Checklist: Ready to Make 2025 Your Year of Homeownership?

Welcome! Use this checklist to prepare for your journey to homeownership. This step-by-step guide will help you focus on essential actions each month to make your goals achievable and stress-free.

1. Assess Your Finances and Set Your Budget
Determine Your Ideal Budget: Review your income and monthly expenses. Calculate how much you can comfortably afford in mortgage payments.
Estimate Down Payment Needs: Explore financing options to see if you need 3%, 5%, or more for a down payment. Start setting aside funds to meet this goal.
Check Mortgage Options: Look into different loan programs (FHA, VA, conventional) and requirements to find the best fit.
 
2. Build or Improve Your Credit Score
Check Your Credit Report: Access a free copy of your credit report to identify any issues. Look for inaccuracies and address them as needed.
Reduce Credit Balances: Aim to pay down high balances to improve your credit utilization ratio.
Stay Consistent with Payments: Make sure you’re on time with all bills—payment history has a significant impact on your score.
 
3. Set Up an Automated Savings Plan
Open a Dedicated Account: Consider setting up a separate account for your homeownership fund.
Automate Your Savings: Schedule automatic monthly transfers to build your down payment and cover closing costs.
Save for Additional Costs: Plan for inspection fees, moving costs, and emergency funds. Aim to save at least 2-3% of the estimated home price for these expenses.
 
4. Research Market Conditions and Areas
Identify Your Top Neighborhoods: Start thinking about the areas that meet your lifestyle, commute, and amenity preferences.
Understand Local Market Trends: Check the average home prices and market trends for these areas.
Stay Flexible with Timing: Depending on the market, the best deals can vary by season, so plan accordingly.
 
5. Get Pre-Approved for a Mortgage
Connect with a Loan Officer: Reach out to a loan officer (I’m here to help!) to discuss pre-approval and your borrowing options.
Gather Necessary Documents: Prepare proof of income, bank statements, and other financial documentation to streamline the pre-approval process.
Establish a Comfortable Price Range: Pre-approval gives you a clear idea of what you can afford and strengthens your offer when you’re ready to buy.
 
6. Consider Building Your Team
Find a Trusted Realtor: Your realtor will be your advocate and guide in finding the right home and negotiating the best deal.
Consider Other Professionals: Begin researching home inspectors, real estate attorneys, and title agents if needed.
Establish Communication Preferences: Discuss how often and in what ways you’d like to be updated throughout the process.
 
7. Create a Home Buying Wishlist
Prioritize Needs vs. Wants: Make a list of must-haves (like the number of bedrooms) and nice-to-haves (like a backyard or proximity to amenities).
Be Ready to Adjust: The market can be competitive, so be prepared to compromise on non-essential items.
 
8. Plan for Closing and Moving
Review Closing Costs: Have an estimate of the fees associated with closing, typically around 2-5% of the home’s purchase price.
Prepare for Moving Day: Start looking into moving companies, DIY options, or assistance from friends and family.
Consider Setting Up Utilities Early: Check utility transfer times and arrange any setup appointments before moving in.
 
9. Start Looking at Properties
Schedule Showings: Begin looking at homes within your budget and wishlist range with your realtor.
Stay Open-Minded: Remember, finding the right home can take time. Be patient and ready to adapt your criteria.
 
10. Be Ready to Make an Offer and Close
Decide on Your Offer Strategy: Work with your realtor to determine a competitive offer within your budget.
Arrange a Home Inspection: Prioritize a home inspection to understand the property’s condition before closing.
Finalize Your Loan: Once your offer is accepted, finalize loan documents and prepare for closing.
 
Ready to Start? Let’s Make 2025 Your Year!