Connecticut First-Time Home Buyer Guide

Your roadmap: 8 steps to buying a home in Connecticut

1. Get pre-approved. A lender verifies your income, credit and assets and sets your price range.
2. Know your payment. Build your monthly number from principal, interest, taxes, insurance and any fees, and explore CHFA down payment help.
3. Define your criteria and search. Sort your must haves, nice to haves, do not cares and deal breakers, then tour homes with your agent.
4. Make an offer. Your agent negotiates price, your deposit, your contingencies and the closing date. Your attorney reviews it once it is signed.
5. Inspect. Home, radon, septic or well, and pest inspections happen inside your inspection deadline.
6. Clear the appraisal and mortgage contingency. Your lender appraises the home and issues your written loan commitment.
7. Line up insurance and plan for taxes and closing costs. You bind your policy and confirm your cash to close.
8. Close. You sign, fund and receive the keys, typically 45 to 60 days after your offer is accepted.

Step 1: Get pre-approved and set your budget

A pre-approval letter tells sellers you are a serious, financed buyer, and it gives you a price range you can trust before you tour a single home.

Pre-qualification vs. pre-approval. A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval means the lender has reviewed your documents and credit, and it is the letter sellers expect with an offer.

What a lender will ask for

• Pay stubs for the last 30 days and W-2s or tax returns for the last two years
• Two months of bank and savings statements
• Photo ID and Social Security number for the credit check
• Explanations for any large deposits, plus gift letters if family is contributing to your down payment
• Self-employed buyers: two years of full tax returns and a year-to-date profit and loss statement

Build your monthly number, not just your price

Your payment is more than principal and interest. Add property taxes, homeowner's insurance, mortgage insurance if your down payment is under 20%, and any HOA or condo fees. Connecticut property taxes are set town by town, so the same price can carry a very different monthly cost from one town to the next. Ask your agent for the current tax bill on every home you tour.

Set your comfort number first. Decide what monthly payment feels comfortable alongside your other goals, then let your lender show you which price range fits. Your pre-approval is the maximum; your budget is yours to set.

Keep a cash reserve. Plan for your down payment, closing costs, inspections and moving, and keep a cushion for the first repairs after you move in.

Compare lenders. Request a Loan Estimate from at least two or three lenders, including one that participates in CHFA programs, and compare rate, fees and monthly payment side by side.

Loan options at a glance

Your lender will recommend the loan that fits your finances. These are the main choices for a Connecticut purchase.

CHFA is not a separate loan type. It pairs with conventional, FHA, VA and USDA financing through participating lenders, which is why it deserves its own section below. Minimums above are typical; your lender confirms the exact figure for your credit profile and the property.

CHFA and down payment help in Connecticut

The Connecticut Housing Finance Authority (CHFA) offers below-market mortgage rates, down payment and closing cost assistance, and free homebuyer education. You apply through one of the nearly 70 CHFA-participating lenders; CHFA does not lend directly. Figures below are as of October 2026, and programs and funding change, so your lender confirms current terms. See CHFA's homeownership page for the latest.

Who qualifies

• You are a first-time buyer, meaning you have not owned a home in the past three years. The three-year rule is waived in federally designated target areas.
• The home is your primary residence, not an investment or vacation property.
• Your gross income and the home's sales price are within CHFA's limits, which vary by region and household size.
• Eligible homes include single-family homes, townhouses, planned unit developments, approved condos, and qualifying two- to four-unit homes.
• You complete a free CHFA homebuyer education class before closing. Two- to four-unit buyers also take a landlord education workshop.

Down payment assistance programs

Time To Own is funded by the state for a limited time, so apply early with your lender. CHFA's Time To Own page posts a weekly funding dashboard. More CHFA programs worth asking about: Teachers Mortgage Assistance, Police Homeownership, Veterans and Military Service Members, renovation loans, Home of Your Own, and Next Move with Deferred DPA.

Good to know

• Buying in a target area can reduce your CHFA rate by 0.25%.
• In rare cases, a federal recapture tax can apply if you sell within nine years, earn a profit, and your income is above the federal threshold at sale. Your lender explains how this works.
• Your town or employer may also offer down payment help. Ask your local economic development office and your benefits department.

CHFA contacts: 1-844-CT1-HOME, (860) 721-9501. Homeownership questions: (860) 571-3541. Education classes: (860) 571-4396.

Finding the right house: your home criteria

Write your criteria down before you tour. It keeps every showing focused and gives your agent a clear target. Sort every item into one of four lists.

Know what you can change. Paint, flooring, fixtures and many kitchens and baths can be updated later. Location, lot, layout, and the foundation and structure are very hard or expensive to change, so give those the most weight.

Connecticut items to add to your list

• Heat source: oil, gas, electric or heat pump, and the age of the system
• Town sewer and water vs. septic and well
• Year built, since homes built before 1978 carry lead-paint disclosure and some years raise foundation questions
• Flood zone status and any past water in the basement
• Annual property taxes and any HOA or condo fees

Review your lists after your first few showings. Most buyers refine them once they see what their budget buys, and your agent will adjust your search alerts to match. When you are ready, send Zack your criteria through the buyer contact form.

Working with your agent and attorney

Your buyer's agent. Connecticut has required a written buyer agency agreement for decades, and national MLS rules now also call for one before you tour a home with an agent. Your agreement spells out how long it lasts, the services provided, and how your agent is paid. Compensation is negotiable and is not set by law. Read the compensation terms carefully: if the seller offers less than the amount in your agreement, the agreement controls who covers the difference. Have your attorney review anything you are unsure about before you sign.

Your attorney. Connecticut is an attorney state. Your attorney reviews the purchase contract, orders the title search and municipal search, acts as your title agent, prepares your closing figures with the lender, and files your deed and mortgage with the town clerk. Your attorney comes on board once the contract is signed, so have a few names ready and ask for a fee quote in writing.

How we work together. Your agent finds and shows homes, runs comparable sales so you offer with confidence, negotiates the deal, and coordinates your lender, attorney and inspectors through closing.

Searching and making an offer

Read the Property Condition Report first

Connecticut sellers of most residential homes of four units or fewer must give you a written Residential Property Condition Report before you sign a binder or contract. If the seller does not, the contract must credit you $500 at closing (Connecticut General Statutes 20-327c). The report is the seller's own statement of what they know, not a warranty and not a substitute for your inspections.

Other disclosures to expect

• Lead paint: for homes built before 1978, the seller discloses known lead-paint hazards and gives you an EPA pamphlet, and you have an opportunity to test for lead, typically 10 days.
• Foundation condition report: in towns identified by the Capitol Region Council of Governments as affected or potentially affected by crumbling concrete foundations (caused by the mineral pyrrhotite), the seller provides a separate foundation report. Your inspector should look at the foundation closely in any home built between roughly 1983 and 2011 in central and northeastern Connecticut. See the state's crumbling foundations resources.
• Mold and other items covered by the state form.

What goes into your offer

• Purchase price and your earnest money deposit
• Financing, inspection, and title and municipal search contingencies, each with a firm deadline
• Proposed closing date, commonly 45 to 60 days out
• What stays with the home, and any seller credits you are requesting

Your agent writes the contract, so your offer terms and contingency dates are set with your agent. Once it is signed, your attorney reviews it and takes over the title and closing work.

How home inspections work in Connecticut

Connecticut law does not require a buyer to get a home inspection, and conventional lenders generally do not require one either, but it is standard practice and the best protection you have. Book it as soon as your offer is accepted so you finish well inside your contingency deadline.

1. Your agent books a licensed inspector as soon as your offer is accepted, and you choose the inspector yourself.
2. The inspection takes about two to three hours, and you are welcome to attend. Walking through with the inspector is the best way to learn the home.
3. You receive a written report, usually within 24 hours, with photos and a list of findings.
4. Your agent sorts the findings into safety issues, major systems, and routine maintenance.
5. If you want repairs, credits or a price change, your agent sends a written request to the seller before your inspection deadline.
6. You and the seller agree on a resolution in writing, or you decide to cancel under your inspection contingency while it is still active.

