Important Legal Notice
Disclaimer: This article provides general educational information about home buying in the United States and should not be construed as legal, financial, tax, or real estate advice. Real estate laws, mortgage regulations, tax codes, and lending requirements vary by state, county, and municipality and are subject to change.
Professional Consultation Required: Before making any financial decisions related to purchasing real property, you must consult with licensed professionals, including but not limited to:
- A licensed real estate attorney admitted to practice in your state
- A licensed real estate agent or broker
- A qualified mortgage lender or loan officer
- A certified public accountant (CPA) or tax advisor
- A licensed home inspector
Verify Current Laws: Federal, state, and local real estate laws change frequently. Always verify current regulations on official government websites, including HUD.gov, ConsumerFinance.gov, and your state's official real estate commission website before proceeding with any transaction.
No Attorney-Client Relationship: Reading this article does not create an attorney-client relationship, professional advisory relationship, or fiduciary duty of any kind.
Information Currency: Laws, regulations, tax rates, lending criteria, and government programs are subject to frequent changes. Information presented may become outdated. Always verify current information through official sources and licensed professionals.
No Liability: While reasonable efforts have been made to provide accurate information, no warranty is given regarding completeness, accuracy, or currency of the information. Use of this information is entirely at your own risk.
Buying a home is one of the biggest money choices you will ever make. Following a clear home buying checklist helps you make smart choices and avoid costly mistakes.
The Consumer Financial Protection Bureau (CFPB) says good home buying tips need careful prep, solid finances, and a close look at each property. See our complete first time home buyer guide for additional guidance. Use this checklist along with HUD.gov guides to stay on track.
Common ways people start:
- Getting pre-approved for a loan first
- Browsing listings online
- Calling a Realtor right away
- Looking at their finances and the market
The smartest path starts with knowing your money situation and watching the market before you tour homes. Good prep makes you stronger at every stage.
Two Approaches to Home Buying
The basic path: Agent → Pre-approval → House hunting → Offer → Close
The smarter path: Market research → Fix your finances → Pre-approved → Smart search → Strong offer → Close
Doing your homework before you tour homes helps you know your budget, find the right places, and bargain well. This house buying checklist starts with preparation.
Home Buying Checklist Steps 1-3: First Look (Week 1)
Step 1: Study the Market Learn what is happening in your target area. The Federal Housing Finance Agency (FHFA) has data on home prices. Freddie Mac and Fannie Mae share market reports. Look at how many homes are for sale, how fast they sell, and how prices are moving.
Step 2: Should You Rent or Buy? Figure out if now is the right time for you. The CFPB offers guidance on this choice. Think about: down payment funds, monthly costs, taxes, insurance, upkeep (about 1-2% of the home's value per year), HOA fees, closing costs, and how long you plan to stay. If you may move in less than 5–7 years, renting could make more sense.
Step 3: Check Your Credit Review your credit before you talk to lenders. Consumer.ftc.gov says you can get free reports from the three main credit bureaus. Knowing your score helps:
- Score 740+: You get the best rates
- Score 640-739: Good rates, room to improve
- Score below 640: Work on your credit first
Strong finances before house hunting lead to better loan terms and bargaining power. Review questions to ask when buying a house before you start touring to ask the right questions.
House Buying Checklist Steps 4-8: Get Your Money Ready (Weeks 2-4)
Fixing your finances before you shop improves your loan terms and buying power.
Step 4: Plan Your Down Payment Different down payment sizes have different effects:
- 20% down: Best rates, no PMI (private mortgage insurance)
- 10-15% down: Good rates, PMI required
- 3-5% down: FHA/VA/USDA programs available, higher PMI
HUD.gov says FHA loans need as little as 3.5% down. The VA offers zero-down loans for eligible veterans. USDA offers zero-down loans for rural homes.
Step 5: Get Pre-Approved Get pre-approved (not just pre-qualified) before touring homes. The CFPB says to shop 3–5 lenders to compare rates and terms. Even small rate differences add up over 30 years.
Step 6: Set Your Budget Lenders may approve you for more than you should spend. Keep housing costs below 28% of gross monthly income and total debt below 36%. Leave room for the unexpected.
Step 7: Save Extra Cash Beyond your down payment, budget for:
- Closing costs (2-5% of the price)
- Moving costs
- Repairs or upgrades
- Emergency fund (6 months of costs is best)
Being stretched too thin makes owning a home stressful.
Step 8: Look for Buyer Programs Check what help is out there. HUD's First-Time Buyer page lists federal, state, and local programs. Many states offer down payment help, grants, or tax breaks. The National Council of State Housing Agencies shows what each state offers.
