Buying a Home Checklist: 10 Must-Have Items

Estimated reading time: 9 minutes

There are a few steps you can work into the homebuying process to help ensure you get a solid home and mortgage. But, the process can be fast-paced which makes being prepared key. As you plan ahead, here are 10 things to put on a checklist when buying a new home.

1. Evaluate your finances

The first item on your checklist should be to determine if it’s the right time for you to buy a house. Do this by asking yourself a few financial questions such as:

• What is your current credit score? A low credit score usually results in a higher mortgage rate. If that’s a hurdle, there may be ways to prepare your credit before you apply for a loan. You can also consider buying discount points (an extra upfront cost) from a lender to lower your rate.
• How much house you can afford? A mortgage calculator can help you settle on a number or a mortgage lender can Pre-Approve you to give you an estimate.

Get Pre-Approved with Mr. Cooper. It’s free and only takes a few minutes.

2. Calculate an affordable down payment

Settling on a down payment is crucial to your checklist for buying a home because it can dictate your new home’s cost. Homebuyers often think they need 20% down, but many pay much less thanks to low down payment mortgage options. This makes it possible to afford more home for less. For example, to buy a $300,000 home with 20% down, you’ll need $60,000 ($300,000 x 20% = $60,000). But if your loan allows a 3.5% down payment, you’ll only need $10,500 ($300,000 x 3.5% = $10,500). If you qualify for a VA loan, they can allow even less down—0%.

To determine your down payment and other funds you’ll need at closing, the  Consumer Financial Protection Bureau (CFPB) suggests:

• Adding up your total available savings.
• Then subtracting what “you want to set aside for other savings goals, moving costs, and potential renovations to your new home.”
• Then, subtract an “emergency cushion”—roughly 3–6 months’ worth of monthly costs. What’s left is what you can pay upfront at closing.

3. Interview mortgage lenders

The mortgage process can involve a lot paperwork, loan types, and last-minute changes, so you’ll want a reliable mortgage company. To find the best lender for you, prepare a list of interview questions to ask lenders. For example, if you’ll want a quick response on a loan approval, ask if they have in-house underwriters.

Also ask if they offer any programs that can get your costs down, such as mortgage buydowns. These can temporarily lower a mortgage’s interest rate for 1-3 years, and some lenders may fund them for you. This includes Mr. Cooper’s 1% Mortgage Markdown. We’ll knock 1% off your rate for a full year.

Learn how Mr. Cooper’s 1% Mortgage Markdown works.

4. Get a Verified Approval

The most time-sensitive item on your checklist when buying a home is making an offer. It’s important to be ready to make an offer during or soon after viewing a home. One way to show sellers you’re a serious buyer is to include a Verified Approval Letter with your offer. These letters are a step above Pre-Approval Letters and include a strong estimate of what a lender says you can afford. Mortgage companies only share Verified Approval Letters after checking a homebuyer’s finances, which can give sellers added confidence in a bid. Additionally, in a competitive market, sellers may require your “highest and best offer.”

Get an initial underwriting approval with a Mr. Cooper Verified Approval and receive an approval letter as early as the same day or next day! It’s fast, free, and shows sellers that you’ve got one of the nation’s largest servicers behind your offer.

5. Hire a real estate agent and inspector who work in the area where you’re buying

Finding the right home can be like finding a needle in a haystack. For expert tips, work with an experienced real estate agent. Hiring one in the area where you want to buy is also ideal. They may know where to find the best deals and what homes to avoid. After you find a home, you’ll also want a veteran inspector to check it out. Inspectors who’ve worked in the area may know about common problems to watch for. A good agent can point you to a few pros to choose from.

Take the stress out of homebuying & selling! With Mr. Cooper^® Close & Save, we’ll get you on the path to match with an experienced, local agent from the Mr. Cooper Real Estate Services network, and you may save up to $10,000 when you buy and sell with us!* Get started with Mr. Cooper Close & Save here.

6. Research homebuilders’ reputations (if you’re buying new construction)

Buying from a homebuilder could bring you years of stress-free homeownership. But no builder is perfect and buying new usually means paying more—so protect your investment. Check with real estate agents, other builders, and current homeowners in a builder’s neighborhood on their reputation. You’ll want to know what warranties they offer and if they stand behind them.

7. Plan for how (and when) to walk away

One checklist item everyone should be prepared for is a rejected home offer. Expect that your bid may not be accepted and be ready to walk away if a home doesn’t pass inspection. Think ahead about where you can live in the short term if things fall through.

If you need to find another motivated seller, check into expired listings. These are real estate listings that timed out of their real estate agent’s agreement. These houses may need TLC or weren’t priced right when they went on the market. These sellers may be more negotiable to get their houses moving again.

8. Get an estimate of your loan fees and costs

The fees and upfront costs associated with closing on a sale can catch some buyers off guard. Create a spot on your checklist  to ask your lender what costs will be associated with your mortgage. Some common fees include loan origination fees, a title search fee, an appraisal fee, homeowners insurance, and property taxes.

9. Prepare your loan documents

Make a mortgage documents checklist to get ready for your mortgage application. You’ll need some documents handy for a lender like identification, recent tax returns, and your signed contract.

10. Create a moving plan

While this is one of the last items on your “buying a new home checklist,” it can seem like the most difficult. Moving takes time, energy, and is usually an added expense for packing materials, rentals, or a moving service. For some great money-saving moving tips, check our blog “How to Reduce Moving Costs and Move For Free.”

Ready to get started on a loan? We can help! Call our Mortgage Professionals at 833-702-2511 to discuss your options or get started online.

*Mr. Cooper^® Close & Save Terms and Conditions

Up to $10,000 cashback based on customer purchasing a new home using an agent referred by Mr. Cooper Real Estate Services and obtaining a $1,000,000 purchase loan from Mr. Cooper for a lender credit of $5,000 and selling a $1,000,000 property using an agent referred by Mr. Cooper Real Estate Services and receiving a rebate of $5,000. Lender credit provided by Mr. Cooper. Rebate offered by independent referral brokerage to customers after closing the sale of a property. Lender credit depends on the loan amount and rebate amounts depends on property sale price so individual results will vary. Not available in all states. See full terms and conditions.

Rebate disclosure: to obtain the Mr. Cooper Close & Save rebate, customers must list and sell their property using a real estate agent referred by Mr. Cooper Real Estate Services, a licensed real estate brokerage, and an independent referral real estate brokerage. After closing, the referral brokerage will issue the rebate. Rebate is .5% of the sale price. For example, for a $250,000 sale, a customer would receive a rebate of $1,250 from the referral brokerage.   Ask referral brokerage for details. Rebate not available in Alaska or Oklahoma. Rebate not available for employer-sponsored relocations or transactions in Iowa or outside the U.S. In Kansas and Tennessee, consumers will be issued gift card. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. Rebate not available in certain transactions with restricted agent commissions (including many new construction, For Sale by Owner, or For Sale by iBuyer transactions). The referred agent can identify transactions where the rebate is not available. Customers retain the right to negotiate their individual listing agreement. Additional restrictions/conditions may apply. Offer subject to change or cancellation without notice.

Lender Credit disclosure: to obtain the Close & Save lender credit, customers must purchase a new home using an agent referred by Mr. Cooper Real Estate Services and obtain a purchase loan from Mr. Cooper. Qualifying customers will receive a lender paid credit that is 0.5% of their loan amount. For example, on a home loan of $250,000, a customer would receive a lender credit of $1,250 toward closing costs. Offer does not apply to new loans submitted through a mortgage broker or on nonagency jumbo loans, non-QM loans, second lien products or team member loans. Offer may not be redeemed for cash and is nontransferable. Offer cannot be retroactively applied to loans where the rate has been locked. Additional restrictions/conditions may apply. Offer subject to change or cancellation without notice. This is not a commitment to lend and is contingent on qualification per full underwriting guidelines.

All agents have been independently vetted to meet performance expectations required to participate in the Mr. Cooper Real Estate Services network. You are not required to use a real estate agent referred from Mr. Cooper Real Estate Services as a condition of receiving a loan from Mr. Cooper, and you are not required to obtain a loan from Mr. Cooper to use an agent referred by Mr. Cooper Real Estate Services.

This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. HomeSelect Settlement Solutions LLC dba Mr. Cooper Real Estate Services is a Mr. Cooper affiliate.  8950 Cypress Waters Blvd., Dallas, TX 75019. Licensed Texas Broker, license # 588848; Principal Broker Kevin Alaimo. Referrals to Mr. Cooper Real Estate Services may provide a financial benefit to Mr. Cooper. Anywhere Leads Inc.,175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191; Clever Real Estate, 6358 Delmar Boulevard, Suite 300, University City, MO 63130. Licensed Texas Broker. Broker license #9010415; Jason Mitchell Real Estate LLC, 1000 Texan Trail, Suite 150, Grapevine, TX 76051. Licensed Texas Broker, Broker license # 728806; Vylla Home, 7600 Chevy Chase Rd., Suite 3, Austin, TX 78752. Licensed Texas broker, Broker License # 597813.

TREC:  Consumer protection notice 

https://www.trec.texas.gov/sites/default/files/pdf-forms/CN%201-5_0.pdf

Nationstar Mortgage LLC dba Mr. Cooper and HomeSelect Settlement Solutions LLC dba Mr. Cooper Real Estate Services are affiliates and separate legal entities.