mortgage · 8 MIN
First-time homebuyer checklist (2026)
Steps, costs, and documents to gather before you apply for a mortgage.
1. Check your credit and budget
Pull your credit reports, fix errors, and estimate a comfortable monthly payment including taxes and insurance—not just principal and interest.
2. Save for down payment and closing costs
Many buyers need 3–20% down plus closing costs (often 2–5% of the purchase price). A larger down payment can reduce PMI and monthly cost.
3. Get pre-approved (not just pre-qualified)
Pre-approval usually involves a credit check and document review. It strengthens offers and clarifies your real budget.
4. Compare APR, not only rate
APR includes many loan costs. Compare lender fees, points, rate lock length, and whether the loan is fixed or adjustable.
5. Plan for the first year of ownership
Budget for maintenance, utilities, HOA dues, and an emergency fund. Homeownership costs more than the mortgage payment alone.
FAQ
How much house can I afford?
A common starting point is keeping total housing costs near 28% of gross income, but your debt, location, and risk tolerance matter more than rules of thumb.
Should I pay points to lower the rate?
Points can make sense if you will keep the loan long enough to break even. Run the math with our mortgage calculator before deciding.
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