First-Time Home Buyer Checklist: Everything You Need to Know in 2026
Buying your first home is exciting — the process might feel overwhelming. From budgeting to closing, this step-by-step checklist walks you through everything first-time home buyers need to know to buy smart and avoid costly mistakes.
🏠 1. Confirm You’re a First-Time Buyer
In Indiana, many of the best programs and down payment assistance options are designed for first-time buyers — typically defined as someone who hasn’t owned a home in the last 3 years. These programs can help you save on down payment, closing costs, and even offer tax credits.
💳 2. Check Your Credit and Financial Health
Before diving into the market:
Pull your credit report and score early.
Correct any errors and work to improve your score if needed — lenders often look for a FICO score of at least ~640+ for favorable mortgage programs in Indiana.
Pay down high-interest debts to improve your debt-to-income ratio (DTI).
A higher score can mean better mortgage rates and more loan options.
📊 3. Set Your Budget and Get Pre-Approved
Knowing what you can afford is one of the most important steps you’ll take.
✔ Calculate monthly payments including:
Mortgage principal
Property taxes
Homeowners insurance
PMI (if your down payment is <20%)
Then, get pre-approved by a lender — this not only clarifies your budget but also strengthens your offer when you find a home.
💰 4. Explore Down Payment Assistance Programs
One of the biggest myths is that you need 20% down — in Indiana, that’s not always the case. Many first-time buyers put down 3–5% or use assistance programs.
Indiana Programs Worth Knowing
IHCDA First Place – Down payment assistance plus 30-year fixed mortgage options.
IHCDA Next Home – Offers additional DPA for buyers.
These programs can significantly reduce upfront costs — but eligibility and amounts vary, so work early with an approved lender.
📍 5. Choose Your Perfect Location
Indiana’s housing market is diverse
Consider:
Proximity to work or schools
Future growth and resale potential
Neighborhood safety and amenities
Research the area and even visit at different times of day to ensure it’s right for you.
🏠 6. Start House Hunting
Once pre-approved and your budget is set:
Work with a local real estate agent familiar with Indiana’s 2026 market.
Attend open houses to compare features and build confidence.
Narrow your list based on must-haves vs nice-to-haves.
Agents familiar with first-time buyers can help you target homes that fit both lifestyle and budget.
🔍 7. Do Your Inspections
A home inspection isn’t optional — it’s essential.
Typical inspections include:
General home inspection (structure, roofing, plumbing)
Radon testing
Termite or pest inspection if required by mortgage programs
Inspections protect you from hidden issues and give you negotiating power.
📈 8. Finalize Your Loan & Prepare to Close
After your offer is accepted:
Final underwriting by your lender
Home appraisal to confirm value
Secure homeowners insurance
You’ll also pay closing costs — usually 2–3% of the purchase price — so budget for that as well.
🎉 9. Closing Day — You’re a Homeowner!
On closing day you’ll:
Sign final paperwork
Pay remaining funds
Get the keys to your new home
Congratulations — you’ve completed your first home purchase in Indiana!
🧠 Bonus Tips for First-Time Buyers in Indiana
✔ Don’t skip pre-approval — sellers look for it.
✔ Keep extra savings for unexpected costs.
✔ Real estate markets change — stay informed through local market reports.
Author Bio
Shea Fleck is a Southern Indiana real estate agent serving Evansville, Vanderburgh County, Warrick County, Gibson County, Spencer County, Dubois County, and Pike County.