Costs are typical ranges and vary by home size, age and location. After the reports, your agent helps you decide whether to proceed, ask the seller for repairs or a credit, or renegotiate the price. Safety and system issues are the strongest requests. Make any request in writing, inside your inspection deadline.

The appraisal and the mortgage contingency

These two protect you from paying more than a home is worth and from being bound to a purchase you cannot finance. Both work only inside the dates written in your contract.

How the appraisal works

Your lender orders it from a licensed appraiser, who compares the home with recent nearby sales and reports its value. The lender bases your loan on the lower of the appraised value or the purchase price, so the appraisal protects both of you.

If the appraisal comes in low, for example $380,000 on a $400,000 contract, you have a $20,000 gap and these options:

1. Ask the seller to lower the price to the appraised value.
2. Split the difference with the seller, or cover the gap with your own cash.
3. Ask the lender for a reconsideration of value if your agent finds stronger comparable sales.
4. Cancel under your financing or appraisal protection, if your contract has it and you act by the deadline.

How the mortgage contingency works

Your contract sets a mortgage commitment date. By that date your lender must issue a written loan commitment. If it cannot, you notify the seller in writing, through your attorney, before the date passes, and you may cancel with your deposit returned. If the date passes and you have not given notice, the contingency ends and you are bound to the contract.

Ways to keep your loan on track

• Apply within a day or two of an accepted offer, and send every document your lender asks for right away.
• Keep your finances unchanged until closing (see Protect your approval).
• Ask your lender for a status update a week before your commitment date, and ask your attorney to request a written extension early if the lender needs more time.

Contract wording varies, so your attorney confirms exactly how these dates and notices work in your contract.

How your deposit is protected

Your deposit sits in escrow, not with the seller, and goes toward your down payment or closing costs if you close. It is returned to you when you cancel correctly under a contingency, and your contingency dates are what protect it.

Five habits that protect your deposit

1. Put every contingency date on your calendar the day you sign, with reminders three days before each.
2. Give notices in writing and through your attorney, exactly as the contract describes.
3. Ask for a written extension before a date passes if a report or loan decision is still pending.
4. Think carefully before waiving any contingency, and discuss it with your agent and attorney first.
5. Confirm who holds your deposit and in what account when you sign.

If the buyer and seller disagree about who gets the deposit, it stays in escrow until they resolve it. Your attorney handles that process.

Closing day and after closing

Before closing

• Your attorney completes the title and municipal searches and works with your lender on your final closing figures.
• You line up homeowner's insurance, which your lender requires before funding.
• You do a final walkthrough, typically within 24 hours of closing, to confirm the home's condition and that agreed repairs are done.
• You receive your Closing Disclosure and review it with your attorney.

At the closing table

Bring a government photo ID. Your attorney explains your loan documents, you sign, funds transfer to the seller's attorney, and your attorney records the deed and mortgage with the town clerk. Many Connecticut closings are completed with the seller's attorney delivering documents once your funds are confirmed, so you may not meet the seller at all.

After you have the keys

• Keep your closing documents, inspection reports and receipts in one safe place.
• Set aside a monthly maintenance fund for repairs and upkeep.
• Watch for your town's property tax bills, which are billed in installments. If your lender escrows taxes and insurance, they are included in your mortgage payment.
• Update your address with your bank, employer, insurance, the DMV and the post office.

Closing costs: what you will pay

Budget for your down payment plus closing costs, which commonly run about 2.5% to 4% of the purchase price in Connecticut. That is an approximate range; your lender's Loan Estimate gives your exact figures.

