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First-Time Home Buyer Checklist — Financial & Inspection Essentials

Most first-time buyers focus on the house and forget the money. The real risk is not picking the wrong house — it's being blindsided by closing costs, hidden defects, or a mortgage you cannot afford.

Before You Start Looking

  1. Get pre-approved for a mortgage — not pre-qualified. Know your real budget (5-10% down minimum in Canada).
  2. Check your credit score — Equifax or TransUnion. Below 680? Fix this first (takes 3-6 months).
  3. Save for down payment + closing costs — down payment is 5-20%, but closing costs (legal, inspections, title insurance, land transfer tax) add 1.5-4% on top.
  4. Get a property condition inspection — non-negotiable. $400-600 investment catches $50k+ in hidden problems (roof, foundation, electrical).
  5. Hire a real estate lawyer — in Canada, this is essential (not optional). They review title, contracts, and protect you legally.

Red Flags During Home Search

At Closing — Verify These

  1. Title is clear (no liens, encumbrances) — your lawyer confirms this.
  2. All promised repairs are actually done — final walk-through the day before closing.
  3. Closing costs match your estimate — title insurance, legal fees, property tax adjustments.
  4. You have home insurance in place before signing — required by lender.
  5. Keys, garage remotes, and manuals are handed over.

After You Buy — First 30 Days

Pro tip: In Canada, closing costs are typically split: buyer pays legal (~$1,200–$2,000), land transfer tax (Ontario = ~1.5% of price), title insurance (~$300–$600), home inspection (~$500), and appraisal (~$300). Budget 1.5–4% of purchase price total. Never skip the home inspection to save $500 — it is the cheapest insurance you will buy.

What you need

Home Insurance Quote (First-Time Buyer Package)

Essential — required by lender before closing. Get 3+ quotes. First-time buyers often qualify for discounts (~$800–$1,500/year for $300k home).

$800–$1,500/year
Home Inventory Checklist & Camera

Optional but smart — photograph all rooms, closets, appliances (serial numbers), and valuable items. Use for insurance claims. Phone camera works; document in spreadsheet.

$0
Home Appraisal (Lender-Ordered)

Essential — lender requires this to verify the house is worth the loan amount. Cost typically rolled into closing or paid upfront (~$300–$500).

$300–$500
Credit Score Report (Equifax or TransUnion)

Essential before mortgage pre-approval — know your score and any errors. Free annually; paid monitoring ($15–$25/month) catches fraud early.

$0–$25
Mortgage Pre-Approval Letter

Essential — shows sellers you are serious and tells you your real max budget. Free from any Canadian bank or mortgage broker. Takes 1-3 days.

$0
Radon Test Kit

Highly recommended — radon is a colorless, odorless radioactive gas found in basements across Canada. Health Canada recommends testing. DIY kit (~$20) or professional test (~$150).

$20–$150
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