10 Costly Mistakes First-Time Homebuyers Make

1. Not Getting Pre-Approved First

Pre-approval tells you exactly how much you can borrow. Without it, you waste time looking at homes you cannot afford.

2. Only Comparing Interest Rates

APR matters more than the rate. A lower rate with higher fees can cost more than a slightly higher rate with low fees.

3. Ignoring Total PITI

Your principal and interest payment is just part of the picture. Taxes, insurance, HOA, and PMI can add 30-50% on top.

4. Draining Savings for Down Payment

Keep 3-6 months of expenses in reserve. Lenders may require cash reserves anyway.

5. Making Big Purchases Before Closing

Do not buy a car, furniture, or anything on credit before closing. Lenders re-check your credit right before funding.

6-10

Skipping inspection, not shopping lenders, choosing wrong loan type, ignoring closing costs, and not factoring in maintenance costs (1-2% of home value annually).