First-Time Homebuyer Guide: Your Step-by-Step Path to Owning a Home

Thinking about buying your first home? This complete first-time homebuyer guide breaks down budgeting, financing, checklists, and next steps to make your journey stress-free.

First-Time Homebuyer Checklist

Before you dive into listings, make sure you’re prepared. Here’s a simple checklist to guide your path to homeownership:

✔ Review your credit score
✔ Set a homebuying budget
✔ Get pre-approved for a mortgage
✔ Hire a trusted real estate agent
✔ Make a needs vs. wants list
✔ Explore local neighborhoods
✔ Tour homes in your price range
✔ Make a strong, informed offer
✔ Schedule a home inspection
✔ Finalize your mortgage
✔ Do a final walk-through
✔ Close on your home & celebrate!

 

Want a printable version? Click here to download your FREE First-Time Home Buyer Checklist PDF and keep it handy as you go step-by-step through the process!

 

Budget Planning: How Much House Can You Afford?

Your dream home should also be financially comfortable. Here’s how to create a smart, sustainable homebuying budget:

1. Assess Your Monthly Income and Expenses

• Income
• Monthly debts
• Lifestyle expenses

Pro Tip: Most experts recommend keeping total housing costs under 30% of your gross income.

2. Include Hidden Homeownership Costs – In addition to the mortgage, factor in:

• Property Taxes
  
• Maintenance and repairs
  
• Utilities
  
• HOA fees (if applicable)
  

3. Start Saving for These Costs

• Down payment: 3.5%–20%, depending on your loan
• Closing costs: 2%–5% of the home price
• Emergency fund: Always have at least 3–6 months of savings post-purchase

 

Not sure how much home you can afford? Use a home affordability calculator to get a quick estimate based on your income, debts, and down payment. Check out this free calculator from NerdWallet.

It’s a helpful way to start thinking about your budget—and what monthly payment feels comfortable—before you connect with a lender.

 

 

Financing Tips for First-Time Buyers

Financing can be one of the most confusing aspects of the process. Here’s what to know and do:

Check Your Credit Score

• Aim for 620+, but 740+ earns better interest rates.
• Improve it by paying down credit cards and avoiding new debt.
• Review your credit report for errors, outdated accounts, or signs of fraud—these can impact your credit score and loan approval.

Explore First-Time Buyer Loan Programs

• FHA Loans: 3.5% down and flexible credit requirements
• VA Loans: 0% down for qualified military/veterans
• USDA Loans: 0% down in rural areas
• State & Local Programs: Check your area for down payment grants

Get Pre-Approved, Not Just Pre-Qualified

Before you start touring homes, it’s important to understand the difference between pre-qualification and pre-approval—and why one carries a lot more weight in today’s market.

Pre-Qualification

A quick estimate based on basic information you provide about your income, debts, and credit.

• Fast and easy
• Not verified by a lender
• Not taken seriously by most sellers

Pre-Approval

A lender reviews your actual financial documents—like pay stubs, tax returns, credit reports, and bank statements—and issues a letter stating how much you’re approved to borrow.

Why it matters:

• Shows sellers you’re financially ready and serious
• Gives you a clear, realistic price range for your search
• Makes your offer stronger, especially in a competitive market
• Speeds up the closing process once your offer is accepted

Pro Tip: Request a property-specific pre-approval letter once you’re ready to make an offer. This shows sellers you’re fully prepared to close.

 

Need help finding a great local lender? I can connect you with trusted mortgage professionals who offer excellent service, competitive rates, and fast approvals. Reach out today and let’s get your home search started the smart way.

 

Step-by-Step Guide to Buying Your First Home

Let’s walk through the full process from “just looking” to “just closed”!

Step 1: Partner With a Real Estate Agent

Working with the right agent can make your homebuying experience smoother, less stressful, and more successful. But how do you find the right one?

