Home Buying Readiness Checklist
A 6-month countdown from credit-score audit through closing day, with a pre-approval document checklist, a neighborhood comparison worksheet, and a US/Canadian first-time-buyer program reference. Designed for the fridge or the house-hunting binder.
Size the budget first with the Home Affordability Calculator, and read How to Prepare Financially to Buy a House for the reasoning behind each phase.
Home Buying Readiness Checklist (6-Month Countdown)
Start the T-180 phase six months before you want to make offers. Work each phase in order; the sequence exists because credit changes take months to register and pre-approval letters expire in 60 to 90 days.
T-180 Days (6 Months Out): Credit and Savings Audit
| Done | Task | Date / notes |
|---|---|---|
| Pull credit reports from all 3 bureaus (US: annualcreditreport.com; Canada: Equifax + TransUnion direct) | ||
| Dispute any errors in writing (disputes take 30 to 60 days to resolve) | ||
| Calculate current debt-to-income ratio (monthly debt payments / gross monthly income) | ||
| Set the full savings goal: down payment + closing costs + 3 months of reserves | ||
| Open or top up the savings vehicle (Canada: open an FHSA if you have not; the contribution room clock starts when you do) | ||
| Set an automatic transfer on every payday toward the goal |
T-120 Days (4 Months Out): Debt Paydown and Lender Shortlist
| Done | Task | Date / notes |
|---|---|---|
| Pay high-utilization credit cards below 30% utilization (below 10% is better) | ||
| Do NOT close old accounts and do NOT open new credit from here through closing | ||
| Build a lender shortlist (3 to 5: your bank, an independent broker, an online lender) | ||
| Research first-time-buyer programs (US: FHA / VA / USDA / state HFA; Canada: CMHC tiers / HBP / FHSA / provincial LTT rebate) | ||
| Bring any past-due account current |
T-90 Days (3 Months Out): Pre-Qualification and Agent Selection
| Done | Task | Date / notes |
|---|---|---|
| Get pre-qualified at top 3 lenders (soft pull, self-reported, free) | ||
| Compare rate quotes side by side (same loan type, term, and points) | ||
| Interview 3 to 5 buyer's agents (ask about local market, negotiation record, fees) | ||
| Sign a buyer's agent representation agreement |
T-60 Days (2 Months Out): Formal Pre-Approval Letter
| Done | Task | Date / notes |
|---|---|---|
| Gather documents: 2 years W-2 (US) / T4 (Canada) | ||
| Gather documents: 2 months of bank statements, every account | ||
| Gather documents: 30 days of pay stubs + employment verification letter | ||
| Gather documents: government photo ID (+ self-employed: 2 years tax returns / Notices of Assessment) | ||
| Submit formal pre-approval application to the best 1 to 2 lenders | ||
| Receive pre-approval letter (valid 60 to 90 days); note the expiry date here | ||
| Start serious house hunting within the letter's window |
T-30 Days (1 Month Out): Active Offer Phase
| Done | Task | Date / notes |
|---|---|---|
| Tour homes; keep notes per address (use the neighborhood worksheet below) | ||
| Submit offers with the pre-approval letter attached | ||
| Include the inspection contingency (do not waive it to win a bidding war) | ||
| Negotiate; respond to counteroffers in writing | ||
| On acceptance: deposit earnest money with escrow/lawyer per the contract |
T-14 Days: Inspection and Appraisal
| Done | Task | Date / notes |
|---|---|---|
| Book the home inspection (USD 400 to 700 / CAD 500 to 900); attend it in person | ||
| Review the inspection report; list defects by cost severity | ||
| Negotiate repairs or credits based on the report | ||
| Appraisal scheduled by the lender | ||
| Review the appraisal; if it comes in low, renegotiate the price or be ready to walk |
T-7 Days: Final Walkthrough and Close Prep
| Done | Task | Date / notes |
|---|---|---|
| Final walkthrough: verify agreed repairs are done and condition is unchanged | ||
| Review the closing disclosure (US) or commitment letter and statement of adjustments (Canada) line by line | ||
| Transfer closing funds by wire to the title/escrow company or lawyer's trust account | ||
| Verify wire instructions BY PHONE at a number you found independently (closing wire fraud is common) | ||
| Arrange home insurance effective on the close date (lender will require proof) |
Closing Day
| Done | Task | Date / notes |
|---|---|---|
| Bring government photo ID | ||
| Bring cashier's check or wire receipt for any remaining closing costs | ||
| Bring the signed closing disclosure (US) or commitment letter (Canada) | ||
| Sign closing documents | ||
| Receive keys; record meter readings and the state of the property same-day |
Neighborhood Comparison Worksheet
| Neighborhood | Median home price | Property tax rate | School rating | Commute time | HOA monthly | Notes |
|---|---|---|---|---|---|---|
School ratings: US, GreatSchools 1 to 10; Canada, provincial rankings (e.g. Fraser Institute). Property tax examples for calibration: Texas 2.0%+, California about 1.0%, Iowa about 1.5%; Vancouver about 0.30%, Toronto about 0.66%, Ottawa about 1.05%, Halifax about 1.12%.
