Buying your first home is exciting, and also a little overwhelming. There are new terms, new deadlines, and a lot of people telling you what to do. After helping buyers through this process, I've noticed that the same handful of missteps come up again and again. The good news is that nearly all of them are avoidable.
None of these mistakes mean a deal is doomed. They're just the things I'd want a friend to know before they start. Here are seven, grouped by when they tend to happen.
Mistakes before you start shopping
1. Looking at homes before getting pre-approved. Falling in love with a house you haven't confirmed you can finance is a stressful way to start. A pre-approval gives you a realistic price range and shows sellers you're a serious buyer. It also lets us spot any surprises early, while there's still time to address them.
2. Assuming you need 20% down. This is the most common myth I hear. Many buyers qualify for programs with much lower minimums, and some may be eligible for down payment assistance, subject to qualification and program availability. Waiting to save 20% can keep people renting far longer than necessary. I break this down in more detail in my post on how much down payment you really need in California.
3. Not checking your credit until you apply. Your credit report can contain errors, old accounts, or balances you forgot about. In many cases, a few months of small improvements can make a meaningful difference in the options available to you. Pull your reports early, review them carefully, and reach out if anything looks unfamiliar.
Mistakes while you're shopping
4. Budgeting only for the purchase price. The sticker price is just the start. Property taxes, homeowners insurance, possible mortgage insurance, HOA dues, and closing costs all affect what owning a home really costs each month and at the closing table. A home that looks affordable on paper can feel tight once everything is added up, so look at the full monthly picture, not just the price.
5. Spending every dollar on the down payment and closing. It can be tempting to put everything toward getting the keys. But homes need repairs, and life doesn't pause after closing. Keeping a cushion of savings after you buy is one of the most practical things you can do to feel comfortable in your new home.
Mistakes after you're under contract
6. Making big financial changes before closing. Opening a new credit card, financing furniture or a car, switching jobs, or moving large sums of money around can all complicate your loan, even after you've been approved. Lenders typically review your finances again before closing. My rule of thumb is simple: if you're about to make a big financial move, call me first.
7. Letting document requests sit. Underwriting often involves follow-up requests for pay stubs, bank statements, or letters of explanation. Slow responses are one of the most common reasons closings get delayed. If you're not sure what's needed or why, just ask. I'm happy to explain. It also helps to know up front which documents you'll need for your application.
What I'd tell a friend
You don't have to know everything before you start. The best thing you can do is talk with someone early, ask plenty of questions, and avoid making major decisions in a vacuum. Every buyer's situation is different, and what works for one person may not fit another, so the details of your own finances are worth a real conversation.
If you're thinking about buying, I'm glad to walk through your options, with no pressure and no obligation. Loan programs and eligibility are subject to qualification, and I'll help you understand where you stand and what a sensible next step looks like.