Here are a few things to look for in a real estate agent:

• Local expertise – They should know your area’s neighborhoods, price trends, and market conditions.
• Strong communication – They should be responsive, clear, and ready to answer your questions at every step.
• Experience with buyers like you – Especially if you’re a first-time buyer, choose someone who will take the time to guide you through each part of the process.

Good reviews and references – Look for testimonials or reviews from other buyers who had great results.

Pro Tip: Interview a few agents and don’t be afraid to ask how they’ll support you through negotiations, inspections, and financing.

 

Step 2: Begin Your Home Search

This is where the excitement really begins! As you start searching for your future home, take a strategic approach to avoid burnout and stay focused on what truly matters to you.

Consider these key factors when evaluating homes:

• Commute time – Map the drive during typical hours.
• School zones – Even if you don’t have children, strong school districts can boost resale value.
• Resale potential – Look at neighborhood trends, growth, and long-term appeal.
• Nearby amenities – Think grocery stores, parks, restaurants, and healthcare.

How to Find Homes That Fit

There are a few great ways to discover available homes:

• Set up customized searches through a local Multiple Listing Service (MLS) feed (ask your agent to do this for you!)
• Use trusted home search sites like Realtor.com, Zillow, or your agent’s website
• Attend open houses to get a feel for the neighborhood and floor plan flow
• Ask your agent for coming-soon or off-market listings you might not find online

Choosing Homes to Tour

You don’t need to see every listing—just the right ones. Here’s how to narrow it down:

• Review photos, floor plans, and virtual tours before scheduling a visit
• Compare each home against your “Needs vs. Wants” list
• Prioritize homes that check most boxes, even if they don’t check all
• Be realistic but firm about your non-negotiables

Pro Tip: Take notes during showings—after a few, they can start to blur together!

 

Want help staying focused during your search? I’ll create a personalized search based on your goals and budget, send listings straight to your inbox, and help you choose which homes are truly worth touring.  Let’s talk about what you’re looking for — I’ll make sure you never waste time or miss an opportunity.

 

Step 3: Make a Smart Offer

Once you find “the one” it’s time to make an offer that’s both competitive and aligned with your goals. This is where having the right agent in your corner truly matters.

Your agent will help you:

• Evaluate the market
  You and your agent will look at recent sales (comps), current competition, and how long the home has been on the market to determine a strong offer price. In a hot market, you may need to act fast and bid aggressively—while still protecting your interests.

• Make a competitive, fair offer
  Your offer isn’t just about price. You should also consider earnest money, closing timeline, and terms that appeal to the seller. Sometimes a cleaner offer or flexible closing date can beat a higher price.
• Include key contingencies
  These protect you in case something unexpected comes up. Common contingencies include:

• • Home inspection – Allows you to back out or renegotiate if major issues are found
  • Appraisal – Ensures the home is worth what you’re paying
  • Financing – Gives you time to secure your loan without penalty
  • Sale of your current home – If applicable

What Happens After You Submit the Offer?

• The seller can accept, reject, or counter your offer.
• If a counteroffer comes in, your agent will help you review the changes and respond quickly.
• Once accepted, you move into the contract and due diligence phase—this includes inspections, appraisal, and finalizing your loan.
  

Step 4: Schedule a Home Inspection

Even if the home looks picture-perfect, a professional home inspection is one of the most important steps in the buying process. It protects your investment by uncovering potential issues you might not notice during a showing.

Your home inspector will examine the overall condition of the home, including:

• Roof & foundation – Check for leaks, structural cracks, or signs of settling
• Plumbing – Look for leaks, corrosion, water pressure issues, or aging pipes
• Electrical systems – Ensure the panel, wiring, and outlets meet safety standards
• HVAC systems – Verify the heating and cooling systems are in working order and not at the end of their life span
• Pest, mold, or moisture concerns – Check for signs of termites, mold, or past water damage that could lead to costly repairs

What Happens After the Inspection?

Once you receive the inspection report, your agent will help you:

• Review the findings in plain language
• Decide which issues (if any) to address with the seller
• Negotiate repairs, price reductions, or credits based on the severity of the problems

In some cases, the inspection may even prompt you to walk away—and that’s okay! It’s better to discover deal-breakers before closing than after.

