Buying your first home is exciting — but it can also feel overwhelming. The mortgage process includes multiple steps, documents, and financial reviews.
This first-time buyer purchase mortgage checklist walks you through exactly what to prepare before making an offer, during underwriting, and before closing — so you can avoid delays and surprises.
If you’re new to home buying, this guide will help you stay organized and confident.
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Step 1: Financial Preparation Before Pre-Approval
Before speaking with a lender, review your financial foundation.
Check Your Credit
- Review your credit report
- Confirm there are no errors
- Avoid opening new credit accounts
- Avoid large purchases on credit
Even small credit changes can impact qualification.
Review Your Monthly Budget
Calculate:
- Estimated mortgage payment
- Property taxes
- Homeowners insurance
- HOA (if applicable)
- Utilities and maintenance
Understanding your full housing cost helps prevent overextending.
Save for Down Payment and Closing Costs
Depending on your loan type, you may need:
- Down payment funds
- Closing costs
- Emergency reserves
Some programs allow gift funds, subject to documentation.
→ Read more: First Time Buyers Loan for Low Credit Scores
Step 2: Pre-Approval Document Checklist
Getting pre-approved before shopping strengthens your offer.
Prepare:
Income Documents
- Recent pay stubs
- W-2 forms (usually past 2 years)
- Tax returns (if self-employed)
Asset Statements
- Bank statements (usually last 2 months)
- Investment account statements (if applicable)
Identification
- Government-issued ID
- Social Security verification
Debt Information
- Credit card balances
- Auto loans
- Student loans
Pre-approval is not final approval — but it gives you clarity on estimated buying power.
→ Read more: Latest First Time Home Buyer Loan Requirements
Once pre-approved:
- Stay within your approved budget
- Avoid changing jobs during escrow
- Avoid new debt
- Keep documentation organized
Small financial changes during escrow can delay closing.
Step 4: Under Contract Checklist
After your offer is accepted:
Property Appraisal
The lender will order an appraisal to confirm the home’s value.
Updated Documentation
You may be asked for:
- Updated pay stubs
- Additional bank statements
- Explanation letters (if needed)
Responding quickly helps keep your timeline on track.
Step 5: Before Closing
Before you sign final documents:
- Review Closing Disclosure carefully
- Confirm cash-to-close amount
- Avoid large deposits without explanation
- Do not open new credit accounts
Your lender may perform a final credit check before closing.
Common First-Time Buyer Mistakes to Avoid
X Financing furniture before closing
X Switching jobs mid-process
X Ignoring total monthly housing cost
X Not comparing loan programs
Preparation reduces stress and surprises.
Choosing the Right Loan Program
As a first-time buyer, you may qualify for:
- Conventional purchase loan
- FHA loan
- VA loan (if eligible)
- USDA loan (if location qualifies)
Each program has different down payment and mortgage insurance structures.
Comparing them side by side helps you make an informed decision.
Why Choose Loan Factory for Your First Home Purchase?
Buying your first home is a big step — having the right guidance matters.
Here’s why many first-time buyers choose Loan Factory:
- Best Price Guarantee: Bring us any competitor’s official offer. If we can’t beat it, we’ll pay you $1,000. Terms & Conditions apply.
- Zero application or junk fees
- Side-by-side comparison of 240+ wholesale lenders
- Local loan advisors for personalized support
- AI-powered MOSO platform for real-time pricing and faster approvals
- Trusted guidance led by Thuan Nguyen, the #1 Loan Officer in the U.S.
Instead of guessing which loan fits best, you get structured options and clear next steps.
Ready to Start Your First Home Purchase?
If you're preparing to buy your first home, the smartest next step is getting pre-approved and reviewing your options.
Apply online: https://www.LoanFactory.com/apply
Compare refinance options: https://www.LoanFactory.com/quote
Set up a rate alert: www.loanfactory.com/mortgage-rate-alert
For faster support, call or text (660) 333-3333
A no-pressure review can help you move forward with confidence.
Based on real-world jumbo loan scenarios reviewed by Loan Factory’s lending team across multiple high-cost markets.
This content is for informational purposes only and not a commitment to lend. Loan approval depends on credit, income, assets, property eligibility, underwriting review, and investor guidelines.
First-Time Buyer Purchase Mortgage Checklist FAQs
