Buying your first home feels exciting, right? But also, it can be a bit tricky if you don’t know what you’re walking into. Many new buyers end up making common mistakes like not checking their credit, skipping mortgage pre-approval, or even spending more than they actually can afford. These small errors can turn a dream home into stress.
So, let’s go over what mistakes happen the most often, what they mean in real life, and how you can avoid them. The tips below are based on trusted information from the Consumer Financial Protection Bureau (CFPB), U.S. Department of Housing and Urban Development (HUD), and Fannie Mae — so you can be sure everything here is accurate and reliable.
1. Not Checking Your Credit Early
Your credit score decides what kind of mortgage deal you’ll get. But many people only check it after they start looking for houses, and by that time, fixing it becomes hard.
What to do:
Check your credit score at least half a year before you plan to buy. Visit AnnualCreditReport.com for a free report. If there are mistakes, fix them. Try to lower high balances too. Even a few extra points on your score can make a big difference in your loan rate.
(Source: CFPB – “What to know about credit before buying a home”)
2. Skipping Mortgage Pre-Approval
This one’s a big one. Many first-time buyers confuse pre-qualification with pre-approval. But they’re not the same. Pre-qualification is just a basic check, while pre-approval means your lender actually reviewed your income, debt, and credit.
How to avoid this mistake:
Get pre-approved before you start hunting houses. It helps you know exactly what price range you can afford and also makes your offer look stronger to sellers.
(Source: Fannie Mae – “Steps to Getting a Mortgage”)
3. Forgetting About Hidden Costs
The monthly mortgage isn’t everything. There are property taxes, insurance, repairs, and even maintenance that add up fast. Many people realize this only after buying the house.
How to stay ready:
Include all these costs in your home budget. You can use CFPB’s Mortgage Calculator to see what your full payment might look like each month.
4. Spending All Your Savings on Down Payment
It’s natural to think a bigger down payment is always better. But using all your savings can leave you broke right after buying the house. What if something breaks, or you lose your job for a bit?
Better idea:
Keep at least 3–6 months of expenses as backup. You can still buy a home with help from FHA, VA, or local down payment programs that don’t need a huge upfront amount.
(Source: HUD – “Buying a Home: Resources for First-Time Buyers”)
5. Getting Too Emotional
It’s easy to fall for a home that looks perfect. Maybe it’s slightly out of budget, but you convince yourself it’s worth it. That’s how buyers end up in financial trouble later.
Be smart instead:
Decide your budget first, and then stick to it no matter what. The right house will show up eventually. Buying your first home should make life peaceful, not stressful.
6. Skipping the Home Inspection
A house might look great from outside, but you never know what’s hiding behind the walls. Many people skip inspections to save time or money. Later, they regret it when major repairs appear.
Do this:
Always hire a professional home inspector before you finalize the deal. The small fee is nothing compared to the cost of fixing hidden problems later.
7. Not Comparing Lenders
Different lenders offer different rates, and not comparing them can cost you thousands over time.
What you can do:
Get quotes from at least three lenders. Don’t just check the monthly payment, look at the APR (annual percentage rate). It shows the true cost. The CFPB has a Loan Comparison Tool that makes this easy.
Buying your first home is a big milestone. If you take time to learn and avoid these common mistakes, the process becomes smoother and much less stressful. The key is planning, checking your credit early, getting pre-approved, budgeting properly, and always doing your research. For a deeper breakdown of what you need before you start, you can also read our Guide to Obtaining Your Homebuyer Education Certificate, which helps you understand the essential steps in preparing for homeownership.
All this advice comes from reliable sources like HUD, CFPB, and Fannie Mae, so you know it’s backed by experts, not opinions.