First Time Homebuyer Mistakes (and How to Avoid Them)

After years of helping people buy their first homes, I've noticed the same handful of slip-ups come up again and again. Most are easy to avoid once you know about them. If you're looking up first time homebuyer mistakes, this is the list I share with every buyer before they start touring houses, along with what to do instead.

It's fun to look at listings first, but doing it in that order can set you up for heartbreak. The Consumer Financial Protection Bureau (CFPB) stresses that shopping for a mortgage before you shop for a home is key, because sellers may expect your financing to be lined up within days of accepting an offer. It also notes that a preapproval letter shows sellers you're serious without committing you to a lender.

Do this instead: get pre-approved first, so you know your real budget. I explain the difference between types of letters in pre-approval vs. pre-qualification.

What is the biggest mistake first-time buyers make?

In my experience it's starting to shop before knowing their real budget and cash to close. Getting pre-approved first, and pricing the full monthly payment, avoids most of the surprises.

Should I buy a home without an inspection?

I'd recommend against it. An appraisal estimates value for the lender, but only an inspection tells you about the condition of the house for you. Your agent can explain how the option period works.

Can I change jobs while I'm buying a house?

It can complicate approval, because lenders review your income and employment. If a change is coming, talk with your lender before you decide on timing.

How many lenders should I compare?

The CFPB suggests comparing Loan Estimates from at least three. Because every lender uses the same form, the side-by-side comparison is straightforward.