First-time homebuyers will find that there is plenty of due diligence, money, and trial and error involved in the home buying process. However, being a first-time home buyer can come with a number of advantages. 1. __It can be quicker__. First-time homebuyers won’t have to wait for their current home to sell before buying their first home. This means that people who are looking for their starter home can often move into a new home quicker than current homeowners. This also erases the need for a possible home sale contingency, which can make first-timers more attractive to sellers. 2. __You may be able to obtain better interest rates than the standard ones__. Private financial institutions that offer conventional loans for first-time borrowers might require only a small down payment—as little as three percent of the home price. Conventional mortgages are loans that are not guaranteed by the government. 3. __You may be entitled to extra assistance__. Your state, city, and county may have first-time home-buyer programs. These loan programs often combine lower mortgage rates with assistance for down payments and closing costs, as well as tax credits. As you make your way through the home buying process, there are a number of factors you should consider. Buying your [first home](https://www.masterclass.com/articles/buying-your-first-home-explained) involves researching neighborhoods and homes, getting a [real estate agent](https://www.masterclass.com/articles/what-is-a-realtor-explained), ensuring that your finances are sound, carving out time for tours and open houses, and acting decisively to land your dream home. Below is a first-time home buyer checklist to make sure you cover all your bases. 1. __Determine your debt-to-income ratio__. Your debt-to-income (or DTI) ratio can help you determine how affordable your monthly mortgage payments are. There are plenty of DTI ratio calculators online where you enter all your monthly expenses, as well as your gross monthly income. 2. __Save for a down payment__. Unless you have enough cash to afford the entire cost of a home, you’ll need to secure a mortgage loan. Your home loan covers most of the purchase price, and you’ll pay it back (with interest) over a set period of time—but you’ll need to pay the down payment upfront using cash on hand. The larger the down payment, the more you’ll save over the course of your loan. 3. __Find a buyer’s agent__. Real estate agents can work exclusively as buyer’s agents—also called selling agents—where they represent a client who is looking to buy property. You want someone experienced, knowledgeable, and trustworthy with whom you can establish a great rapport. 4. __Get mortgage pre-approval and choose a lender__. The type of mortgage you get depends on a few financial factors. Sellers want to know you’re actually able to pay, and you show them by getting a pre-approval letter. Before you start home shopping in earnest, shop for mortgage lenders and provide the necessary financial documents like pay stubs, credit report and job history, debts, and [assets](https://www.masterclass.com/articles/what-is-an-asset) to get pre-qualified for a loan amount that you’re capable of paying back. 5. __Find the right home for you__. Research and visit neighborhoods. Look at current and previous listings in those areas. Work with your agent to narrow down your list of properties, prioritizing features that matter most to you. 6. __Make a smart offer__. Lean on your agent for the initial offer amount and contingencies, taking into consideration the current housing market, how long the home has been for sale, and any outstanding offers from other buyers that you might be competing against. 7. __Negotiate__. If a seller makes a counteroffer (or tries to initiate a bidding war among potential buyers), rely on your agent’s expertise. They’ll know when to increase the offer amount (and by how much), if you should remove contingencies, or when to call the seller’s bluff and pull your bid. 8. __Schedule a home inspection__. The inspector will closely examine the property and write a report detailing the condition, noting any issues. Use these findings to ask the seller to make fixes, reduce the purchase price, or make concessions for closing. 9. __Assemble cash to pay closing costs__. Your finances will need to be liquid at closing so that you can cover various costs to finalize the deal, such as property taxes, loan origination fees, appraisal fees, and attorney’s fees. 10. __Complete a home appraisal__. If you have a mortgage lender, they’ll arrange for a professional appraiser to determine the property value, ensuring that they (and you) aren’t paying more than the home is actually worth. 11. __Get homeowner’s insurance__. If you have a mortgage lender, they’ll require you to provide <a href='https://masterclass.com/articles/baking-101-what-is-proofing-learn-how-to-proof-breads-and-other-baked-goods' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/baking-101-what-is-proofing-learn-how-to-proof-breads-and-other-baked-goods","linkCopy":"proof","category":"automated-link"}' automatic='true'>proof</a> of insurance at closing. Shop around to find the best policy for you. 12. __Scout a contractor__. Unless the home is 100 percent turnkey, there’s likely to be some work you want (or need) done after closing. Start looking around for a contractor who can complete that work. Search online and ask your agent—or, even better, other homeowners you know—if they can make introductions to a contractor they trust. 13. __Do a final walk-through__. In most cases, you get one [final chance](https://www.masterclass.com/articles/final-walk-through-guide) to look at the property 24 hours before closing. At that point, the home should be completely empty (aside from any appliances you agreed to keep) and reflect the condition stated in your contract. Test everything—faucets, light fixtures, appliances, toilets, doors, windows, the HVAC system, and anything else. If there are issues, report them to your agent immediately. 14. __Bring everything necessary to closing__. Closing costs can include the expenses and fees associated with the purchase and sale of a home, such as taxes, title insurance, appraisal, lender fees, and other services carried out during closing. On closing day, you’ll need to provide ID, proof of home insurance, checks or cashier’s checks to cover the closing costs, and other documentation that your agent will bring to your attention. 15. __Close on your home__. After signing the paperwork, the home will transfer to you. You’ll shake hands with the agent and get the keys to your new home. All you need is a [MasterClass Annual Membership](https://www.masterclass.com) and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market. This checklist can set first-time home buyers up for success, and make the buying process much smoother.