Can I still buy a car while my loan is in process?

It is generally best to avoid large purchases or new financing until after closing, since it can affect your debt-to-income ratio and approval.

What if I get a job offer during the process?

Tell your loan officer as soon as possible so they can advise on what documentation may be needed and how it could affect your timeline.

How much should I budget beyond the down payment?

Closing costs, moving expenses, and initial homeownership costs can add up, so ask your lender for a full cost estimate rather than budgeting for the down payment alone.

Is it too late to explore other loan programs if I already started?

It is generally best to ask early, but discussing your options with your loan officer at any point in the process is worthwhile if you're unsure you're in the best-fitting program.

Do I need perfect credit to buy my first home?

No. Many programs are designed to work with a range of credit profiles, though your options and terms can vary based on your credit history.

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.

Get Pre Approved Get pre-approved the right way

Related loan programs

FHA Loans

Government insured financing with flexible credit and down payment guidelines.

VA Loans

A benefit earned through service, with no required down payment for eligible buyers.

Conventional Loans

The most widely used financing for primary homes, second homes and rentals.

Frequently Asked Questions

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