A Complete Home Buying Checklist to Win in a Tight Market

Buying your first home in 2026 doesn't feel like the version of home shopping that your parents talked about. Rates are higher, inventory is tighter, and the agent agreement you'll sign before you tour your first house didn't even exist two years ago.

If the whole thing feels overwhelming, you're not making it up. Clever's buyer survey found that 46% of all buyers, and 58% of first-time buyers, said the process was more stressful than expected. [Source: Clever Real Estate buyer survey, proprietary] The market data backs up the dread. First-time buyers now make up just 21% of the market, a record low going back to 1981, and the median age of a first-time buyer has climbed to 40, an all-time high.[1] Mortgage rates are sitting around 6.37% for a 30-year fixed-rate mortgage, well above the 3% range buyers got used to during the pandemic.[2]

So yes, it's harder. It's also still very doable. The biggest obstacle most first-time buyers run into isn't money or credit; it's not knowing what comes first. NAR found that 38% of first-time buyers cited "understanding the process" as the hardest part of buying a home.[1]

The seven steps below walk you through the process in the order that actually saves you time and money. Each one builds on the last. You don't need to do them all this week, but you do need to do them in this order.

The home buying process at a glance

Here's the short version of what's coming.

1. Get your finances in order: Save money, polish up your credit score, and calculate what you can actually afford, not just what a lender will let you borrow.
2. Get preapproved, then find an agent: Walking into agent conversations with a real mortgage preapproval (not a guess) changes everything.
3. House hunt with strategy: Spend your time on properties you can actually buy in neighborhoods that fit your life.
4. Make a smart offer: Use market data, the right contingencies, and earnest money that signals seriousness without overextending.
5. Inspect, appraise, and finalize the contract: Go beyond the general inspector when the house warrants it.
6. Close: Understand the real costs before signing, and protect your wire transfer.
7. Move in and settle in for year one: From changing the locks to homestead exemptions to a home maintenance reserve fund.

A few of these steps can overlap. You can research neighborhoods while improving your credit, for example. But the sequencing matters most for the first three. Skip ahead and you'll risk wasting weeks looking at houses you can't afford or signing with an agent before you've vetted them.

Step 1: Get your finances in order

Before you call a lender and before you call an agent, you need a clear picture of your own money. This is the part most first-time buyers want to skip, and it's also the part that pays the highest dividends later.

Save for the down payment (and closing costs)

Conventional wisdom says you need at least a 20% down payment before you start shopping. You don't. The median down payment for first-time buyers in 2025 was 10%, which was the highest level since 1989, and still nowhere near 20%.[1] Several loan programs let you go much lower:

• VA loans: 0% down for eligible veterans and active-duty service members.[3]
• USDA loans: 0% down in eligible rural areas.[4]
• Conventional HomeReady (Fannie Mae) and Home Possible (Freddie Mac): 3% down, with income limits.[5] [6]
• FHA: 3.5% down with a 580+ credit score; 10% down for scores between 500 and 579.[7]
• Conventional: Typically 5% down for a primary residence, though 3% products exist.

One thing first-time buyers consistently underestimate: Your down payment and your closing costs are two different buckets. On a $375,000 home with 5% down, you'll need $18,750 for the down payment plus another $9,500 to $12,300 in closing costs. That means your total cash to close will be roughly $28,000 to $31,000.

Most first-time buyers fund this from a few sources: 59% used personal savings, 26% pulled from retirement or investment accounts, and 22% received a gift or loan from family.[1]

Improve your credit score

Lenders offering most conventional loans want a credit score of at least 620. FHA loans go down to 580 (with 3.5% down) or 500 (with 10% down).[7] But the difference between a 620 and a 740 score can be tens of thousands of dollars over the life of your loan, so it's worth the runway to push your score up before you apply.

A few practical moves that work in a 3- to 6-month window:

• Pay down revolving credit card balances to below 30% of your limit (under 10% is even better).
• Don't open new credit accounts for at least six months before applying.
• Pull your credit reports from all three bureaus through annualcreditreport.com (the official free site) or from each credit bureau (Equifax, Experian, TransUnion), and dispute any errors.
• Don't close old credit cards, even if you're not using them. Length of credit history matters.

