Are you planning to buy a new home? In 2024, only 28% of Americans who wanted to purchase their first home actually bought one. After all, buying your first house is exciting, but it can be very overwhelming as well. You have to take care of mortgage preparation and budget. There’s a lot to unpack. This comprehensive checklist will tell you what you need to know before buying a house for the very first time in 2025.
1. Check Your Financial Readiness
You can start by reviewing your finances. Your credit score must be 620+, since it’ll affect your mortgage rate and loan approval. Higher scores will get you better rates. Your debt-to-income or DTI ratio needs to be below 43% (36% = ideal). You must also save for a down payment as well as closing costs. 20% down is ideal! Also, closing costs can be 2% to 5% of the total price of the house. Once you have these financial considerations in check, we can take the next step.
2. Get Pre-Approved for a Mortgage
You can get pre-approved by a lender, too. It’ll give you a clear picture of your budget. Also, the seller will see you as a serious buyer when you have taken these proactive steps. You have to submit your financial documents first for pre-approval. Give your lender your credit information and estimate how much to borrow.
- FHA loans require lower down payments
- Conventional loans (the go-to option)
- VA loans work for veterans
3. Define Your Homebuying Priorities
We’re not at viewing homes just yet. First, you should clarify what you want in an ideal home that makes the most sense for your family’s unique needs.
- Create a wishlist of essentials like bedroom/bathroom count, single or two-story, yard size, etc.
- Research different neighborhoods based on commute times, school districts, amenities, and future developments.
- Are there any family parks located nearby? What about shopping malls? Does the local area look like an atmosphere you can see yourself enjoying for a while?
4. Assemble Your Homebuying Team
You don’t buy a home alone; you’ll have ample support to provide you with expert advice and considerations along the way. People to consider for home buying help:
- Realtor: A real estate agent is a trusted partner that many homebuyers hire to help remove some stress from the process. They find properties for you and negotiate offers.
- Mortgage Lender: The lender will aid in financing options and loan approval to prepare you for closing on the home.
- Sales Counselor: At every one of our new home communities, an experienced sales counselor will assist you at every step of the home buying experience from first walk-in to move-in day.
- Construction Manager: The designated construction manager at you knew community will keep you updated with building stages and completion timeline, along with meeting you for home walk-throughs.
5. Understand How a House is Purchased
Did you know that 1 in 4 homebuyers in the United States are buying a place for the first time? Many first-time homebuyers are Millennials who don’t know exactly how this process goes. Well, it involves these four crucial steps:
| 1 | 2 | 3 | 4 |
| Make an Offer | Inspecting the Place | Appraisal and Financing | Closing on the Property |
| You’ll find an ideal home and then make an offer the seller just can’t refuse (with contingencies). | You then schedule an inspection to spot any repairs and negotiate the price of the house. | Your lender will order an appraisal to confirm the true value of the home and finalize the loan. | After reviewing and signing the paperwork, you get the keys to your new home. |
6. Budget for Extra Costs
Owning a home is more than paying your mortgage. You should save for additional costs that come with buying/building a home. For instance:
- Property taxes and insurance
- Moving and packaging services
- Homeowners Association (HOA) fees (if applicable)
- Utilities (gas, water, electricity, routine upkeep, etc.) and maintenance
7. Ask the Right Questions
Lastly, you should ask the right questions. Whether you’re buying a home or building one, these questions are all must-ask:
- What warranties are included in this home?
- Are there any customization options available?
- Does this home offer energy-efficient features?
- Are there any new community developments to look at?
- How long is the estimated construction or closing timeline?
Final Thoughts
Are you finally ready to become a first-time homebuyer? It’s a complex but rewarding process. A new house will be your sanctuary where you’ll feel safe. If you don’t know where to look for your next residence, get in touch with us at UnionMane Homes, and we’ll help locate your dream home. Buy your residential space in Atlanta and Dallas confidently with the best local realtors.
