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Category: First-Time Buyers

  • First-Time Homebuyer Checklist for the United States

    First-Time Homebuyer Checklist for the United States

    Buying your first home involves dozens of small decisions, and the order matters. If you shop for houses before you understand your budget, or sign loan papers before comparing offers, you can lose money or miss a home you loved. This checklist puts the main steps in a sensible order and points you to free, official U.S. resources for each one.

    Educational only. The Property Question is not a lender, broker, or financial adviser. Rules, programs and costs vary by state and by lender. This article is general education, not financial or legal advice. Confirm details with your lender, a licensed real estate agent, or a HUD-approved housing counselor before you decide anything.

    1. Pull your credit reports (free) and fix errors early

    The Federal Trade Commission says AnnualCreditReport.com is the only website authorized to fill orders for the free credit reports you’re entitled to by law, and that the three nationwide credit bureaus (Equifax, Experian and TransUnion) let you check your report from each of them once a week for free there. Checking your own credit doesn’t affect your scores. Check all three reports for:

    • accounts you don’t recognize
    • wrong balances or late-payment marks
    • old addresses or names that hint at a mix-up

    If you find a mistake, the FTC says to contact both the credit bureau and the business that supplied the information. Disputes can take time, so start months before you plan to apply. For how scores work, see our credit score guide.

    2. Set a budget you can live with, not just one you can qualify for

    A lender may approve a bigger payment than you’re comfortable with. As the CFPB puts it, only you can decide how much you’re comfortable paying upfront and each month. Its Loan Estimate explainer notes that your total monthly payment will typically be more than principal and interest because of property taxes and insurance, and its Closing Disclosure explainer adds that HOA fees are often not included in escrow. So plan around the whole picture: the mortgage payment, property taxes, homeowner’s insurance and any HOA dues, plus room for maintenance and an emergency cushion. Write down:

    • the monthly payment you’d be comfortable with
    • the cash you can put toward a down payment and closing costs
    • the savings you want left over after you move in

    3. Learn the main loan types

    The CFPB groups loans into conventional loans, government-backed loans (FHA, VA for veterans, servicemembers or surviving spouses, and USDA for low- to middle-income borrowers in rural areas) and special programs such as state or local housing agency loans. The loan type affects how much you need for a down payment, the total cost of the loan including interest and mortgage insurance, and how much you can borrow. Ask each lender which programs you may qualify for. Don’t assume from a headline. Our buying basics page gives an overview.

    4. Get preapproved by more than one lender

    The CFPB describes a preapproval letter as a statement from a lender that it is tentatively willing to lend to you, up to a certain amount. It’s based on assumptions and is not a guaranteed loan offer, and letters often carry an expiration date. Getting preapproved doesn’t commit you to that lender. The CFPB also notes that you can shop around and get multiple preapprovals and official Loan Estimates: within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry.

    5. Compare Loan Estimates line by line

    The CFPB’s Loan Estimate explainer walks through the form section by section. Ask each lender for an estimate on the same kind of loan so the comparison is fair. Then, as the CFPB suggests:

    • Compare origination charges across lenders. Lenders itemize these fees differently, so it’s the total that matters.
    • Review the “Services You Can Shop For.” You may save by choosing providers yourself.
    • Check whether the estimated property taxes and homeowner’s insurance look realistic for the area.
    • Look at Estimated Cash to Close and ask whether it matches what you expected.

    6. Make an offer with protections you understand

    Your agent will explain which contingencies are common where you’re buying. Typical ones cover inspection, appraisal and financing. Ask what each one protects and what happens to your deposit if the deal falls through. Rules differ by state, so rely on your agent and contract, not general articles.

    7. Get a home inspection and read the whole report

    An inspection is your chance to learn about the roof, the systems and any hidden problems before you’re committed. Go to the inspection if you can. Ask the inspector which items are safety issues, which are repairs needed soon, and which are normal wear. Then decide with your agent whether to ask for repairs, credits, or nothing.

    8. Review your Closing Disclosure before closing day

    The CFPB says lenders are required to provide your Closing Disclosure three business days before your scheduled closing. Use that time. Compare it with your latest Loan Estimate, and question any change in the loan terms, the interest rate or the cash to close. Then protect your money. The CFPB warns about mortgage closing scams, where fake emails send last-minute wiring changes. Never follow wiring instructions from an email alone. Confirm them with your real estate or settlement agent, using phone numbers you saved earlier.

    Printable checklist

    • ☐ Free reports pulled from all three bureaus; errors disputed
    • ☐ Comfortable monthly budget written down (all costs, not just principal and interest)
    • ☐ Down payment + closing cost + reserve savings plan
    • ☐ Loan types discussed with at least two lenders
    • ☐ Multiple preapprovals and Loan Estimates compared
    • ☐ Offer contingencies explained by your agent
    • ☐ Inspection attended and report reviewed
    • ☐ Closing Disclosure compared to Loan Estimate; wiring instructions verified by phone

    Free help

    The CFPB offers a tool to find a HUD-approved housing counselor near you. These agencies can offer independent advice, often at little or no cost. For our full learning path, start at First-Time Buyers.

