A Checklist For the First Time Homebuyer

Tyson T Reeves
Tyson T Reeves
Published on October 4, 2016

Like shopping for anything expensive, shopping for a home requires research and a game plan. When you have a list of steps to take, the process will be far less perplexing and far more enjoyable. You’ll also be more successful if you have a strategy, so let’s take a look at some of the initial steps to take to as a first time homebuyer.


Find a real estate agent

Since you’re now ready to look at homes, you’ll need a real estate agent’s help from here on. Remember the seller pays your real estate commission, so there really is no reason not to have your own representation and many, many reasons you should.

While all of the steps in the checklist are important, and should be taken in the order listed, securing the services of a professional real estate agent to help in the purchase of a home is critical. Having a pro represent your interests, negotiate on your behalf and walk you through all the piles of paperwork will give you peace of mind during the process. Your agent is there to guide you through all of the steps.


Shop for a mortgage

Meeting with a lender is the next important step in the game plan. Your real estate agent will likely have trusted loan officers that he or she recommends, but it is certainly okay to use one that you have selected yourself.

Based on the outcome of your first meeting with a loan officer, you can request a pre-approval letter, which puts you in a strong negotiating position with home sellers.

Lenders want stacks of paperwork, all proving that you can afford a home. Plan on supplying your lender with at least the following:

  • Tax returns, including Schedule C if you are self-employed
  • Pay stubs,
  • W2s,
  • Bank statements (all pages, including the blank ones)
  • Identification, including your Social Security card and driver’s license

The self-employed and those pursuing jumbo loans may be asked for additional documentation.



Check your finances

You don’t have to be a first time homebuyer to know that working on your finances won’t be the most exciting part of the process, but it just may end up being the most rewarding. Just as you wouldn’t go car shopping without knowing exactly how much you can afford to spend, neither should you step foot in even one home for sale without understanding where you stand financially.

A good place to start is with your credit score. If you haven’t checked it in a while, order your credit reports. By law, you are entitled to one free credit report (from each of the three reporting agencies) every 12 months. The only company that is authorized by the Federal Trade Commission to supply consumers with these free reports is annualcreditreport.com.

Your loan officer will gather your statements above along with your credit reports and lead you through the steps to improving your situation if necessary.

Then, go over your budget (if you don’t have one, create one using the template here). Your loan officer can help you tally up all of your debts and figure out how much money you have coming in every month and determines how much of a monthly payment the lender will approve for you.


Make a list of must-haves in your new home

Now that you know how much you can spend on a home, it’s time to make a shopping list, which can include items such as:

  • Location – proximity to public transportation, schools, shopping or whatever is important to you.
  • Neighborhood must-haves – community pool, security gate, guard, trails, clubhouse, etc. Do you want friendly neighbors or those that keep to themselves? A neighborhood with or without kids?
  • Architectural style – if you have a particular style in mind, such as colonial or Victorian, list that, as well as the number of bedrooms and bathrooms you need.
  • Interior features – If there is anything you absolutely must have, such as a formal dining room or a chef’s kitchen, make note of it.
  • Exterior – Do you need a large lot or just a small yard? Is a carport sufficient or do you require a garage? Don’t forget to list pool, spa, fencing and any other exterior features you want in your new home.


Finally, organize the list, placing the three most important items at the top. These are your priorities, and share them with your real estate agent. This is often one of the first things done because it requires much less work. Most people have an idea of what they want in their next home well before starting the process.


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