First-time home buyer checklist – Indiana & Michigan

Buying your first home is an exciting journey, and we're here to support you every step of the way. This checklist simplifies the process, breaking down the key actions you need to take to turn your dream of homeownership in Indiana or Michigan into a reality. Follow these steps to prepare your finances, explore your options, and move forward with confidence.

This is the first step in your home buying journey. Getting your finances ready helps make the process smoother.

• Save for your home: Open a separate savings account for your down payment and closing costs and set up automatic transfers to help it grow.
• Improve your credit score: Get your free annual credit report from AnnualCreditReport.com and check for errors. Pay your bills on time and lower your credit card debt.
• Know your budget: Figure out your monthly income and expenses to decide what mortgage payment you can afford. Remember to include future costs like taxes and insurance.
• Get a mortgage pre-approval: Collect your financial documents like pay stubs and tax returns. Apply for pre-approval from a lender to know your budget and show sellers you are a serious buyer.

Once your finances are in order, learn about the different loans available.

• Explore loan types: Choose between a fixed-rate mortgage for consistent payments or an adjustable-rate mortgage (ARM) if you might move soon.
• Check government-backed loans: Look into FHA Loans if you have a smaller down payment or VA Loans if you are a veteran or service member.
• Review the Loan Estimate: When you apply for a mortgage, look over the Loan Estimate document to understand all the costs and fees.

Indiana and Michigan both have programs to help first-time home buyers.

• Indiana Programs: Check the Indiana Housing and Community Development Authority (IHCDA) website for down payment assistance. Make sure you meet the income requirements and complete any needed home buyer education.
• Michigan Programs: Look into the Michigan State Housing Development Authority (MSHDA) MI Home Loan program for down payment help up to $10,000. Check the income and purchase price limits for your area.

This is the last stage of buying your home.

• Get pre-approved. A pre-approval letter from a lender like Everwise Credit Union shows you are a serious buyer and gives you a clear borrowing limit.
• Work with a real estate agent: Find a local agent who knows the Indiana or Michigan market.
• Make an offer: Submit a competitive offer on a home that is within your budget.
• Get an inspection and appraisal: Have a professional inspect the home for any problems. Your lender will have the home appraised to confirm its value.
• Finalize and close: Provide any last documents to your lender. Review your Closing Disclosure three days before closing, then sign the final papers to get the keys to your new home.