The conveyance tax is usually the seller's cost. Connecticut charges a state conveyance tax of 0.75% on the first $800,000 of a home's price, 1.25% on the portion from $800,000 to $2.5 million, and 2.25% above that, plus a municipal tax of 0.25% in most towns (up to 0.50% in some). The seller customarily pays, although it can be negotiated in the contract. Connecticut has no separate mortgage tax.

Ways to reduce your cash to close: CHFA assistance (above), seller credits negotiated in your offer, and gift funds from family with a signed gift letter.

Homeowner's insurance

Connecticut law does not require homeowner's insurance, but any lender will, and you need proof of coverage before closing. Start shopping as soon as your offer is accepted.

What a standard policy covers

• The dwelling and other structures on the property
• Your personal belongings
• Liability if someone is hurt on your property
• Additional living expenses if a covered loss makes the home unlivable

What it usually does not cover

• Flood. Standard policies exclude flood damage. Flood coverage is a separate policy through the National Flood Insurance Program or a private insurer (Connecticut Insurance Department flood fact sheet). If the home is in a federally designated high-risk flood zone, your lender will require it, and the usual 30-day waiting period is waived when a lender requires coverage at purchase. Many flood claims come from outside high-risk zones, so ask about flood history and check the flood map for every home.
• Sewer and drain backup, and sump pump overflow. These generally need an added endorsement.

Steps to follow

1. Get at least three quotes, using the home's age, heating system and roof details from your inspection.
2. Ask your agent and inspector about items insurers react to, such as an aging oil tank or older wiring, since they can raise your premium or require updates.
3. Compare coverage limits and deductibles, not just price.
4. Bind your policy before closing and send proof to your lender and attorney.
5. If your lender escrows insurance, your premium is built into your monthly payment.

Property taxes in Connecticut

Your town sets your tax rate and bills you directly, or your lender pays the bill from your escrow account.

How your bill is calculated

1. The town assessor determines your home's fair market value.
2. Connecticut assesses real property at 70% of that value.
3. The town's mill rate is applied to the assessed value. One mill equals $1 per $1,000 of assessed value.

Billing schedule. Connecticut bills on a fiscal year from July 1 to June 30. Bills typically go out in late June, with half due July 1 and half due January 1. Late payments carry interest. At closing, your attorney prorates the current tax period so you and the seller each pay for the days you own the home.

What to check before you buy

• The current tax bill and mill rate for each home, plus any special district or sewer charges
• The date of the town's most recent revaluation, since a future revaluation can change your assessment
• Exemptions you may qualify for, which your town assessor can explain

If you think your assessment is wrong, you can appeal it with your town's Board of Assessment Appeals, and your assessor's office can explain the deadline and process.

Protect your approval until closing

Your lender re-verifies your finances shortly before closing, so keep everything steady from pre-approval through the day you receive your keys.

• Keep your job and income stable, and tell your lender before any change.
• Hold off on new credit: no new cards, car loans or financing for furniture until after closing.
• Keep paying every bill on time and keep your balances where they were.
• Leave large deposits documented and avoid moving money between accounts without a paper trail.
• Send documents to your lender promptly when they ask.
• Keep your down payment and closing funds in the accounts your lender has already reviewed.

Your first-time buyer checklist

• Register for a free CHFA homebuyer education class
• Check your credit reports and correct any errors
• Gather pay stubs, W-2s or tax returns, and two months of bank statements
• Get pre-approved; compare Loan Estimates from two or three lenders, including a CHFA-participating lender
• Ask about CHFA Down Payment Assistance, Time To Own, and any town or employer programs
• Sign your buyer agency agreement and choose your Connecticut attorney
• Set your monthly budget, including property taxes and insurance
• Tour homes and read the Property Condition Report for each one
• Make an offer with firm contingency dates; your agent writes the contract and your attorney reviews it once it is signed
• Schedule inspections within your inspection deadline
• Complete your mortgage application and lock your rate
• Bind homeowner's insurance
• Review your Closing Disclosure and confirm wire instructions by phone
• Do your final walkthrough
• Close, collect your keys, and file your documents

Connecticut home buying glossary