Calculate your DTI

Your debt-to-income ratio (DTI) is what lenders use to determine a monthly mortgage payment (and a total loan amount) that is at an acceptable risk level to offer you the loan. The standard benchmark is the 28/36 rule: Your housing payment should be no more than 28% of your gross monthly income, and your total debt payments — housing plus car loans, student loans, credit card minimums — should be no more than 36%.[8] For most loan programs, the maximum DTI is 43%, though lenders have some flexibility above that with strong compensating factors.

Here's a worked example. Say you make $6,000 a month gross and you've got $1,500 in existing monthly debt payments (car, student loans, credit cards). Your existing DTI is 25%.

The 28% housing cap puts you at $1,680 a month for housing. But you also need to stay under 36% total. Subtract your $1,500 in existing debt from 36% of $6,000 ($2,160), and your real housing budget shrinks to $660 a month. That's the binding constraint, not the 28% rule.

The fix: pay down debt, raise your income, or both. Knocking $500 off your monthly debt obligations adds the same $500 to your potential monthly housing budget.

Build a closing cost reserve

This is where some buyers get blindsided. On a typical $350,000 to $400,000 purchase, plan for $10,000 to $15,000 in closing costs alone, separate from your down payment. We'll itemize that number in Step 6, but the takeaway is: don't show up with a down payment fund and assume that's all you'll need to close on the home.

A good general guideline is to budget your down payment, then add 3% of the purchase price for closing costs, then add another 1% for inspections, the appraisal, your first homeowners insurance premium, moving expenses, and immediate repairs.

First-time buyer programs and down payment assistance

The biggest underused resource for first-time buyers isn't a hack; it's the dozens of programs that already exist and that nobody told you about.

The HUD definition of "first-time buyer" is also broader than you think. You qualify for most federal programs if you haven't owned a primary residence in the last three years.[9] If you owned years ago, divorced, or sold during the pandemic and rented since then, you may still qualify.

Federal loan programs:

• FHA loans are the workhorse first-time buyer program: 3.5% down with a 580+ credit score, more flexible DTI rules, and lower credit thresholds than conventional. The trade-off is mortgage insurance for the life of the loan in most cases. About 28% of first-time buyers used FHA loans in 2025, down from 55% in 2009 as conventional 3%-down programs have become more competitive.[1]
• VA loans for eligible veterans, active-duty, and surviving spouses require 0% down, no PMI, and have competitive rates.[3] If you are eligible for a VA loan, it's definitely worth exploring.
• USDA Rural Development loans require 0% down for properties in eligible areas, and the eligible map is much bigger than people assume. As Ashley Harris, Director of Homebuyer Education at Neighbors Bank, puts it: "The #1 product I'd point first time homebuyers to is the USDA loan. A common misconception is that it's used for farm land, and it's not. We see buyers shocked to hear that 95% of the United States falls in a USDA-eligible area, and that the home they are looking at falls in one." [Source: Ashley Harris, Director of Homebuyer Education, Neighbors Bank, expert interview, 2025]
• HomeReady (Fannie Mae) and Home Possible (Freddie Mac) offer 3% down conventional loans for income-qualified borrowers, typically up to 80% of area median income.[5]

State and local programs: Every state has a Housing Finance Agency (HFA) running first-time buyer programs, and these often dwarf federal benefits. Jeffrey Hensel, Broker Associate at North Coast Financial, points to California: "California's Housing Finance Agency has down payment grants ranging from 3% to 10%. Many California counties have income limits as high as $180,000 a year. That's not a poor person's program. That's a program that regular working people don't know about." HUD maintains a state-by-state directory of homeownership programs.[10]

Profession-specific programs: Teachers, firefighters, EMTs, and law enforcement officers should look into Good Neighbor Next Door, which offers 50% off list price on HUD-owned homes in revitalization areas in exchange for a three-year occupancy commitment. [11] Many states and cities run their own programs for these professions, too.

Before you assume you can't afford to buy, spend an afternoon researching what's available where you live. The difference between "I need 20% down" and "I qualify for a 3% down conventional with a $10,000 state grant" is whether you buy this year or wait three more to start home shopping.

