Buying Your First House

You're about to make the biggest purchase of your life and yes, it involves a terrifying amount of paperwork and people you've never met asking how much money you make. But millions of slightly-less-organized people have done this, and so can you. Take it phase by phase and you'll get keys to a place that's actually yours.

hard ⏳ 3-6 months
✅ Open the interactive version checkable tasks · progress tracking · weekly email nudges

The plan

Get Your Money Right

Months 1-2 (or earlier, honestly)
  • Check your credit score — Pull your free report at annualcreditreport.com. Lenders care a LOT about this number — above 740 gets you the good interest rates, below 620 makes things rough.
  • Calculate what you can actually afford — A rough rule: your total monthly housing cost should be under ~28% of your gross monthly income. Use an online affordability calculator and be honest, not aspirational.
  • Save your down payment — You don't need 20% (that's a myth) — some loans go as low as 3-3.5% down. But less than 20% means you'll pay PMI (private mortgage insurance, an extra monthly fee that protects the lender, not you).
  • Stash a closing-cost cushion — Closing costs run 2-5% of the home price on TOP of your down payment. People forget this and then panic. Don't be those people.
  • Stop opening new credit — Don't finance a car or open a new card right before buying. New debt tanks your approval. Just sit on your hands financially for a few months.

Get Pre-Approved

Month 2
  • Gather your financial paperwork — Pay stubs, two years of tax returns, W-2s, bank statements. Lenders want receipts for your entire financial existence. Make a folder now.
  • Shop at least 3 lenders — Get quotes from a bank, a credit union, and an online lender. Rates and fees vary more than you'd think — shopping around can save you thousands.
  • Get a pre-approval letter — This is a lender saying 'we'll loan this person up to $X.' Sellers won't take you seriously without one. It's basically your house-hunting hall pass.
  • Understand your loan options — Conventional, FHA, VA, USDA — each has different down payment and credit rules. Ask your lender which fits you. VA and USDA can mean zero down if you qualify.

Find The House

Months 2-4
  • Hire a buyer's agent — A real estate agent who represents YOU, usually paid via the deal so it's typically free to you. They handle showings, negotiations, and the avalanche of forms.
  • Make a needs-vs-wants list — Separate dealbreakers (commute, number of bedrooms) from nice-to-haves (granite counters). Keeps you from falling for a pretty kitchen in a terrible location.
  • Tour homes in person — Photos lie. Go see them, check water pressure, open windows, listen for road noise, and notice if the 'cozy' bedroom is actually a closet.
  • Research the neighborhood — Drive by at night and during rush hour, check commute times, schools, and flood zones. You're marrying the neighborhood, not just the house.
  • Make an offer — Your agent helps you price it based on comparable sales ('comps'). In a hot market expect to compete; in a slow one you can negotiate harder.

Under Contract

30-45 days after offer accepted
  • Submit your earnest money — A good-faith deposit (usually 1-3% of price) that says you're serious. It goes toward your purchase later — you don't lose it unless you bail for no valid reason.
  • Order a home inspection — Pay a pro to crawl through the house and find problems. They WILL find problems — that's the job. Use the report to negotiate repairs or price.
  • Let the appraisal happen — Your lender hires an appraiser to confirm the house is worth what you're paying. If it appraises low, you renegotiate or cover the gap in cash.
  • Lock your interest rate — Rates move daily. When you see a rate you like, ask your lender to 'lock' it so it can't rise before closing.
  • Buy homeowners insurance — Required before closing. Shop a couple quotes — and bundle with auto if you want to save a few bucks.
  • Avoid big financial moves — Don't change jobs, buy furniture on credit, or move money around weirdly. Lenders re-check everything right before closing and will absolutely freak out.

Closing & Keys

Day of (and the days right before)
  • Review your Closing Disclosure — You get this document 3 days before closing with all final numbers. Compare it to your original loan estimate and question any new fees.
  • Do the final walkthrough — Within 24 hours of closing, walk the empty house to confirm agreed repairs are done and the seller didn't take the light fixtures. It happens.
  • Wire your closing funds carefully — You'll wire your down payment and closing costs. Call the title company using a verified number to confirm wire instructions — wire fraud is a real scam (see watch-outs).
  • Sign approximately 400 documents — At closing you sign until your hand cramps. Read what you can, ask questions, and don't sign anything that surprises you.
  • Get the keys and celebrate — That's it. You own a house. Order a pizza on the floor like every new homeowner before you. You earned this.

💸 What it costs

Down payment3-20% of price. On a $300k home that's $9k (FHA) to $60k (full 20%). The big one.$9,000-$80,000+
Closing costs2-5% of price — lender fees, title, taxes, all the little stuff that adds up fast.$6,000-$15,000
Home inspectionBest money you'll spend. Add $100-$300 each for radon, sewer, or pest inspections.$300-$600
AppraisalLender requires it; usually paid upfront or rolled into closing.$400-$700
Homeowners insuranceFirst year often paid at closing. Higher in flood/fire/hurricane zones.$1,200-$2,500/year
Earnest money deposit1-3% upfront, but it's credited back toward your purchase — not a separate cost.$3,000-$9,000
Moving costsDIY truck rental to full-service movers. Plus the snacks you'll bribe friends with.$300-$3,000
Immediate move-in stuffThe sneaky budget killer: cleaning, paint, a lawnmower, tools, and 9,000 trips to the hardware store.$500-$3,000
Total ballpark$20,000-$110,000+ upfront depending on home price and down payment

🚩 Watch out for

Wire fraud is the scariest scam in real estate. Crooks send fake 'updated wire instructions' by email. ALWAYS call the title company at a number you looked up yourself before sending money.
Don't skip the inspection to win a bidding war. Waiving it can save the deal but cost you $30k in surprise foundation repairs.
Getting pre-qualified is NOT the same as pre-approved. Pre-approval involves real document checks and actually means something to sellers.
Don't max out your budget just because the bank approves it. Lenders approve more than you should comfortably spend — leave room for life.
Buying a car or furniture on credit before closing can blow up your loan. The lender re-checks your finances right before closing.
The inspector will find problems. That's literally their job. A long report doesn't mean the house is doomed — focus on big-ticket safety and structure items.
Property taxes and insurance can rise yearly, raising your monthly payment even on a 'fixed' mortgage. Budget for it.
For gas, electrical, roofing, or major plumbing issues found in inspection — get a licensed pro to quote repairs before you negotiate. Don't eyeball a furnace.
This is general info, not financial or legal advice. For your specific situation, talk to your lender, agent, or attorney.
HOA fees can be brutal and have rules about everything from paint colors to garbage cans. Read the HOA documents before you commit.

General information, not legal, financial, or medical advice. Generated by Adultish — make your own playbook for any adulting goal.