Buying your first home in Indiana is an exciting milestone, especially if you’re relocating from another state. The Hoosier State offers affordable housing options, friendly communities, and a straightforward buying process compared to many markets. This comprehensive timeline walks you through the entire journey from initial planning to getting your keys, with special considerations for those new to Indiana.

6-12 Months Before Purchase: Preparation Phase

Financial Groundwork

Check your credit score: Aim for 620+ for conventional loans, though FHA loansmay accept scores as low as 580

Begin saving for down payment: While 20% down is ideal, many Indiana first-time buyers use programs requiring just 3-3.5% down

Review your debt-to-income ratio: Most lenders prefer less than 43% of yourincome going toward debt payments

Create a housing budget: Factor in not just mortgage but also property taxes,insurance, utilities, and maintenance

Research Indiana property taxes: These vary significantly by county (rangingfrom approximately 0.8% to 1.2% of assessed value)

Research Phase

Explore different Indiana communities: Consider commute times, schooldistricts, amenities, and property tax rates

Begin monitoring housing markets: Track median prices and how quicklyhomes sell in target areas

Research first-time buyer programs: Indiana offers several state-specificassistance options (see special programs section below)

Consider job relocation timing: If moving to Indiana for work, coordinate homepurchase timing with employment start

Pro Tip: If relocating from out of state, plan an extended visit to experience potentialneighborhoods in person. Stay in short-term rentals in different areas to get agenuine feel for communities.

3-6 Months Before Purchase: Getting Serious

Financial Preparations

Get pre-approved for mortgage: Work with an Indiana-licensed mortgagelender who understands local markets

Determine exact budget: Based on pre-approval, refine your price range andmonthly payment comfort zone

Set aside closing cost funds: In Indiana, expect 2-5% of purchase price (lowerthan many coastal markets)

Research homeowners insurance: Indiana rates are typically below nationalaverage, but vary by location

House Hunting Preparations

Create must-have vs. nice-to-have list: Prioritize your needs vs. wants in aproperty

Research Indiana-specific considerations:Basement vs. crawl space vs. slab foundation

Well water vs. municipal water

Septic system vs. sewer connection

Age of home (many Indiana communities have historic housing stock)

Connect with a local real estate agent: Find someone with expertise in yourtarget communities

Pro Tip: Indiana experiences all four seasons distinctly. Consider viewing propertiesin different seasons if possible, or ask specific questions about seasonal maintenancerequirements (snow removal needs, basement moisture issues, etc.).

2-3 Months Before Purchase: Active House Hunting

Finding Your Home

Begin touring homes: Plan dedicated time for showings, especially if visitingfrom out of state

Attend open houses: Great way to see multiple properties efficiently

Explore different neighborhoods: Visit at various times of day/week to getaccurate community feel

Research schools if applicable: Indiana’s school quality varies significantly bydistrict

Consider commute times: Test actual drives during rush hour if working on-site

Making Offers

Research comparable sales: Indiana real estate can vary dramatically evenwithin small geographic areas

Determine initial offer strategy: Your agent can advise on appropriate offeringprice based on local market conditions

Prepare for possible multiple-offer situations: Some Indiana markets(particularly Indianapolis suburbs) can be competitive

Understand contingencies: Inspection, financing, and appraisal contingenciesprotect you as a buyer

Pro Tip: If relocating from a higher-cost market, be careful not to overbid out of habit.While some Indiana areas see competitive bidding, overall the market tends to bemore moderate than coastal cities.

30-45 Days Before Closing: Under Contract Phase

Inspections

Schedule home inspection: Typically $300-500 in Indiana markets

Consider specialized inspections if needed:Radon testing (parts of Indiana have elevated levels)

Well and septic inspections (for rural properties)

Termite/wood-destroying insect inspection (often required by lenders)

Review seller’s property disclosure: Indiana law requires detailed disclosure ofknown issues

Negotiate repairs if necessary: Your agent will help determine market-appropriate requests

Finalizing Financing

Complete full mortgage application: Submit all required documentation to yourlender

Lock in interest rate: Discuss timing with your lender based on marketconditions

Provide additional documentation as requested: Respond promptly to keepprocess moving

Schedule closing cost funds transfer: Determine whether wire transfer orcashier’s check is preferred

Insurance and Utilities

Secure homeowners insurance policy: Required before closing

Set up utilities for transfer: Electric, gas, water, sewer, trash, internet

Change address with USPS: Can be done up to 90 days in advance

Plan moving logistics: Book movers or rental truck if needed

1-2 Weeks Before Closing: Final Preparations

Pre-Closing Steps

Complete final walkthrough: Typically done within 24 hours of closing

Review Closing Disclosure: Sent by lender at least 3 business days beforeclosing

Verify closing funds are ready: Wire transfer should be initiated 1-2 days beforeclosing

