Buying your first home is one of the most exciting things you’ll ever do — but it’s also full of decisions that can cost you time, money, and stress if you’re not careful. Here are the five most common mistakes I see first-time buyers make.
1. Skipping Pre-Approval
Some buyers start house-hopping without getting pre-approved first. This is a mistake for two reasons: you don’t actually know what you can afford, and sellers take pre-approved buyers more seriously. A pre-approval letter shows that a lender has already reviewed your finances and is willing to lend you a specific amount.
2. Overextending Your Budget
Just because a lender approves you for $500,000 doesn’t mean you should spend that much. Consider your lifestyle, savings goals, maintenance costs, and emergency fund. A mortgage payment that stretches you to the limit leaves no room for the unexpected.
3. Ignoring Closing Costs
Closing costs typically run 2–5% of the loan amount. On a $400,000 home, that’s $8,000–$20,000 on top of your down payment. Many first-time buyers are surprised by this. I always make sure my clients know the full picture before they make an offer.
4. Making Big Financial Changes Before Closing
Don’t open new credit cards, buy a car, or change jobs between pre-approval and closing. Any of these can jeopardize your loan. Lenders re-verify your financial profile before closing, and significant changes can cause delays or even denial.
5. Not Shopping for the Best Loan
Different lenders offer different rates and terms. Even a quarter-percent difference in your rate can save you thousands over the life of your loan. That said, you don’t have to do this alone — I’ll show you side-by-side comparisons in a personalized video so you can see the numbers clearly.
The best way to avoid these mistakes? Work with a loan officer who explains the process before you’re in the middle of it — and someone you feel comfortable calling with questions. That’s exactly what I do.