First-Time Buyers · 2026

First-Time Homebuyer Checklist — 7 Steps Before You Apply

Complete these before talking to a lender — save time, money, and stress.

  1. 1

    Check Your Credit Score

    Pull free reports at AnnualCreditReport.com. Aim for 620+ (FHA) or 680+ (best conventional rates). Dispute errors before applying.

    Target: 680+ for best rates
  2. 2

    Calculate What You Can Afford

    Use the 28/36 rule: housing ≤ 28% of gross income, total debt ≤ 36%. Know your max price before you fall in love with a listing.

    Use our free affordability calculator
  3. 3

    Save for Down Payment + Closing Costs

    Budget 3–20% down plus 2–5% for closing costs. FHA allows 3.5% down; VA and USDA offer 0% for eligible buyers.

    Don't forget moving & emergency fund
  4. 4

    Research Down Payment Assistance Programs

    Many states and cities offer grants, forgivable loans, or tax credits for first-time buyers. Check your state housing finance agency.

    Free money you may qualify for
  5. 5

    Gather Your Documents

    2 years W-2s, 30 days pay stubs, 2 months bank statements, tax returns, ID, and proof of assets. Self-employed? Add 2 years of business returns.

    Have these ready before pre-approval
  6. 6

    Get Pre-Approved (Not Just Pre-Qualified)

    Pre-approval is a hard lender review with a specific loan amount. It makes your offer competitive and shows sellers you're serious.

    Valid 60–90 days typically
  7. 7

    Compare at Least 3 Lenders

    Rates and fees vary by hundreds per month between lenders. Get Loan Estimates in writing and compare APR, not just the rate quote.

    Shopping saves $100–$300/mo
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Recommended timeline: Start steps 1–4 at least 6 months before house hunting. Complete steps 5–7 before making your first offer. Most first-time buyers need 3–6 months from pre-approval to closing.