Are you excited to buy your first home?
Or are you terrified?
It’s perfectly natural to have these mixed emotions because buying your first home is a big deal.
Between the paperwork, the jargon, and the fear of overpaying, it’s easy to make rookie mistakes. And some of those slip-ups can cost you big time.
Here’s a rundown of the most common first-time homebuyer mistakes—and how you can avoid them like a real estate pro.
Skipping the Pre-Approval
You wouldn’t go car shopping without knowing your budget, right?
Same goes for houses.
Getting pre-approved before you start house hunting gives you a clear price range and shows sellers that you’re serious. Plus, it saves you the heartbreak of falling in love with a house you can’t afford.
Ignoring Hidden Costs
Buying a home isn’t just about the down payment and mortgage.
There’s a whole hidden expenses lurking below the surface.
Many first-time buyers are surprised to discover the additional expenses that come with purchasing a home. You need to budget for closing costs (typically 2-5% of the home price), which include appraisal fees, title insurance, and home inspection.
Even homes marketed as “move-in ready” may require immediate attention like new water heater or fresh paint. And don’t forget moving expenses either;
Letting Emotions Drive the Decision
That sunlit reading nook might make you swoon, but don’t let it blind you.
Always get a thorough inspection and be ready to walk away if the costs to fix issues outweigh the charm.
Forgetting to Shop Around for Lenders
Not all mortgage lenders are created equal.
Even a small difference in your interest rate can save (or cost) you thousands over the life of your loan. Get quotes from at least three lenders before committing.
Overlooking First-Time Buyer Programs
There are so many grants, low-down-payment loans, and tax credits for first-timers—but most people don’t even look into them. Check your state’s housing authority website, or with the help of an AI real estate agent you can get a commission rebate, helping you save thousands of dollars.
Not Researching the Neighborhood
Yes, the house is perfect but is the area?
Visit at different times of day, test the commute, and look around the local Facebook groups to get the real scoop.
Leaving Money on the Table
Here’s one often-missed opportunity: Buyers leaving the buyer’s agent commission (up to $15,000 or more) on the table.
Did you know some companies, like WithJoy.AI, pay the homebuyer instead of the buyer agent’s getting a commission? That’s cash back in your pocket just for buying your next house using their platform.
Waiving Contingencies Just to “Win” the Bid
In a competitive market, it’s tempting to waive inspection or appraisal contingencies to make your offer stand out.
Do not do this. Unless you’re ready to eat the cost of major repairs or cover a gap if the appraisal comes in low, stick to your safeguards.
Underestimating the Power of Negotiation
Everything’s negotiable.
Repair credits, closing costs, even furniture. Don’t be afraid to ask. The worst they can say is no.
Rushing the Process
Buying a home is a marathon, not a sprint.
It’s easy to feel pressured – especially in a hot market – but making a hasty decision can lead to regrets (and costly mistakes). Take a breath and don’t settle just because you’re tired of looking. The right home is worth the wait.
Bottom Line
Buying a home is stressful, but it doesn’t mean you have to make it more stressful for yourself.
Avoid these mistakes, do your homework, and don’t leave free money on the table (looking at you, buyer’s agent rebates).
Now go and conquer that housing market like the savvy first-timer you are.