Prepare identification: Valid government-issued photo ID required at closing

Confirm closing time and location: Closings typically occur at title companyoffices in Indiana

Moving Coordination

Confirm moving details: Finalize dates with movers or truck rental

Begin packing non-essentials: If currently in temporary housing, considerstorage options

Create moving day plan: Especially important if relocating from out of state

Closing Day: Becoming a Homeowner

At the Closing Table

Sign closing documents: Typically takes 1-2 hours

Pay closing costs: Via wire transfer or cashier’s check

Receive keys to your new home: Immediate access in most cases

Record deed transfer: Handled by title company (typically same day in Indiana)

After Closing

Change locks: For security purposes

Set up home security if desired: Many Indiana communities have low crimerates, but security systems provide peace of mind

Complete change of address with remaining accounts: Banks, credit cards,insurance, etc.

Register to vote at new address: Can be done online through Indiana VoterPortal

Update driver’s license: Required within 60 days of establishing Indianaresidency

Register vehicle in Indiana: Required within 60 days for new residents

Special Indiana Programs for First-Time Buyers

State Housing Authority Programs

First Home Program: Offers down payment assistance up to 6% of purchaseprice for qualified buyers

Next Home Program: Provides 3-4% down payment assistance with competitiveinterest rates

Mortgage Credit Certificate: Tax credit of up to $2,000 annually for qualifiedbuyers

Local Programs

Indianapolis Neighborhood Housing Partnership: Offers down paymentassistance within Marion County

Community Homebuyer Programs: Many Indiana cities have local assistanceoptions including Lafayette, Fort Wayne, and Evansville

Employer Assistance: Several major Indiana employers offer homebuyingassistance in specific areas

Federal Programs Available in Indiana

FHA Loans: Popular with first-time buyers, requiring just 3.5% down paymentwith credit scores of 580+

USDA Rural Development Loans: Zero down payment option for properties ineligible rural areas (covers large portions of Indiana)

VA Loans: Zero down payment for qualifying veterans and service members

Understanding Indiana’s Unique Real Estate Features

Property Taxes

Indiana property taxes are capped by constitutional amendment at:

1% of assessed value for primary residences

2% for rental properties and second homes

3% for business properties

However, this doesn’t include special assessments, which can raise the effective rate.Various exemptions are available, including a significant homestead deduction forprimary residences.

Closing Costs

Indiana’s closing costs are typically lower than national averages, ranging from 2-5%of the purchase price. The state’s transfer tax is particularly low at just $0.50 per$500 of property value.

Disclosure Requirements

Indiana has robust seller disclosure laws, requiring detailed information about knownproperty issues. This transparency benefits first-time buyers who might not knowwhat to look for.

Well and Septic Considerations

Many Indiana properties, particularly in rural areas, have private wells and septicsystems rather than municipal services. Special inspections and maintenanceconsiderations apply.

Common Timeline Adjustments

For Out-of-State Buyers

Consider extending the closing timeline to accommodate long-distance logistics

Plan for virtual showings and digital document signing if unable to visit in person

Budget for temporary housing if job relocation timeline doesn’t align perfectlywith home purchase

For Competitive Markets

Be prepared to act quickly in hot markets like Carmel, Fishers, or Zionsville

Consider pre-underwriting (stronger than pre-approval) to strengthen offers

Possibly waive certain contingencies (though this involves higher risk)

For New Construction

Extend timeline by 4-8 months depending on builder and complexity

Include additional inspections at key construction phases

Prepare for possible delays due to materials or labor issues

Financing Your Indiana Home Purchase

Understanding mortgage options is critical for first-time homebuyers in Indiana. First Option Mortgage of Indianapolis specializes in helping first-time buyers navigate theprocess, offering:

Personalized loan recommendations based on your financial situation

Access to first-time buyer programs with low down payment requirements

Expertise in Indiana-specific housing assistance programs

Single point of contact throughout the process, avoiding the frustration of beingpassed between departments

Our experienced mortgage professionals take the time to understand your goals andneeds on a personal level, setting up mortgage loans that comfortably fit yourbudget.

Conclusion

Buying your first home in Indiana typically takes 3-6 months from serious shopping toclosing, though preparation may begin a year or more in advance. By following thistimeline and working with experienced local professionals, you can navigate theprocess smoothly and join the ranks of satisfied Indiana homeowners.

Remember that every home buying journey is unique, and flexibility is key—especiallywhen relocating from another state. With proper planning and the right team of

professionals, your transition to Indiana homeownership can be a rewardingexperience.