 

Need a trusted inspector? I work with a network of experienced, reliable inspectors in our area and can help you schedule one quickly to keep your purchase on track.  

 

Step 5: Go Through Appraisal & Underwriting

Once your offer is accepted and inspections are complete, your lender will move forward with the appraisal and underwriting—two essential steps in finalizing your mortgage and protecting your investment.

The Appraisal: Confirming the Home’s Value

The lender orders an appraisal to make sure the home is worth what you’re paying for it. A licensed appraiser will evaluate the property based on:

• Recent sales of similar homes in the area (called comps)
• The home’s size, features, condition, and location
• Market trends and neighborhood demand

Why it matters

If the appraisal comes in at or above the purchase price—great! You move forward as planned. If it comes in low, your agent will help you:

• Renegotiate the price with the seller
• Ask for a seller credit or make up the difference with a larger down payment
• Decide whether to walk away if the value gap is too wide

Underwriting: Final Loan Approval

Underwriting is the final review of your loan file. The lender’s underwriting team will verify:

• Your income, employment, credit score, and debt-to-income ratio
• The source of your down payment and closing funds
• All documents you’ve submitted, including the appraisal and title report

This process can take a few days to a few weeks, depending on the lender and how quickly documents are provided. You may be asked for additional paperwork—this is normal, so don’t stress.

What You Can Do to Help Things Move Smoothly:

• Respond quickly to document requests
• Avoid big purchases (like a car or new furniture)
• Don’t change jobs or open new credit during this time

Questions about appraisals or underwriting?

Your agent should help you stay on track, manage any surprises, and work closely with your lender to keep your closing date on schedule.

 

Step 6: Final Walkthrough & Closing Day

You’re almost there! This is the last step before the home officially becomes yours. Here’s what to expect during the final walkthrough and on closing day.

Final Walkthrough: One Last Check

Usually scheduled within 24–48 hours before closing, the final walkthrough gives you a chance to:

• Confirm the home is in the same condition as when you made the offer
• Verify agreed-upon repairs were completed
• Check that no unexpected damage has occurred
• Ensure all fixtures, appliances or items included in the contract are still in place

Pro Tip: Bring your contract and inspection report to reference if needed—and don’t hesitate to speak up if something feels off.

 

Closing Day: Sign, Pay, and Celebrate

Your closing appointment is typically held at a title company, attorney’s office, or remotely (depending on your state).

Here’s what happens:

• Sign your final loan and legal documents
  These include the deed, loan agreement and disclosures. Take your time and ask questions—a good agent will walk through it all together with you.

• Pay your closing costs
  This can include lender fees, taxes, insurance and your down payment. You’ll usually bring a certified check or wire the funds in advance.

• Get the keys to your new home
  Once everything is signed and the transaction is funded, the keys are yours! 🎉 Time to celebrate and move in.

Want support through every step?

From walkthrough to closing table, I’ll be there to make sure nothing is missed and everything goes smoothly.  Let’s connect so you feel confident and prepared for your big day!

 

Next Steps for First-Time Buyers

Here’s how to move from reading to doing:

1. Check your credit score at AnnualCreditReport.com
2. Build a budget with our Home Affordability Calculator
3. Start saving toward your down payment and closing costs
4. Get pre-approved with a local lender
5. Schedule a buyer consultation with a real estate expert (that’s me!)

Final Thoughts: You’ve Got This

Buying your first home is a big step—but it doesn’t have to be stressful. With the right guidance and preparation, you can go from overwhelmed to empowered.

Whether you’re just starting to explore or ready to take the leap, I’m here to help.

 

Ready to start your journey? Book Your Free Buyer Consultation

Let’s talk about your goals, review your options, and get you moving forward.

 

📞 Call/text: 423.856.3327

📧 Email: NicoleLewisC21Legacy@gmail.com

🌐 Click here to schedule a 30-minute consultation