Skipping Preapproval
Touring homes and even making offers without a preapproval letter wastes time and can cost you the house in competitive markets, where sellers routinely disregard non-preapproved offers.
Not Budgeting for Closing Costs
Many first-time buyers save for a down payment but forget closing costs run an additional 2-5% of the purchase price — leaving them cash-short right before closing.
Making Large Purchases or Opening Credit Before Closing
A new car loan or credit card between preapproval and closing can change your debt-to-income ratio enough to jeopardize final approval — lenders typically re-check credit right before closing.
Skipping the Home Inspection
Waiving an inspection to make an offer more competitive can mean inheriting expensive, hidden problems — a smarter middle ground is often a shorter inspection contingency rather than none at all.
Not Shopping Multiple Lenders
Accepting the first lender quote without comparing at least two or three others is one of the most common — and most expensive — first-time buyer mistakes.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.