First Time Homebuyers
First-Time Homebuyer Mistakes to Avoid
Learn common mistakes first-time homebuyers make during the mortgage process and how to avoid them, from credit missteps to underestimating costs.
Updated 2026-08-17| Applies to: First-time buyers preparing to search for a home and apply for a mortgage.
The short answer
Common first-time homebuyer mistakes include making major credit or job changes during the loan process, underestimating total costs beyond the down payment, and skipping pre-approval before house hunting. Avoiding these issues generally comes down to planning ahead, keeping finances stable, and asking questions early.
Why do so many first-time buyers run into the same issues?
Buying a first home involves many unfamiliar steps happening at once: comparing loan programs, gathering documents, shopping for a home, and coordinating a closing date. Because most of this is new, it is common for first-time buyers to make avoidable missteps that can slow down or complicate the process. Knowing the common pitfalls ahead of time can help you sidestep them.
What are the most common mistakes?
Shopping for homes before getting pre-approved
Looking at homes before understanding what you can realistically qualify for can lead to disappointment or wasted time. A pre-approval gives you a clearer budget and shows sellers you are a serious buyer.
Making large purchases or opening new credit before closing
Financing a car, furniture, or opening new credit cards during the loan process can change your debt-to-income ratio and credit profile in ways that affect your approval, sometimes even after you've been pre-approved.
Changing jobs during the process
A job change, even a positive one, can require additional documentation or complicate income verification, particularly if it involves a change in pay structure or a gap in employment.
Underestimating total costs
The down payment is often not the only cost. Closing costs, moving expenses, inspections, and initial homeownership costs like furnishing or repairs can add up. Not budgeting for these can create financial stress right after closing.
Not asking about all available loan programs
Some buyers assume they only qualify for one type of loan without exploring options like FHA, VA, USDA, or down payment assistance programs that might better fit their situation.
| Mistake | Why it matters | Better approach |
|---|---|---|
| Skipping pre-approval | Unclear budget, weaker offers | Get pre-approved before touring homes |
| New credit or large purchases | Can affect debt ratios and approval | Hold off on major financial changes until after closing |
| Job changes mid-process | Can require added documentation | Discuss any planned changes with your loan officer first |
| Ignoring closing costs | Cash needed at closing can be higher than expected | Ask for a full cost estimate early |
| Assuming only one program fits | May miss a better-suited option | Ask about all programs you could qualify for |
How can you avoid these mistakes?
- Get pre-approved before you start seriously touring homes.
- Keep your credit and finances stable until after closing.
- Tell your loan officer about any planned job changes as early as possible.
- Ask for a full estimate of closing costs, not just the down payment.
- Ask which loan programs you may qualify for, not just the first one mentioned.
Every borrower's situation is different. Discuss your specific plans and timeline with a loan officer before making financial decisions during the mortgage process.
Common mistakes to avoid
- House hunting before getting pre-approved.
- Opening new credit accounts or financing large purchases before closing.
- Not disclosing a planned job change to your loan officer.
- Forgetting to budget for closing costs and moving expenses.
- Not asking about alternative loan programs that might fit better.
Related loan programs
Frequently Asked Questions
People also ask
Do I need 20% down to buy my first home in Ohio?
No. Many first time buyers use programs that allow lower down payments, such as FHA, conventional loans with as little as 3% down for qualified borrowers, or VA loans for eligible veterans.
Read: First Time Homebuyer Guide for Northeast OhioHow long does it take to get pre-approved?
Timing varies by lender and how quickly documents are provided, but many pre-approvals can be completed within a few business days once paperwork is submitted.
Read: Pre-Approval vs Pre-Qualification: What's the Difference?Are closing costs the same for every loan program?
No. Some programs have specific limits on certain fees or allow different levels of seller contribution, so costs can vary by program even for the same purchase price.
Read: How Much Will My Closing Costs Be?Do I need 20% down to buy a home?
No. Many programs allow down payments well below 20 percent, though mortgage insurance may apply depending on the loan and down payment amount.
Read: How to Save for a Down PaymentGuidance by Manny
Manny Oloyede
Mortgage Broker | NMLS 1824463
Ultimate Mortgage Brokers LLC NMLS #2619461 | Licensed in OH | KY | NC | PA | SC | TN | TX
I have worked in mortgage lending since 2018 out of the Akron / Cuyahoga Falls Branch, helping buyers, homeowners and investors across Northeast Ohio and every state where I am licensed. These guides reflect the questions I answer most often, written the way I would explain them on a call.
Keep reading
First Time Homebuyer Guide for Northeast Ohio
A step-by-step first time homebuyer guide covering budgeting, pre-approval, programs, and the local homebuying process across Northeast Ohio.
Mortgage Pre ApprovalPre-Approval vs Pre-Qualification: What's the Difference?
Understand the difference between mortgage pre-qualification and pre-approval and why a strong pre-approval matters before making an offer.
Mortgage CostsHow Much Will My Closing Costs Be?
Understand the main categories that make up mortgage closing costs, including lender fees, title, taxes, insurance, escrows, and credits.
First Time HomebuyersHow to Save for a Down Payment
Explore practical strategies for saving toward a down payment, how sourcing and seasoning of funds works, and how down payment assistance and gift funds fit in.
Questions about your own numbers?
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