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 is a Florida real estate investor that connects homeowners directly to vetted FHA, conventional, VA, and DSCR buyers through a novation agreement. Here's why the vetting matters: checklist steps that stall sales (a shaky pre-approval, a buyer who drained savings and can't cover closing costs) get screened out before a buyer ever reaches your property. Listing-side details run through Silver Door Realty, a licensed Florida brokerage. If you're selling a Florida home and want buyers who've already cleared the financial steps on this checklist, this structure solves that problem.

Cash Flow Deals is a Florida real estate investor that locks in a net price for a seller's house before repairs are scoped, using a novation-based, flat-fee process arranged through its licensed FL brokerage partner, Silver Door Realty — not a traditional listing, and not a brokerage itself.

The Cash Flow Deals process looks like this:

1. Cash Flow Deals matches your property with a buyer already vetted through Silver Door Realty, so you're not waiting on a first-time buyer to work through that ten-step checklist from scratch.

2. Your net price locks in before repairs get scoped, so a buyer's inspection contingency never turns into a renegotiation.

3. The sale closes through a single novated contract. The closing signing itself takes about one to two hours.