    Last checked: 5 October 2026. Program rules change. Verify with official sources and your lender.

    Sources

  • Canada First-Time Buyer Basics: What to Research First

    Canada First-Time Buyer Basics: What to Research First

    Buying your first home in Canada means learning a new vocabulary: insured versus uninsured mortgages, the stress test, FHSA, HBP. It’s easy to lose weeks reading opinions online. A better approach is to research a short list of official topics first, in the right order. This guide shows you where to start and which federal sources to read for each step.

    Educational only. The Property Question is not a lender, mortgage broker or tax adviser. This article is general education, not financial, tax or legal advice. Federal rules, provincial programs and lender criteria change. Confirm everything with your lender or broker, a tax professional, and the official pages linked below.

    1. Your credit file

    Start with what lenders will see. Equifax Canada explains that Canadian credit scores are typically between 300 and 900. The Financial Consumer Agency of Canada (FCAC) explains how to get your free credit report from both national bureaus, Equifax and TransUnion.

    Check both reports for errors and accounts you don’t recognize, and dispute mistakes early. For a deeper explainer, see our credit score guide.

    2. Down payment rules and mortgage loan insurance

    This is the biggest early question for most buyers. CMHC explains that if your down payment is less than 20%, you’ll need mortgage loan insurance, which protects your lender if you can’t make your payments. As of 5 October 2026, CMHC’s page sets out the minimum down payment by purchase price:

    • Home costs $500,000 or less: minimum 5% down
    • Home costs more than $500,000: 5% on the first $500,000 and 10% on the remainder
    • Home costs $1,500,000 or more: mortgage loan insurance is not available

    Thresholds can be updated, so read CMHC’s page in full before you plan around them. The insurance premium is a real cost. CMHC says it’s calculated as a percentage of the mortgage, based on the size of your down payment, and that your lender will likely pass it on to you, either as a lump sum or added to your mortgage. CMHC publishes a premium chart, so run your own numbers rather than relying on rules of thumb.

    3. The mortgage stress test

    Even if you can afford the payment at today’s rate, lenders must check that you could still afford it at a higher one. OSFI calls this the minimum qualifying rate (MQR), a stress test it requires federally regulated lenders to apply to borrowers. For uninsured mortgages, OSFI describes two components (as of 5 October 2026):

    • The buffer, currently 2% above your contract rate
    • The floor, currently 5.25%

    You’re tested at whichever is higher. OSFI says it reviews both the floor and the buffer at least annually. Our buying basics page covers this in more detail. Ask your lender how qualification works for an insured mortgage too, as the process can differ.

    4. Federal savings tools: FHSA and the Home Buyers’ Plan

    Two Canada Revenue Agency (CRA) programs are worth researching early, because timing matters:

    • First Home Savings Account (FHSA). As of 5 October 2026, CRA’s FHSA pages state that your participation room is $8,000 in the year you open your first FHSA, with a lifetime limit of $40,000. Some unused room can be carried forward, up to a cap.
    • Home Buyers’ Plan (HBP). This lets you withdraw from your RRSPs to buy or build a qualifying home if you meet the conditions. As of 5 October 2026, CRA states that the HBP withdrawal limit is $60,000 and that withdrawals are paid back to your RRSPs over a period of up to 15 years.

    Eligibility rules for both are detailed. Read CRA’s own pages, or talk to a tax professional, before opening accounts or making withdrawals.

    5. Provincial and municipal costs

    Some of the biggest closing costs are set provincially or locally. These include land transfer taxes (with first-time buyer rebates in some places), legal fees and property taxes. They vary by province and city, so look up your province’s official page and ask your real estate lawyer or notary for an estimate. (We don’t list provincial amounts here because they differ and change.)

    6. Your budget beyond the mortgage

    Lenders look at your debt service, but you have to live with the payment. Add up:

    • mortgage payment (at a realistic rate, not just the best advertised one)
    • property tax, home insurance and utilities
    • condo fees, if any
    • maintenance and an emergency fund

    Treat any online affordability calculator’s result as a starting point, not a decision.

    7. Then talk to lenders or a broker

    Once you’ve done this groundwork, you’ll have better conversations. Questions to ask:

    • Am I looking at an insured or uninsured mortgage, and why?
    • What rate am I being stress-tested at?
    • How will your credit check be recorded?
    • What documents do you need for preapproval?

    Research order, at a glance

    1. Free credit reports (Equifax + TransUnion)
    2. Down payment and mortgage loan insurance (CMHC)
    3. Stress test (OSFI)
    4. FHSA and HBP (CRA)
    5. Provincial and local closing costs
    6. Full monthly budget
    7. Lender or broker conversations

    Newcomers to Canada

    If you’ve recently arrived, credit history and income documents can work differently for you. Our buying basics page is a good starting point. Ask lenders about their newcomer requirements directly, and see our First-Time Buyers path for the full process.

    Last checked: 5 October 2026. Figures above come from official pages on that date and can change. Confirm before you act.

    Sources