Step 2: Get preapproved and find an agent

This is where sequencing matters most: lender first, agent second. When you walk into an agent conversation with a real preapproval letter, you've already proven you can buy something, and you've already learned which loan programs and price ranges work for you. Agents take you more seriously, sellers take your offers more seriously, and you stop wasting time looking at houses you can't afford to buy.

Preapproval vs. prequalification

Prequalification and preapproval get used interchangeably, but they aren't the same thing.

Prequalification is a back-of-the-envelope estimate. You tell a lender what you make, what you owe, and what you've saved. They give you a rough range. It takes about 10 minutes, doesn't pull your credit, and isn't worth much when you're making an offer.

Preapproval is the real thing. The lender pulls your credit report, verifies your income with documents, and underwrites you to a specific loan amount. It takes 1 to 3 business days, depending on how quickly you supply the documents.[12]

Sellers and listing agents take preapproval letters seriously. They mostly don't bother with prequalifications.

To get preapproved, your lender will ask for:

• Two years of W-2s and federal tax returns (self-employed buyers need profit-and-loss statements and additional documentation)
• Two months of bank statements for every account you'll use for the down payment and closing costs
• 30 days of recent pay stubs
• Employment verification (your lender may call your employer)
• A photo ID and your Social Security number
• Documentation for any other assets, debts, or sources of income

Get these items ready before your first call. A preapproval is typically good for 60 to 90 days, after which you'll need to resubmit some documents.

Compare mortgage lenders

Talk to at least three lenders before picking one. Rate-shop within a 14- to 45-day window; the credit bureaus treat all those inquiries as a single hit on your score, so you don't pay a credit-score penalty for shopping around.

Compare four things, not just the rate:

1. Origination fees and points: A "low rate" loan can come with thousands of dollars in points. Always look at the APR (which includes fees), not just the headline rate.
2. Lender credits: Some lenders will give you cash toward closing in exchange for a slightly higher rate. Run the math on whether the trade-off works for how long you plan to stay in the home.
3. Closing timeline reliability: Ask each lender what their average time-to-close is and what causes their deals to slip. The cheapest lender on paper isn't worth it if they blow your contract date.
4. Communication style: You're going to be on the phone with this person a lot for the next 30 to 45 days. Trust your gut on responsiveness.

Roby Dorsett, Principal Broker at Dorsett Group Realty in Alabama, says the same principle applies to every part of the transaction: "In real estate, the number one thing is location. Number two is that everything is negotiable. Everything."

That includes lender fees. If one lender quotes a $1,200 underwriting fee and another quotes $700, you can ask the first one to match.

Find a buyer's agent (post-NAR settlement)

This is the part of the process that changed the most recently. The August 2024 NAR settlement reshaped how buyers and agents work together.[13]

What changed:

• You must now sign a written buyer's agency agreement before an agent shows you any home that isn't an open house.[13]
• Buyer's agent compensation is no longer baked into MLS listings the way it used to be. The seller may or may not be offering compensation to your agent, and you may need to cover all or part of it yourself.
• Compensation, contract length, and the scope of services are written into the agreement, and they're all negotiable.

Ryan Fitzgerald, founder of Raleigh Realty, sees the surprise hit first-time buyers regularly: "The biggest surprise is timing. Many first-time buyers do not expect to sign a written buyer agency agreement before touring homes, and they are often surprised that buyer agent compensation is no longer something they can assume is baked in or displayed in a consistent way."

The bigger surprise is what's negotiable. Crystal Olenbush, real estate expert at AustinRealEstate.com, says: "In the wake of the NAR settlement, the greatest shock to first-time buyers is discovering that the buyer's agency agreement is negotiable in several ways. Many people believe that going into an agreement is a non-negotiable document; they are in for quite a surprise when the details surrounding it prove otherwise."

Rami Sneineh, owner at Insurance Navy, lists the specifics: "the way the commission is structured, how long the agreement is (and how many services are being offered) are all things that can be negotiated."

Before you sign with any agent, ask:

• How long have you worked with first-time buyers in this market?
• How many active clients do you have right now?
• How do you handle multiple-offer situations?
• What does your buyer's agreement look like, and which terms are you willing to flex on?
• What's your geographic and price-range scope?
• If this isn't working, how do I exit the agreement?

You don't have to sign on the spot. A reputable agent will give you the agreement to read at home before signing.

Your budget is not your preapproval amount

The amount the lender will approve you for is what you can borrow. Your budget is what you should borrow. They are not the same number.

Fitzgerald has seen what happens when buyers don't make this distinction: "The distinction matters because the touring process creates payment creep. A buyer starts out looking at homes that fit their life, then sees one feature upgrade after another and gradually drifts toward the top of the preapproval range. That can turn into a house that is technically financeable but stressful to own."

Dorsett gives his clients a script to use with their agents: "Rather than saying 'you can buy up to $600,000,' instead we say, 'I want to spend no more than $X,XXX a month' — and we get them to a $410,000 max house search and negotiate to that."

Tell your agent your monthly comfort number, not your maximum approval. They'll show you houses you can actually live in without feeling house-poor.

Step 3: Start house hunting

The median first-time buyer spends 10 weeks searching for a home.[1] You can do it faster, but most buyers underestimate how long it takes to find a house they actually want and can successfully win.

Build your needs list

Sit down with anyone you're buying with and write two columns: must-haves and nice-to-haves. Be honest about which is which.

Must-haves are the things that, if missing, you'd walk away from an otherwise amazing deal. Number of bedrooms, fenced yard for the dog, accessible bathroom for an aging parent, garage in a snowy climate. Nice-to-haves are everything else.

The trap is letting nice-to-haves migrate into the must-have column once you start touring. Updated kitchens are nice. Custom built-in closets are nice. Neither one is going to make or break your quality of life in 18 months. Stick to your list.

Look beyond the house

A great house in the wrong location is still the wrong house. A few things every first-time buyer should check that often go unmentioned:

• Ingress and egress: How do you get out of the neighborhood during rush hour? Master-planned communities with one or two exits onto already-busy streets can turn into 10-minute crawls every morning. Older grid-style neighborhoods often have many more options.
• School district ratings, even if you don't have kids: Schools are one of the biggest drivers of resale value. A house in a strong school district sells faster and at a better price when you go to move.
• Flood zones: Pull the property up on the FEMA Flood Map Service Center before making an offer.[14] If it's in a Special Flood Hazard Area, you'll need flood insurance, which can run thousands a year, and you'll have a smaller buyer pool when you sell.
• Proximity to essentials: Where's the nearest grocery store, ER, fire station? How long is your real commute, not the Google Maps best-case (or worst-case) version?
• Future development: Check the city's planning department for upcoming zoning changes, road projects, or commercial developments that could change the character of the neighborhood.

Drive by before you tour

Listing photos lie. Wide-angle lenses make rooms look bigger, retouching makes paint look fresher, and nobody is going to take a photo of the highway visible from the back deck.

Drive by every property you're seriously considering at three different times: a weekday morning rush hour, a weeknight after dinner, and a Saturday afternoon. You'll learn things the listing won't tell you about traffic, noise, the condition of neighboring houses, and how the street feels when it's busy.

How the current market shapes your strategy

With 30-year rates around 6.37% and tight inventory in most metros, first-time buyers are stretched.[2] In competitive markets, homes routinely sell over asking, sometimes 5%, sometimes 10% or more. If your real budget is $400,000, look at homes listed at $360,000 to $375,000 so you have room to bid up without blowing past your monthly comfort number.

In slower markets, you have more leverage: longer days-on-market, sellers more willing to negotiate price and terms, more inventory to choose from. Your agent should be able to give you sale-to-list ratios for your specific neighborhoods so you know what you're working with.

Step 4: Make an offer

You found the house. Now the strategy gets specific.

Pricing strategy

The list price isn't the offer price. It's a starting point that depends on the market. Before writing your offer, your agent should pull comparable recent sales (typically homes sold within the last 3 to 6 months, within a half-mile radius, of similar size and condition) and look at how the final sales price compared to the initial list price. If similar homes have been selling at 102% of the list price, you're going to need to bid above asking. If they've been sitting and selling under the list price, then you have leverage.

In hot markets, an escalation clause can be useful. It says you'll automatically increase your offer in set increments above any other verified offer, up to a cap you set. This keeps you competitive without forcing you to overpay if there's no bidding war.

Earnest money

Earnest money is your "I'm serious" deposit, held in escrow and applied toward your closing costs at the end. Standard ranges run from 1% to 3% of the purchase price, so $3,750 to $11,250 on a $375,000 home. In competitive markets, going to the higher end of the range can strengthen your offer; in slower markets, 1% is plenty.

Just keep in mind: if you back out of the deal for a reason that isn't covered by your contingencies, you can lose your earnest money. Don't write earnest money you can't afford to walk away from.

Contingencies: When to keep, when to waive

Contingencies are the conditions that let you walk away from a contract without losing your earnest money. They protect you, but in competitive markets, sellers prefer offers with fewer of them. Here's an honest read on each one.

Inspection contingency

The inspection contingency lets you negotiate repairs, request credits, or walk away based on what the inspector finds.

Don't waive this entirely. In hot markets, you can offer to do the inspection "for information only," meaning you still get the inspection but agree not to use it to renegotiate on price. That keeps you competitive while still getting eyes on the property.

Financing contingency

This contingency lets you exit if your loan falls through. Only waive this if you're paying cash or you have rock-solid backup financing.

A surprising number of preapproved buyers see their loan derailed by a job change, a low appraisal, or a credit ding during underwriting.

Appraisal contingency

An appraisal contingency protects you if the home appraises for less than your offer. If you waive this and the appraisal comes in $15,000 short, you could be legally obligated to make up that gap with cash on top of your down payment, or lose your earnest money.

Sale of current home contingency

A home sale contingency says that your offer depends on you selling your current home first. As a first-time buyer, this probably doesn't apply to you. If it does, know that it can make your offer significantly less attractive.

Every waiver is a calculated risk. Inspection waivers protect you from finding deal-breakers. Financing waivers protect you from losing the loan. Appraisal waivers protect you from overpaying. Be clear-eyed about which risks you can absorb and which you can't.

Step 5: Inspections, appraisal, and contract

Once your offer is accepted, you usually have 7 to 14 days to complete inspections and any due diligence. This is the most important window of the entire transaction.

What a general inspection covers, and what it doesn't

A general home inspection is a visual, non-invasive walkthrough of the property's major systems by a licensed inspector. They'll check the structure, roof (visually, from the ground or attic), HVAC, electrical, plumbing, appliances, and visible signs of moisture or pest damage. A thorough inspection takes 2 to 4 hours and typically costs $300 to $500.

What general inspectors don't do: cut into walls, scope sewer lines, climb on roofs in dangerous conditions, perform engineering analysis, or test for things like radon, lead, or mold without specific add-on services. They identify potential problems for further investigation. They don't diagnose them.

Bud Rozell, a certified home inspector, frames it this way: "Home inspectors are generalists who are good at identifying signs of potential problems. The goal of the home inspection is to help the potential buyer to further investigate so they can determine the cost of those problems." That's why specialist inspections can make or break a sale.

When to hire specialists

For most homes, the general inspection is just the starting point. Each specialist inspection runs roughly $150 to $400, and a few hundred dollars in specialist inspections can save you tens of thousands in surprise repairs after closing. Here are some of the most common ones you might see.

Sewer scope

This is recommended on every home, regardless of age. A sewer scope sends a camera down the line from the house to the city main to look for cracks, root intrusion, bellies, or collapsed pipes. Replacing a sewer line can run $5,000 to $25,000.

Reuben Saltzman, CEO at Structure Tech Home Inspections, makes the case bluntly: "The one place where a home inspection is not enough is with the sewer inspection. We've seen enough failed sewer lines on relatively new sewers to recommend sewer inspections on all homes. There is no age of home that's immune to sewer problems, even new construction."

Roof inspection by a roofer

If the roof is more than 10 years old, missing shingles, or showing visible wear, get a roofer up there. Replacing a roof is a $10,000 to $25,000 expense.

HVAC specialist

If the system is over 10 years old, has uneven heating or cooling, or runs constantly, have an HVAC tech evaluate it. They can measure refrigerant levels, check the heat exchanger, and tell you how much life is left in your HVAC system.

Structural engineer

If there are any visible foundation cracks wider than one-quarter inch, sagging floors, or signs of settling, pay the $400 to $700 for a structural engineer's evaluation. They'll tell you whether what you're seeing is cosmetic or expensive.

Electrical specialist

Older homes (1960s and earlier) may have aluminum wiring, knob-and-tube, or undersized panels. A licensed electrician can evaluate the system and quote the cost of upgrades.

Other specialist inspections worth considering depending on the property: termite/pest, radon, mold, and well/septic if the property has them.

Reading the inspection report

Inspection reports run 30 to 80 pages and can read like the world is ending. Most of it is normal wear and minor maintenance. Focus on three categories:

• Safety issues: This means anything that puts the occupants at risk, like exposed wiring, gas leaks, or structural concerns. These are non-negotiable items the seller needs to fix or you walk away.
• Major systems issues: A major system includes the HVAC, roof, foundation, plumbing, or electrical problems with significant repair costs. Decide whether to ask for credits, request repairs, or factor them into your decision.
• Cosmetic and routine maintenance: Scuffs, stuck windows, missing weatherstripping and the like are minor issues. Don't waste your negotiating capital on these.

You typically have a few options after inspection: accept the report and move forward, ask the seller to make specific repairs, ask for a credit at closing instead of repairs, or walk away if the issues are too big. Credits are usually the cleanest path. You get the money and can control the repairs yourself.

The appraisal

Your lender orders the appraisal once your contract is signed. The appraiser determines the home's market value, which the lender uses to verify they're not lending more than the property is worth.

If the appraisal comes in at or above your offer, you're fine. If it comes in low, you have options:

1. Renegotiate with the seller to drop the price to the appraised value.
2. Pay the difference in cash on top of your down payment.
3. Split the difference with the seller.
4. Walk away if you have an appraisal contingency.

In most markets right now, appraisal gaps are less common than they were in 2021 and 2022, but they still happen, especially if you were involved in a bidding war or if the home was priced above comparable properties in the area.

Step 6: Closing

You're 30 to 60 days from contract to keys. Here's what's left.

Final walkthrough

The day of (or day before) closing, you'll do a final walkthrough of the property. This is your last chance to confirm that:

• Agreed-upon repairs were completed
• The seller hasn't damaged the property during their move-out
• All appliances and systems still work (turn on faucets, flush toilets, test the HVAC, check appliances)
• Personal property included in the sale is still there
• Personal property excluded from the sale has been removed

Walk room by room with a checklist. If something's wrong, your agent can renegotiate or delay closing, but you have to catch it before you sign.

Closing cost breakdown: What you're actually paying for

Here's where the "3 to 5%" benchmark falls apart. Let's look at a real $375,000 purchase, 5% down, conventional loan, with a ~6% rate and a $356,250 loan amount.

Lender fees: $4,500 to $5,500

• Loan origination (often 1% of loan): ~$3,500
• Appraisal: $500–700
• Credit report: $50–100
• Underwriting/processing: $400–900

Title and closing services: $1,500 to $2,000

• Lender's title insurance (required)
• Closing/settlement fee
• Attorney fees in attorney-state closings

Government fees: $500 to $800

• Recording fees
• Transfer taxes (varies wildly by state)

Prepaid items and reserves: $3,000 to $4,000

• First year of homeowners insurance (paid at closing)
• Property tax escrow (typically 2 to 6 months)
• Prepaid mortgage interest (depends on closing date)
• Initial PMI premium (if applicable)

Total: $9,500 to $12,300 on a $375K purchase, before any buyer's agent compensation.

Dorsett's real Alabama numbers on a comparable deal track this: "Here are the fees we charge locally in Huntsville, AL. Loan Origination (1% of loan): $3,563. Appraisal: $525. Title insurance and attorney fees: $1,553. Recording fees and deed tax: $668. Prepaid items and reserves: $3,331. That's $10,509 in closing costs before any realtor compensation."

Remember that costs vary by state. Hensel estimates a $375,000 California purchase runs $9,000 to $13,000 in closing costs once you factor in higher origination, escrow, and prepaid expenses.

Buyer's agent compensation, if you're paying it directly, adds another $7,500 to $11,250 on a $375,000 home (at 2% to 3%), though in many transactions the seller still offers compensation that covers part or all of that. Your buyer's agreement, signed in Step 2, spells out exactly what you're on the hook to pay.

