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First-Time Home Buyer Checklist — Your Complete Step-by-Step Guide

Buying your first home involves dozens of steps across several months. Missing even one can delay your purchase or cost you money. This comprehensive checklist guides you through every phase — from initial preparation through closing day and beyond.

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Trusted by over 2,500 California families

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2500+

Families Helped

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$1.2B+

in Loans Funded

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23-Day

Avg. Closing

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No impact to your credit score.

1

Financial Preparation

3-12 Months Before

Credit

  • Check your credit score (all three bureaus)
  • Review credit reports for errors
  • Dispute any inaccuracies
  • Pay down credit card balances
  • Avoid opening new credit accounts
  • Keep credit utilization under 30%

Savings

  • Determine down payment goal
  • Calculate closing costs (2-5%)
  • Build emergency fund (3-6 months expenses)
  • Set up automatic savings transfers
  • Explore down payment assistance programs

Documentation

  • Gather pay stubs (last 30 days)
  • Locate W-2s and tax returns (2 years)
  • Collect bank statements (2 months)
  • Organize investment/retirement statements
Financial preparation for home buying
2

Pre-Approval

1-3 Months Before

  • Research mortgage lenders
  • Compare rates and fees from 2-3 lenders
  • Choose a lender and loan officer
  • Complete mortgage application
  • Submit all required documentation
  • Receive pre-approval letter
  • Understand your approved loan amount
  • Know your comfortable monthly payment
3

House Hunting

  • Define your must-haves vs. nice-to-haves
  • Choose target neighborhoods
  • Research schools (if applicable)
  • Interview and select real estate agent
  • Set up property alerts
  • Attend open houses
  • Schedule private showings
  • Take notes and photos at each property
  • Consider resale value and future needs
House hunting neighborhood view
4

Making an Offer

  • Research comparable sales in area
  • Determine offer price with your agent
  • Decide on contingencies (inspection, financing, appraisal)
  • Write offer letter (if appropriate for market)
  • Submit offer with pre-approval letter
  • Negotiate counteroffers
  • Sign purchase agreement
  • Submit earnest money deposit
  • Set closing date
5

Under Contract

30-45 Days

Week 1-2

  • Finalize mortgage application with lender
  • Schedule home inspection
  • Attend home inspection
  • Review inspection report
  • Negotiate repairs or credits (if needed)
  • Order appraisal (lender arranges)
  • Purchase homeowners insurance
  • Begin title search

Week 2-4

  • Respond promptly to lender requests
  • Review appraisal results
  • Complete any outstanding conditions
  • Avoid major purchases or credit changes
  • Schedule final walkthrough
  • Review Closing Disclosure (3 days before closing)
  • Arrange certified/cashier's check or wire transfer
6

Closing Day and Beyond

Closing Day

  • Conduct final walkthrough
  • Bring required identification
  • Bring cashier's check or confirm wire transfer
  • Review all documents before signing
  • Sign closing documents
  • Receive keys

After Closing

  • Change locks
  • Transfer utilities
  • Update address with USPS, DMV, employers
  • File homestead exemption (if applicable)
  • Save all closing documents
  • Set up mortgage auto-pay
  • Create home maintenance schedule
Closing day celebration with new home keys

Loan Programs for Every Need

We offer a comprehensive range of mortgage products. The right loan depends on your situation, goals, and financial profile — and we'll help you find the perfect fit.

DSCR Loans

Best for: investors qualifying by rental income.

How it works: Approval is based on property cash flow, not personal income.

Key features:

  • No personal income docs
  • 620+ credit, 20–25% down
  • Unlimited properties
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Conventional Investment Loans

Best for: strong W-2 investors.

How it works: You qualify using personal income, credit, and assets.

Key features:

  • Lowest rates
  • 620+ credit (700+ ideal)
  • Up to 10 properties
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Portfolio Loans Options

Best for: complex or large portfolios.

How it works: Lender creates a custom loan outside standard guidelines.

Key features:

  • Flexible underwriting
  • Finance 10+ properties
  • Relationship-based
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Fix & Flip (Bridge Loans)

Best for: renovate-and-sell investors.

How it works: Short-term loan for purchase and rehab, repaid at sale or refi.

Key features:

  • Fast closings (7–14 days)
  • Based on ARV
  • Covers purchase + rehab
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Cash-Out Refinance (Investors)

Best for: pulling equity to reinvest.

How it works: Refinance and extract cash from existing property value.

Key features:

  • Access up to 75–80% value
  • Use funds for any purpose
  • DSCR or conventional options
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Blanket Loans

Best for: multiple properties.

How it works: One loan covers several properties under one payment.

Key features:

  • One loan, one payment
  • Finance 5+ properties
  • Portfolio consolidation
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Short-Term Rental Loans

Best for: Airbnb/VRBO investors.

How it works: Qualify using projected or actual short-term rental income.

Key features:

  • DSCR-based
  • 20–25% down
  • Uses STR income data
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Bank Statement Loans

Best for: self-employed borrowers without traditional income docs.

How it works: You qualify using 12–24 months of bank deposits instead of tax returns.

Key features:

  • No W-2s or tax returns
  • Personal or business statements
  • 620+ credit typical
  • 10–20% down
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Bayarealty

Checklist Questions, Answered

Can't find your answer? Reach out and we'll be happy to help.

15+

Years Experience

23

Day Avg Close

1500+

Happy Clients

1313 N Milpitas Blvd, Suite 235, Milpitas, CA 95035+1 408-662-5145bayarealty.genesisloans@gmail.com
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