First-Time Home Buying Checklist: 12 Steps to Buying Your First Home

Key takeaways: Set a realistic budget that accounts for upfront and ongoing costs. Get pre-approved and find an agent before starting your home search. Protect yourself with inspections, contingencies, and a careful review before closing. Buying your first home comes with a lot of steps, from figuring out what you can afford and getting pre-approved to making an offer, completing an inspection, and finally closing on your home. It can be easy to lose track of what comes next. This first-time home buying checklist walks you through the process step by step, so you know what to expect from pre-approval to getting the keys. 1. Calculate your affordability and debt-to-income (DTI) Before you start looking at homes, figure out how much you can comfortably afford each month. Your housing costs can include more than your mortgage payment, so account for property taxes, homeowners insurance, HOA fees, and ongoing maintenance. Lenders will also look at your debt-to-income (DTI) ratio, or how much of your monthly income goes toward debt payments. As a general guideline, the 28/36 rule suggests spending no more than 28% of your gross monthly income on housing and 36% on all debts combined. Af...