Mistake 1: Not getting pre-approved before house hunting
There’s a difference between pre-qualification (a rough estimate based on self-reported info) and pre-approval (an actual lender decision based on verified financials). Shopping for homes without pre-approval means you’ll fall in love with properties you can’t get a mortgage on — and you won’t be taken seriously by sellers in competitive markets.
Mistake 2: Draining savings for the down payment
First-time buyers often scrape together everything for a 20% down payment — and then have nothing left for closing costs (2–5% of the loan), moving costs, repairs, and the emergency fund every homeowner needs. Many loan programs accept 3–3.5% down. Running dry is riskier than a slightly higher monthly payment.
Mistake 3: Skipping (or undervaluing) the home inspection
A home inspection costs $300–$500. It can reveal $30,000 in necessary repairs. Buyers in hot markets sometimes waive inspections to win bidding wars. This is almost always a mistake. If you must waive, at least do a pre-offer walkthrough with a contractor.
Mistake 4: Not shopping multiple lenders
Getting one mortgage offer is like buying the first car you test drive. Studies consistently show that getting 3–5 mortgage quotes saves an average of $1,500–$3,000 over the life of the loan — sometimes far more. Lenders compete on rates and closing costs. Use that.
Mistake 5: Forgetting about ongoing costs
The mortgage payment is not the full cost of homeownership. Add: property taxes, homeowners insurance, HOA fees (if applicable), maintenance (budget 1–2% of home value per year), and utilities that may be higher than your rental. A $1,800/month mortgage can easily become $2,400+/month in true carrying costs.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice.