First-Time Homebuyer Guide

Determine How Much Home You Can Afford

Before searching for homes, establish a comfortable monthly housing budget. The purchase price is important, but your total monthly payment may include several different expenses.

Review Your Credit and Financial Profile

Your credit history can affect mortgage eligibility, interest rates, loan costs, mortgage-insurance requirements, and the financing programs available to you.

Before Applying for Financing

• Review your credit reports for inaccurate information.
• Continue making all payments on time.
• Avoid opening unnecessary new credit accounts.
• Reduce high credit-card balances where possible.
• Do not close older accounts without professional guidance.
• Maintain stable employment and income records.

Prepare for the Down Payment and Closing Costs

Many buyers believe that a 20% down payment is always required. In reality, available down-payment requirements depend on the loan program, borrower qualifications, occupancy, property type, and lender guidelines.

Get Fully Pre-Approved

A mortgage pre-approval helps establish your purchasing power and shows sellers that a lender has reviewed important financial information. This is stronger than a basic online prequalification.

Documents Commonly Requested by Lenders

Choose the Right Real Estate Representation

A buyer’s agent helps protect your interests throughout the transaction. Your agent should explain the process, communicate clearly, identify potential concerns, prepare and negotiate offers, and keep your transaction on schedule.

Begin Your Home Search

Create a list of your essential requirements and separate them from features that would simply be nice to have. This makes it easier to compare homes objectively.

Tour and Evaluate Properties Carefully

Attractive finishes are important, but they should not distract you from the property’s condition, functionality, location, and potential long-term expenses.

Items to Observe During a Showing

• Visible roof and exterior condition
• Signs of moisture or water intrusion
• Condition of windows and doors
• Age and visible condition of major systems
• Electrical-panel and plumbing observations
• Foundation or structural warning signs
• Room sizes and practical furniture placement
• Storage space and parking
• Noise, traffic and surrounding property conditions
• Potential renovation or maintenance needs

Prepare a Competitive Purchase Offer

The strongest offer is not always the offer with the highest price. Price, financing, deposit, contingencies, settlement timing and other terms can all affect how a seller evaluates an offer.

Complete Inspections and Due Diligence

After your offer is accepted, inspections and other investigations must be completed within the deadlines stated in the contract.

Possible Inspections and Investigations

Depending on the contract and inspection findings, possible responses may include proceeding as agreed, requesting repairs, requesting a credit, renegotiating permitted terms, obtaining additional evaluations, or exercising applicable contractual rights.

Complete the Appraisal, Underwriting and Final Approval

While inspections focus primarily on the condition of the property, the lender’s appraisal evaluates the property for lending purposes. Underwriting evaluates your finances and the loan file before final approval.

Review the Final Figures and Complete the Walkthrough

Before settlement, you should receive final information about the loan, closing costs and funds required. Review the figures and ask questions before closing day.

During the Final Walkthrough

• Confirm the property remains in the expected condition.
• Verify agreed repairs, when applicable.
• Confirm included appliances and fixtures remain.
• Check that the property has been substantially cleared.
• Look for new damage or unexpected changes.
• Confirm utilities are available for the walkthrough.

Attend Settlement and Receive Your Keys

At settlement, you will review and sign the required documents, complete the financial requirements of the transaction, and finalize the transfer of ownership.