First-Time Home Buyer Checklist: 10 Steps With the Real Numbers Attached

The 10 steps, in order

Most first-time buyers do these steps out of order, then pay for it. Here's the sequence that actually works, numbers attached to each step.

1. Check your financial health. Lenders run two ratios: housing costs at or under 28% of gross monthly income, and total debt at or under 36%.

2. Set your budget. Build in closing costs, 2% to 5% of the purchase price, on top of your down payment.

3. Look at first-time buyer programs. Over 2,000 state and local down payment assistance programs exist in the U.S. First-time buyers can also pull up to $10,000 from a traditional IRA with no early-withdrawal penalty.

4. Get pre-approved. Conventional loans want 620 credit minimum, 740+ for the best rates, with as little as 3% down. FHA takes 580 with 3.5% down, or 500 to 579 with 10% down. VA and USDA can go to 0% down.

5. Hire an agent. Since the 2024 NAR settlement, you sign a written agreement with your agent up front. Read it before you sign.

6. Shop within your pre-approval, not above it.

7. Make an offer. Expect an earnest money deposit of 1% to 3% of the purchase price.

8. Get the inspection. It costs $300 to $500 and takes two to three hours. Skip it to look competitive and you inherit a bad roof.

9. Clear the appraisal. Budget $300 to $600 and one to two weeks.

10. Close. The signing itself takes one to two hours. Start to finish, the whole process runs four to six months.

The $3,000 mistake: stopping at one loan quote

Five loan quotes save you $3,000 on average over the life of the loan, according to Freddie Mac research, compared with taking the first quote you get. Most first-time buyers stop at one quote because pre-approval feels like the finish line. It's the starting line. Rate-shop within a short window. Credit bureaus treat multiple mortgage inquiries in that window as a single inquiry, so shop hard and make lenders compete.

Three more mistakes show up on almost every first-time buyer's deal. Draining savings to push the down payment higher: the 2024 NAR profile puts the median first-time buyer down payment at 9%, not 20%, and an empty emergency fund is worse than paying PMI, which runs 0.5% to 1.5% of the loan amount per year. Opening new credit or changing jobs between pre-approval and closing: lenders re-check your file right before the closing table, and a new car loan can kill the deal in the final week. Waiving the inspection under pressure: a $400 inspection is the cheapest insurance in the entire transaction.

One more number from that same NAR report: the median first-time buyer is now 38 years old. Buying your first home at 35 or 40 is normal. Not late.

What this checklist means if you are on the selling side

If you own a home in Florida, the buyer sitting across the table from you is probably working through this exact checklist. An FHA buyer at 580 credit and 3.5% down. A conventional buyer at 620 and 3%. That's who's actually buying homes right now, and their financing steps (pre-approval, inspection, appraisal) are what set your timeline as a seller.

Cash Flow Deals gives you two offers to compare: the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose which offer fits your needs. Vetting helps screen for checklist problems, such as a shaky pre-approval or insufficient savings for closing costs, before a buyer reaches your property; the buyer still needs to complete the lender's requirements.

With the Premium Cash Offer, your home may be listed through Silver Door Realty, a licensed Florida brokerage, with a licensed agent and scheduled showings. Cash Flow Deals is a Florida real estate investor, not a brokerage itself. You sign with us at an agreed number and give us permission to bring in a buyer in our place. That buyer signs a new contract directly with you, title transfers directly from you to the buyer, and the buyer's lender funds the purchase. We are paid as a separate line item on the closing statement.

The Cash Flow Deals process starts with your choice between the Fast Cash Offer and the Premium Cash Offer. For Premium, Cash Flow Deals brings a buyer who has already completed pre-approval, so you aren't starting that ten-step checklist from scratch.

For either offer, the number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. With Premium, only what the buyer's lender requires gets fixed, with costs covered up front and settled from the sale proceeds out of our share. With Fast Cash, we buy as-is, with no repairs for you to make.

If your Premium buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number. You can compare the Fast Cash Offer and the Premium Cash Offer with Cash Flow Deals before choosing. The closing signing itself takes about one to two hours.