

Ask Silvio about rate lock strategy

Understand mortgage insurance requirements

FHA requires MIP; Conventional PMI drops at 20% equity

Work with a local real estate agent experienced with first-time buyers

Ask about their experience with inspections and negotiations

Research comparable sales (comps) in target neighborhoods

Your agent will pull recent sold prices

Include an inspection contingency in your offer

Allows you to renegotiate or walk away if defects found

Include a financing contingency

Protects you if the loan is not approved

Submit a competitive offer with pre-approval letter attached

Pre-approved buyers often beat unapproved buyers even at same price

Schedule a certified home inspection

Covers foundation, roof, HVAC, plumbing, electrical, and more

Review inspection report and negotiate repairs or credits

You can request seller repairs or a price reduction

Lender orders a formal appraisal

Confirms the home's fair market value supports the loan amount

Review the Closing Disclosure (CD) at least 3 days before closing

Compare against your Loan Estimate — flag any surprises

Complete final walkthrough 24 hours before closing

Verify home is in agreed condition and vacant

Sign all closing documents (Promissory Note, Deed of Trust)

Bring valid ID and certified funds for closing costs

Receive your keys — you're a homeowner!

Funds transfer and deed recording complete the purchase