Home Buying Checklist Steps 9-15: House Hunting (Weeks 5-10)
Good house hunting needs clear goals and careful review. This part of the house buying checklist helps you spot the right home.
Step 9: Make Your Lists Write two lists: must-haves and nice-to-haves. Must-haves might include location, number of bedrooms, price range, and school district. Nice-to-haves are things you want but can flex on. Clear lists save time.
Step 10: Research Areas Before you tour homes, learn about your target areas:
- FBI Crime Data Explorer - crime stats
- NCES School Locator - school info
- Census.gov - population and economy data
- Local government sites for zoning and tax details
Step 11: Read Listings Carefully Know what common listing phrases really mean:
- "Cozy" often means small
- "Needs TLC" means repairs needed
- "Motivated seller" may mean room to bargain
- Recent price cuts suggest flexibility
- Fresh paint may hide problems
Step 12: Use Virtual Tours Check photos, videos, and virtual tours online first. This saves time by showing you which homes are worth a real visit.
Step 13: Tour in Person Visit your top picks in person. Bring a checklist, take photos and notes, and measure rooms if needed. Know what to look for when buying a house during each viewing. Limit visits to 2–3 a day, so you stay focused.
Step 14: Compare Properties After each tour, rate the home against your list. Compare homes using your notes, photos, and numbers. This keeps your choices clear.
Step 15: Look Up Property History Check how long a home has been listed, any price changes, and public records. This info shapes your offer and bargaining.
Buying a House Checklist Steps 16-19: Making an Offer (Weeks 11-13)
When you find the right home, following this part of your home buying checklist ensures a smart offer.
Step 16: Pick Your Offer Price Research what similar homes have sold for in the area. Your agent can pull this data, or check public records. Think about:
- Recent sales of similar homes nearby
- Is it a buyer's or seller's market?
- The home's condition and needed repairs
- How long has it been listed?
- Your max budget and walk-away price
The FHFA House Price Index shows price trends by region.
Step 17: Include Protection Terms Add standard protections to your offer:
- Home inspection contingency - lets you negotiate or walk away based on findings
- Appraisal contingency - protects if the home appraises below your offer
- Financing contingency - lets you exit if your loan falls through
- Title contingency - ensures clear ownership
The CFPB explains these terms.
Step 18: Make Your Offer Strong Stand out by:
- Showing your pre-approval letter
- Providing proof of funds if asked
- Being flexible on closing dates
- Writing a personal letter to the seller (if fitting)
Step 19: Negotiate Well Be ready to bargain on:
- Purchase price
- Closing costs
- Repairs or credits
- Closing date
- What stays with the home
Know your limits. Be ready to walk away if needed.
House Buying Checklist Steps 20-23: Closing (Weeks 14-18)
These final home buying checklist steps protect your investment.
Step 20: Home Inspection Checklist 156 Items Hire a pro inspector (about $300-500). The CFPB says inspections catch issues before you commit. Review our detailed home inspection checklist 156 items to catch red flags buying house and understand what inspectors check. Go to the inspection, ask questions, and use findings to:
- Ask for repairs or credits
- Negotiate the price
- Walk away if big problems appear
Do not skip this step to save money.
Step 21: Appraisal Review Your lender orders an appraisal to confirm the home's value. If the appraisal is below your offer, you can:
- Ask for a lower price
- Pay more down to cover the gap
- Challenge the appraisal with sales data
- Walk away using your appraisal contingency
Step 22: Final Walk-Through Visit the home 24–48 hours before closing to check:
- The home is in the agreed shape
- All repairs are done
- Everything that stays with the home is there
- No new damage
For new construction, use our comprehensive new home walkthrough checklist with 127 items to inspect before closing.
This is your last chance to raise issues.
Step 23: Review Closing Papers Federal law says you must get the Closing Disclosure at least 3 days before closing. The CFPB Closing Disclosure guide explains what to check:
- Loan terms match your approval
- Costs match estimates
- No surprise fees
- Taxes and insurance are correct
- Title coverage is right
Tell your lender right away if you find mistakes.
Complete Your Home Buying Checklist
Following this buying a house checklist helps you make smart choices and avoid traps.
More Resources:
- HUD Buying a Home - Federal resources
- CFPB Buying a Home - Tools and guides
- Freddie Mac CreditSmart - Free buyer education
- USA.gov Home Buying - Government help
- IRS Tax Benefits - Homeowner tax breaks
Taking time to research, prep your finances, and check homes carefully protects your investment. This 23-step house buying checklist gives you a plan for buying with confidence.