First-Time-Buyer Programs Quick Reference
| Country | Program | Key terms |
|---|---|---|
| US | FHA | 3.5% down from a 580+ score; MIP about 0.85%/yr + upfront premium, usually for the life of the loan |
| US | VA | 0% down for veterans; no monthly mortgage insurance; funding fee about 2.15% on first use |
| US | USDA | 0% down in eligible rural areas; income limits apply |
| US | Conventional 3% first-timer | Fannie Mae HomeReady / Freddie Mac Home Possible; cancellable PMI; income limits |
| US | State HFA programs | Down-payment assistance grants and second loans; check your state housing finance agency |
| Canada | CMHC default insurance | Mandatory under 20% down: 4.0% of loan (5 to 9.99% down), 3.1% (10 to 14.99%), 2.8% (15 to 19.99%), ADDED TO LOAN PRINCIPAL |
| Canada | RRSP Home Buyers' Plan (HBP) | Withdraw up to $35,000/person ($70,000 couple) tax-free; repay over 15 years |
| Canada | FHSA (since 2023) | $8,000/yr contribution, $40,000 lifetime; tax-deductible going in AND tax-free coming out for a first home |
| Canada | Provincial LTT rebates | Ontario up to $4,000 (Toronto adds a municipal rebate); BC up to $8,000; Quebec varies by municipality |
| Canada | GST/HST rebate | Partial rebate on new-construction purchases; confirm if the builder's price already nets it |
Closing-Cost Reference
| Market | Typical range | What it covers |
|---|---|---|
| US | 2 to 5% of purchase price | Loan origination, title insurance, escrow setup, transfer tax, recording fees, prepaid tax and insurance |
| Canada | 1.5 to 4% of price + provincial LTT | Legal fees, title insurance, adjustments; LTT: Ontario 0.5 to 2.5% sliding, BC 1 to 3%, Quebec 0.5 to 1.5%, Atlantic varies; GST/HST on new construction |
| Both | 3 to 6 months reserves | Full monthly housing cost (mortgage + tax + insurance + utilities) in cash after closing, separate from the emergency fund |
Notes
Frequently Asked Questions
When should I start this home-buying checklist?
Start the T-180 column six months before you want to make offers; start twelve months out if your credit needs repair or your down payment is far from target. The phases are sequenced around hard timing constraints: credit improvements take 2 to 6 months to register on your score, lenders verify 2 months of bank statements, and a pre-approval letter is only valid 60 to 90 days, so it belongs at T-60, not at the start.
What documents do I need for mortgage pre-approval?
The standard package both US and Canadian lenders want: 2 years of W-2s (US) or T4s (Canada), your 2 most recent bank statements for every account, 30 days of pay stubs, an employment verification letter, government photo ID, and documentation for any other income or large recent deposits. Self-employed buyers add 2 years of tax returns (US) or Notices of Assessment (Canada). Gather everything at T-60 so the formal application takes days, not weeks.
How much should I budget for closing costs?
US: typically 2% to 5% of the purchase price, covering loan origination, title insurance, escrow setup, transfer and recording fees, and prepaid tax and insurance. Canada: 1.5% to 4% of the price for legal fees, title insurance, and adjustments, PLUS provincial land-transfer tax: Ontario 0.5 to 2.5% sliding (Toronto adds a municipal LTT on top), BC 1 to 3%, Quebec 0.5 to 1.5%, with GST/HST applying on new construction. First-time buyers claw some back through rebates: up to $4,000 in Ontario plus the Toronto municipal rebate, and up to $8,000 in BC. All of this is cash on top of the down payment.
What is the difference between US PMI and Canadian CMHC insurance?
Both apply when your down payment is under 20%, but the mechanics differ completely. US PMI is billed monthly (roughly 0.5 to 1.5% of the loan per year) and can be removed once you reach about 20% equity. Canadian CMHC default insurance is a one-time premium of 2.8% to 4.0% of the loan (4.0% for 5 to 9.99% down, 3.1% for 10 to 14.99%, 2.8% for 15 to 19.99%) that is added to your loan principal: you pay interest on it for the entire amortization and cannot cancel it later. Reaching 20% down avoids both. Model the difference live in the Home Affordability Calculator.