Wire fraud prevention

Wire fraud in real estate transactions is one of the most common and most devastating fraud categories. Scammers monitor email exchanges between buyers and title companies, then send a spoofed email with new wire instructions just before closing. By the time you realize what happened, the money is gone.[15]

Protect yourself with three rules:

1. Verify wire instructions verbally: When you get wire instructions from your title company or attorney, call them at a phone number you already know from their business card or a previous email, and confirm the instructions person-to-person. Never use a phone number provided in the wire instructions email itself; that number could be the scammer.
2. Be suspicious of last-minute changes: Real wire instructions don't change at the last minute. If you get an email saying instructions have been updated, treat it as fraud until proven otherwise.
3. Send the wire in person if you can: Going to your bank in person to send the wire lets you verify everything one more time with a banker. Banks may also flag and pause transfers above $10,000 for a verification call. That's a feature, not a bug.

If you do everything right and the wire still feels off, slow down. Closings can be delayed a day. But your bank can't undo a fraudulent wire transfer.

What you'll sign

Closing day involves a stack of documents you've never seen and probably won't read in detail. The two most important:

• The Closing Disclosure (CD): Federal law requires you to receive this at least three business days before closing.[16] It lists every penny of your loan, your closing costs, and your monthly payment. Compare it line-by-line against your initial Loan Estimate. Any unexpected changes should be questioned immediately.
• The promissory note and mortgage/deed of trust: These are the documents that obligate you to repay the loan.

Bring a government-issued photo ID, your homeowners insurance policy, and your wire confirmation or cashier's check for any cash to close not covered by the wire.

Step 7: Move in and settle down

Closing isn't the finish line. It's a starting line.

In the first 30 days, you should:

• Change the locks or rekey them. You don't know how many copies of the previous owners' keys are floating around.
• Reprogram garage door openers and any smart-home access codes.
• Locate the main water shutoff, gas shutoff, and electrical panel. If something breaks at 2 a.m., you need to know where these are.
• Test all smoke and carbon monoxide detectors and replace batteries or units if they're old.
• Change the HVAC filter and schedule a service appointment for the system.
• File your homestead exemption with the county assessor's office (where applicable). This can lower your property tax bill significantly, and there's usually a deadline tied to your purchase date.
• Update your address with the post office, your bank, your employer, the IRS, and the DMV.
• Set up utilities in your name and confirm previous account closures.

Build a maintenance reserve

Most experts suggest budgeting 1% to 3% of your home's value annually for maintenance and repairs. On a $375,000 home, that's $3,750 to $11,250 a year, or $300 to $940 a month.

Set up a dedicated savings account for this and contribute monthly. The first year often requires more money spent on maintenance because you'll be personalizing the house (paint, fixtures, small upgrades) on top of any unexpected repairs. Don't blow your reserve on cosmetic projects in month two and then have nothing but a depleted home maintenance fund to tap when the water heater fails in month nine.

For first-year homeowner tax considerations, see IRS Publication 530, which covers what's deductible (mortgage interest, property taxes within limits) and what isn't (most maintenance, improvements until you sell).[17]

Set realistic expectations

The first six months in a new house can be rough. You'll find issues the inspection missed. You'll discover the way you live actually doesn't match the way you envisioned yourself in the house. You may have buyer's remorse around month three, when the honeymoon energy fades and the maintenance reality sets in.

Taylor Szostak, founder of San Diego Military Real Estate, validates the emotional reality: "Buying your first home is a big step. It can feel exciting, like opening a new door in your life, but it can also feel stressful because there are many things to think about: budget, loans, closing costs, realtor agreements, and home inspections."

Some second-guessing is normal and doesn't mean you made the wrong choice. Give yourself a year before evaluating whether the house was right. Most of the things that feel huge in month two will be background noise by month twelve.

The equity you're building, even on a 6.37% loan, beats the long-term cost of waiting. NAR's research suggests that buyers who delay homeownership from age 30 to 40 lose roughly $150,000 in equity on a typical starter home, money that's much harder to make up later.[1]

An experienced agent can be your best asset when you're buying your first house. To find top agents in your area, take a short quiz, and Clever can introduce you to agents from our extensive network of experts.

FAQ