First-time buyer checklist

Write down a monthly housing number you can keep paying, not only the maximum a formula might allow. Include the principal and interest, taxes, insurance, and any HOA or mortgage insurance. The calculator on this site is a way to test those pieces.

Pull your credit reports and correct errors before a lender does. Gather recent pay stubs, W-2s or tax returns, and bank statements. Lenders ask for those because income and assets have to be documented, not estimated.

A preapproval is a lender’s conditional look at your finances. It is not a promise to fund a specific house, and it is not something this site can issue. You apply with a lender or broker you choose.

When you make an offer, the contract sets price, contingencies, and timing. An inspection contingency is the usual way to learn what the house needs before you are obligated to buy. An appraisal, ordered through the lender, is a separate opinion of value used for the loan.

After you apply, the lender must provide a Loan Estimate. Read the rate, the monthly payment, cash to close, and the comparison box on page 3. Ask about any fee you do not recognize before you pay for an appraisal.

A few days before closing you receive a Closing Disclosure. Check it against the Loan Estimate. Walk through the final cash figure, the rate, and whether the loan has a prepayment penalty or an adjustable rate. Bring the identification and funds the closing agent specifies.