Life events · Buying a home

Financial checklist for your first home purchase.

The costs nobody warns you about, in the order they hit. Educational only — not financial advice.

A home purchase is the largest transaction most people ever make, and it's full of costs that show up after the down payment. The goal here is no surprises: know the real all-in number, lock the rate at the right moment, and shop the pieces that are actually shoppable.

The real cost — beyond the down payment

1. Down payment. 20% avoids PMI, but isn't required — many loans allow 3–5% down. Less down means PMI (private mortgage insurance) until you reach ~20% equity.
2. Closing costs. Typically 2–5% of the price — lender fees, title, appraisal, taxes, prepaid insurance. On a $400K home that's $8K–$20K, due at closing, on top of the down payment.
3. Cash reserves. Lenders often want to see a few months of payments in the bank after closing. Don't drain every account to maximize the down payment.
4. Moving + immediate repairs. Budget for the move and the things you'll discover in week one.

The monthly number is bigger than "principal + interest"

Your real monthly cost is PITI: Principal, Interest, Taxes, and Insurance — plus PMI if under 20% down, plus HOA if applicable. Property taxes and insurance can add hundreds a month and rise over time. Budget off PITI, not the bare mortgage payment a calculator first shows you.

The rate-lock decision

• What a lock does. Freezes your rate (typically 30–60 days) so a rate rise before closing doesn't hit you.
• When to lock. Once you're under contract with a closing date, locking removes risk. Trying to time the bottom is a gamble; certainty is usually worth more than a fraction of a point.
• Points. Paying "points" buys a lower rate up front — it pays off only if you keep the loan long enough to recover the cost. Run the break-even.

Shop the shoppable pieces

• The mortgage. Get quotes from at least three lenders the same day (rates move daily). A quarter-point difference is real money over 30 years.
• Homeowner's insurance. Fully shoppable — get multiple quotes; bundling with auto often helps.
• Title insurance. In many states you can shop this too; it's a meaningful line item.

What not to do

• Don't open new credit or change jobs during underwriting. A new car loan or card can blow up your approval days before closing.
• Don't drain your emergency fund for a bigger down payment. A house generates expenses; you need a cushion.
• Don't skip the inspection to win a bid unless you fully understand the risk.
• Don't buy at the top of what you're approved for. Approval is a ceiling, not a target.

When to get a human

A fee-only advisor can help if a home purchase is competing with other big goals (retirement, a growing family) and you want to know what you can truly afford without derailing the rest of the plan.

Find a fee-only advisor →

Already own? Check whether refinancing makes sense

If rates have moved since you locked, run the break-even before you pay to refinance.

Run the Refi Readiness tool →

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This page is educational only and does not constitute personalized financial advice. Loan terms, PMI, and closing costs vary by lender, loan type, and state. Talk to a licensed mortgage professional before making final decisions.