First-Time Homebuyer’s Checklist: What You Need to Know Before You Buy

Buying your first home is an exciting milestone, but it can feel overwhelming if you’re unsure where to start. From understanding your finances to finding the perfect property, we’ve broken down the process into manageable steps. This checklist will help you navigate the journey and make confident decisions to help you reach your real estate goals!

1. Know Your Budget

Before starting your home search, determine how much house you can afford. Consider the following:

• Down Payment: While 20% is what most people think is required, many programs allow for lower down payments. The right agent can help you understand what programs you may be eligible for. There are a few different $0 or low down payment programs to consider.

• Closing Costs: Budget for 2-5% of the home’s purchase price

• Monthly Expenses: Include mortgage payments, property taxes, insurance, & maintenance costs

Pro Tip: Use an online mortgage calculator to get an estimate of your monthly payments

2. Get Pre-Approved for a Mortgage

A mortgage pre-approval gives you a clear picture of your buying power and shows sellers you’re a serious buyer. A lot of times sellers will require for buyers to show proof of a pre-approval before confirming the showing of a property. Here’s what you’ll need to provide the lender:

• Proof of income (pay stubs, W-2s, or tax returns)

• Credit score and history

• Bank statements

Why It Matters: Pre-approval can speed up the buying process & help make sure you know exactly what price range you need to be house hunting in.

3. Research First-Time Homebuyer Programs

There are many programs designed to help first-time buyers, a good Real Estate Agent will guide you in the direction you need to be looking based on your specific situation. It is always beneficial for buyers to understand what programs are out there and what this could mean for them on their home buying journey. a few programs to look into & be familiar with:

• FHA Loans: Low down payment requirements

• VA Loans: Exclusive to veterans and active-duty military member

• USDA Loans: $0 or low down payment options

• NYS Assistance or Federal Grants and loans: for down payments or closing costs

Pro Tip: Talk to your real estate agent or lender about local programs that could save you money

4. Define Your Priorities

Make a list of must-haves and deal breakers before starting your search. I always tell buyers that a need is something that you absolutley cannot live without & your wants are things that would be nice, but not a deal-breaker. A few things to consider when creating this list:

• Location: Proximity to work, schools, & amenities

• Home Type: Single-Family Homes, Condo, Ranch Style, Townhouse, etc.

• Features: Number of bedrooms or bathrooms, outdoor space, garage, etc.

Remember: You might not find everything on your wishlist- so be sure to be able to prioitize & consider the things you would be okay with possibly compromising on.

5. Hire the Right Real Estate Agent for You

Choosing the right real estate agent can make or brek your first-time homebuying experience. A skilled, supportive agent does more than just show you houses. They become your advocate, educator, and guide throughout the enitre process. Here's what makes a good agent indispensable:

• Help you find homes that fit your budget and needs

• Local Market Expertise

• Access to a Trusted Network of Professionals

• Effectively Negotiate on your behalf

• Guide you through paperwork and legal requirements

• Be a long-term resource for you, even after the purchase of your home

Tip: Choose an agent familiar with your target market and who has shown to be supportive and knowledgable when it comes to caring for their clients & their best interests.

6. Start Your Home Search

With your priorities and pre-approval in hand, it’s time to start looking!

• Use online platforms to browse listings, ask your agent about giving you access to a client portal to easily view properties & communicate with them about homes you'd like to see or even ones that you are not interested in at all.

• Attend open houses to get a feel for the market

• Ask your agent about off-market properties for more options

Pro Tip: Take notes and photos during showings to help you compare properties later.

7. Understand the Home Inspection Process

Once you’ve found the perfect home and made an offer, schedule a professional inspection. (Unless you have waived inspection, which comes with risks)

• Why It’s Important: Inspections identify potential issues, from structural problems to plumbing concerns. These inspections can save you from potentionally moving forward with a purchase that may cost you in the future.

• Next Steps: Use the results to negotiate repairs or adjust your offer if needed

8. Understanding the Due Diligence Period: From Inspection to Closing

The due diligence period is the time frame—often ranging from a week to a few weeks—after your offer is accepted and before closing, during which you, the buyer, can further investigate the property. It’s an opportunity to ensure that everything checks out financially, legally, and structurally, giving you the flexibility to address concerns or even walk away if serious issues arise (depending on your contract terms).

Key Activities During Due Diligence:

• Schedule a Home Inspection by a Professional & Review the Home Inspection Report

• Schedule Additional Inspections

• Negotiating Repairs or Price Adjustments

• Finalizing Financing & Appraisal

• Title Search & Homeowners Insurance

• Staying on Schedule: Deadlines Matter: Missing deadlines can mean losing leverage in negotiations or, in some cases, forfeiting your earnest money.

Pro Tip: The due diligence period is your best (and sometimes last) chance to confirm that the home you’re purchasing meets your expectations—both structurally and financially. By actively investigating every detail and working closely with a dedicated agent, you’ll enter closing day feeling confident and well-informed.  Double-check all paperwork before signing and ask questions if anything is unclear.

Buying your first home is a journey, but with the right preparation and support, it’s an achievable dream. If you’re ready to take the first step, contact Small City Realty. Our team is here to guide you every step of the way!