First Time Home Buyer Checklist: Your Complete 2025 Roadmap to Homeownership

Buying your first home in 2025 is one of the most rewarding milestones you’ll ever hit—equal parts exhilarating and overwhelming. With mortgage rates stabilizing around 6.5-7% (per Freddie Mac’s latest averages), inventory creeping up in many metros, and new federal incentives for first-timers, the timing has rarely been better. But the process is still a marathon, not a sprint. This guide distills everything into an actionable first-time home buyer checklist, updated for today’s market, so you can move from renter to owner with confidence.

Step 1: Run the Numbers – Affordability Reality Check

Start with a brutally honest financial audit. Pull your free credit reports from AnnualCreditReport.com and aim for a FICO® score of 620+ (740+ for the best rates). Use an online mortgage calculator to plug in current 30-year fixed rates (6.75% as of mid-November), your gross monthly income, recurring debts (student loans, car payments), and a 3-6 month emergency fund target.

Rule of thumb: Your total housing payment (PITI: principal, interest, taxes, insurance, HOA) should not exceed 28% of gross income; total debt-to-income (DTI) ≤ 43%. Example: $85,000 household income → $1,985 max PITI → ~$350,000 purchase at 7% with 3% down. Save for closing costs (2-5% of price) and a 3.5% FHA or 3% conventional down payment. Pro tip: Open a high-yield savings account (4.5%+ APY) dedicated to your “house fund.”

Use our Affordability Calculator

Step 2: Build Your Wish List & Deal-Breakers

Paper beats memory. Create a two-column list:

Step 3: Get Pre-Approved, Not Just Pre-Qualified

Pre-qualification is a five-minute chat. Pre-approval requires pay stubs, W-2s, tax returns, bank statements, and a hard credit pull—resulting in a conditional commitment letter stating exactly how much a lender will loan you. In multiple-offer scenarios, sellers treat pre-approval like cash. Shop at least three lenders (local credit union, online fintech, big bank) within a 45-day window to minimize credit dings. Lock a rate float-down if rates are trending lower. Bonus: Many lenders now offer digital pre-approvals in under 24 hours.

Step 4: Hire a Buyer’s Agent (and Understand Who Pays)

Good news—the seller typically pays your agent’s 2.5-3% commission, even after the 2024 NAR settlement. Interview three agents via video call. Ask:

• “How many first-time buyers did you close last year?”
• “What’s your average list-to-sale ratio?”
• “Can you connect me with lenders and inspectors?”

Look for the ABR® (Accredited Buyer’s Representative) designation. Sign a buyer-broker agreement spelling out services and any minimum commission you’d owe if the seller offers zero (rare).

Step 5: House Hunting – Boots on Ground & Data in Hand

Your agent sets up MLS alerts within 5% of pre-approval. Attend open houses incognito first—feel the vibe without pressure. Bring a checklist:

• Natural light & traffic noise
• Water pressure & HVAC age
• Cell signal & flood zone (FEMA maps)

Photograph electrical panels, attic insulation, and any cracks. Use the “5-Year Rule”: Will this home still work if you get married, have a kid, or switch to remote work? In cooling markets, homes sit 30-45 days; you have leverage. In hot ZIP codes (think Austin suburbs or Raleigh exurbs), set alerts for “coming soon” listings and pounce within hours. Get tips on effective house hunting.

Step 6: Craft a Winning Offer

Your agent pulls comps (sold homes within 0.5 mile, same beds/baths, past 90 days). Structure the offer:

Step 7: Inspection – Hire Your Own Detective

Never waive inspection, even in “as-is” sales. Budget $400-$700 for a licensed inspector (ASHI or InterNACHI certified). Schedule during daylight; attend in person. Red flags:

• Roof <5 years life left
• Foundation cracks >¼ inch
• Knob-and-tube wiring or polybutylene pipes
• Sewer line scope reveals roots or bellies ($150 add-on)

Receive a 20-40 page report with photos. Minor items ($500 furnace tune-up) are normal; major items ($15k foundation) become renegotiation ammo. Dive deeper into home inspections.

Step 8: Appraisal & Renegotiation

Lender orders appraisal ($500-$800, you pay). If value comes in low (say $380k on a $400k contract), you have options:

1. Renegotiate – Ask seller to drop to appraised value.
2. Bridge the gap – Bring extra cash to closing.
3. Challenge – Submit better comps (your agent helps).
4. Walk – If appraisal contingency is intact.

In 2025, appraisers are swamped; expect 10-14 day turnaround. Use this window to line up homeowners insurance quotes (average $1,800/yr nationwide, higher in coastal zones).

Step 9: Final Underwriting & Closing Prep

Underwriter triple-checks income, assets, and property. Supply any last docs within 24 hours to avoid delays. Order a final walk-through 24-48 hours before closing—confirm no new damage and repairs were completed. Closing disclosure arrives three business days prior; line-by-line review:

• Loan amount & interest rate
• Prepaids (taxes, insurance escrows)
• Cash-to-close (wire, not cashier’s check in most states)

Sign with a notary or via remote online notarization (RON) in 40+ states. Bring photo ID and a smile. Prepare with our closing day checklist.

Step 10: Close, Celebrate, and Protect Your Investment

At the table (or e-closing portal), you’ll sign 50-100 pages. Funds wire; keys are yours. Immediately:

1. Change locks & garage codes.
2. Set up utilities in your name.
3. File for homestead exemption (saves $500-1,500/yr in property taxes in many states).
4. Schedule HVAC tune-up and pest inspection.

Throw a low-key pizza party—your first night in your home.

Conclusion: Metropolitan Mortgage Is Here to Help

The journey to homeownership is full of questions, paperwork, and pivotal decisions—but you don’t have to navigate it alone. At Metropolitan Mortgage Corporation, we specialize in guiding first-time buyers through every step, from pre-approval to closing and beyond. Our experienced loan officers, like Rick Woodruff in Overland Park, KS, offer personalized rate quotes, down payment assistance options, and 24/7 support. Contact us today for a no-obligation consultation, and let us turn your dream of owning a home into reality.