Your Home Buying Checklist

Buying a home is, without a doubt, one of the biggest financial moves you’ll make in your life, and can often include more moving pieces than the average first-time buyer expects. With anything this complex, it often helps to break it down into smaller, more manageable stages. 

That’s why we’ve put together this checklist that breaks the whole process down into each critical milestone, so you’ve got an easy-to-follow guide and can avoid any last-minute surprises. Use it as a roadmap for searching for your starter home or upgrading, so you can check off each item and get the confidence that you aren’t forgetting anything and making informed decisions at each stage.

Your Essential Home Buying Checklist

Evaluate Your Finances

The first thing you’ll need to do is take a good, honest look at your current money picture. Pull all three of your credit reports, and make sure you’re aiming for at least a 620 score for most conventional loans. 

Keep an eye on your debt-to-income ratio by dividing your total monthly debt payments by your gross monthly income. In most cases, you’ll want a DTI of around 40%, but lower is always better. Then, review your savings and confirm that you have enough cash for a down payment, closing costs, and an emergency cushion that can absorb three months of all expenses.

Finally, map out how a potential mortgage payment fits into your monthly budget going forward, so you have a clear picture of the price range that you can afford, before you ever hit the listings to start shopping. 

Get Pre-Approved for a Mortgage

A pre-approval letter tells you exactly how much you can borrow, and is a solid signal to sellers that you’re a serious buyer. To do this, you’ll need some paperwork and time to shop.

Start by getting three or four recent pay stubs, your W-2s or tax returns for the last two years, and two months of recent bank statements. Then choose two or three lenders from which you’ll compare interest rates, annual percentage rates, origination fees, and discount points.

Once you’ve gotten your pre-approval, it’s critical to keep your financial profile steady by staying on track with all payment due dates, avoiding large cash deposits, job changes, or taking out new credit cards.

Define Your Must-Haves

Before attending even one open house, list your non-negotiables. Common must-haves include things like specific school district eligibility, commute times, minimum number of bedrooms, and accessibility features. Make sure you’re keeping a clear line between what you must have in your home, and what you’d like, but things that would be deal breakers. 

Share this list with your agent, so homes that don’t meet your core criteria are automatically eliminated and filtered out in advance. A clear vision of your needs will prevent “house hunting fatigue”, keep your decisions more objective, and lower the chances of “buyer’s remorse” once the excitement wears off. 

Select a Real Estate Agent

Having a knowledgeable agent who knows the local market can save time, strengthen negotiations, and help you with the volumes of paperwork that are involved. 

Start with referrals from friends, family, or local lender partners, then verify their licenses and research recent sales in your ideal neighborhoods. Interview at least two or three agents and ask about their average time on market for listings, how they prefer to communicate, and their familiarity with various loan programs that you may utilize. 

Always read the buyer-broker agreement closely so you have clear expectations about your representation and the agent’s compensation. Finally, choose someone whose personality fits yours. You’ll be spending a good bit of time together visiting properties, crafting offers, and navigating counteroffers, so a good interpersonal dynamic is crucial.

Tour Homes and Take Notes

When it comes time to start shopping, make sure you’re only scheduling showings for properties that match your list closely, and evaluate each one systematically and objectively. 

Bring a notebook, folio, or use a phone app so that you can take copious notes about details like natural like, storage space, roof age, HVAC condition, and so on. Take photos or videos of standout features or anything that may be cause for concern, then compare your impressions against the listing for accuracy. 

After each day of tours, rank the homes while all the details and experiences are still fresh. If you’re eyeing older homes, be sure to keep repair or renovation budgets in mind. Clear notes will help you build competitive offers quickly and avoid confusion.

Arrange for a Home Inspection

Once your offer is accepted, hire a certified inspector to evaluate structural components, plumbing systems, electrical systems, and major appliances. Attend the inspection if possible, so you can see any issues firsthand, which can provide crucial context.

Typically, you’ll get the inspection report 24-48 hours later,  which will list any safety hazards, maintenance or repair concerns, and recommendations. Have a conversation with your agent about the findings, and strategize on how to continue. Depending on what the findings are, it may be business as usual, or it may be an opportunity to request repairs or negotiate other credits. 

Additional Steps Before Closing

Secure Homeowners Insurance

Insurance is critical, and most lenders won’t schedule closing until proof of insurance is on file, so shop around as soon as your offer is accepted. Get a handful of quotes that match coverage levels on dwelling, personal property, and liability. Provide your lender with the declarations page at least one week before closing.

Finalize Financing and Schedule Closing

With closing day approaching, your lender will order an appraisal, update credit reports, and verify employment. Make sure you respond quickly to documentation requests to keep your timeline. 

Review your Closing Disclosure, which lists the final costs and cash needed to close, and arrange for a cashier’s check or wire transfer of that exact amount. Coordinate with the agent, lender, title company, and real estate attorney if needed, to select a closing date that fits all calendars. Finally, schedule a final walkthrough 24 hours before closing to confirm the condition of the home hasn’t changed. 

You’re Almost Home

A thorough checklist turns a complex purchase into a manageable sequence of tasks. By evaluating finances, securing pre‑approval, clarifying must‑haves, partnering with the right agent, and performing diligent inspections, you move from dream to key in hand with fewer setbacks. Treat this guide as a living document, updating deadlines and notes throughout the process, and you’ll walk into your new home confident that every box is checked and every detail has been addressed.

The Harvard State Bank is here to help make homeownership a seamless process. Whether you’re a first-time homebuyer or looking to refinance, we’ll help you find the loan that fits your needs. Our local specialists and lending options ensure you have the expert support you need to realize your dreams.

Get started today!
Apply online at www.webhsb.com or reach out to one of our branches to schedule a meeting. Call us at (815) 943-4400. You can also contact our team directly:

Tom Raine: traine@thehsb.com
April McMullen: amcmullen@thehsb.com