thepropertyquestion.com

Tag: United States

  • 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

  • Understanding Credit Scores Before You Apply for a Mortgage

    Understanding Credit Scores Before You Apply for a Mortgage

    Your credit score isn’t the only thing a mortgage lender looks at, but it’s one of the first, and it can affect both approval and pricing. The upside is that a credit score isn’t a mystery. Once you know what goes into it and how to check your file for free, you can prepare months ahead instead of getting surprised in a lender’s office. This guide covers the basics for buyers in the United States and Canada.

    Educational only. We are not a lender or credit counselor, and nothing here is financial or legal advice. Lenders use different score models and their own criteria. Ask your lender which scores and thresholds apply to you.

    What a credit score actually is

    A credit score is a three-digit summary of the information in your credit report. Higher scores generally signal lower risk to lenders.

    • United States: FICO says its base scores range from 300 to 850.
    • Canada: Equifax Canada explains that Canadian scores are typically between 300 and 900.

    You don’t have just one score. Equifax Canada notes that the two Canadian bureaus may hold slightly different information, since not every creditor reports to both, and that lenders use many different scoring models. FICO also publishes different score versions for different types of lenders. So small differences between scores are normal.

    The five things a FICO Score looks at

    FICO groups the data from your credit report into five categories. It says these weights apply to the general population and can differ from person to person:

    FactorWeightWhat it means in practice
    Payment history35%Paying on time, every time
    Amounts owed30%How much of your available credit you’re using
    Length of credit history15%How long your accounts have been open
    New credit10%Recently opened accounts and applications
    Credit mix10%Having different types of credit

    Two takeaways: on-time payments and lower balances do most of the work. You can’t fake either. They build up over months, which is why it pays to start early.

    Step 1: Check your reports for free

    • U.S.: The FTC says AnnualCreditReport.com is the only website authorized to fill orders for the free reports you’re entitled to by law, and that you can check your report from each of the three nationwide bureaus there once a week for free.
    • Canada: The Financial Consumer Agency of Canada (FCAC) explains how to get your free credit report from Equifax and TransUnion, online, by mail or by phone.

    Look for accounts you don’t recognize, late payments you believe are wrong, and incorrect personal details. The FTC says to dispute mistakes with the credit bureau and with the business that supplied the information. Disputes can take time, so do this well before you apply. The CFPB notes that checking your own credit does not affect your scores.

    Step 2: Strengthen what you can in the months before applying

    General habits that line up with the factors above:

    • Set up autopay or reminders so no payment slips.
    • Pay down revolving balances where you can, rather than moving them around.
    • Avoid opening new credit you don’t need just before a mortgage application.
    • Keep older accounts in good standing. They add to the length of your history.

    There’s no guaranteed “score boost”, so be wary of any service that promises a quick fix.

    Step 3: Know that lenders look beyond the score

    Your score sits alongside your income, job stability, savings and existing debts. The CFPB explains your debt-to-income ratio (DTI): all your monthly debt payments divided by your gross monthly income. It’s one way lenders measure your ability to manage payments, and different loan products and lenders have different DTI limits. A strong score with a high DTI can still be a problem, so add up your own numbers before a lender does.

    Step 4: Rate-shop without fear (US)

    Many buyers worry that comparing lenders will hurt their credit. The CFPB says that within a 45-day window, multiple credit checks from mortgage lenders are recorded as a single inquiry. Shopping around is usually worth it even if a check falls outside that window. Gather your quotes within a focused period, then compare them. Our first-time buyer guide explains preapproval.

    In Canada, rules and practices can differ, so ask each lender or broker how their credit check will be recorded before you agree to it.

    A simple 90-day prep plan

    • Day 1: Pull your reports (US: all three bureaus; Canada: Equifax and TransUnion).
    • Week 1–4: Dispute any errors. Set up autopay.
    • Month 1–3: Bring card balances down. Avoid new credit applications.
    • Month 3: Recheck your reports, calculate your DTI, then start talking to lenders.

    Keep learning

    For score ranges, factors and free-check links in one place, see our credit score guide. For loan types and Canadian specifics like the stress test, visit buying basics.

    Last checked: 5 October 2026. Score models and lender criteria change. Confirm with your lender and the official sources above.

    Sources