10 First-Time Home Buyer Mistakes I Want You to Avoid

Buying your first home is exciting. It can also feel a little overwhelming.

There's financing to figure out, houses to tour, inspections, negotiations, paperwork and plenty of opinions from friends, family and the internet about what you should do.

Here's what I want first-time buyers to know:

You don't have to know everything. That's what your Realtor and lender are there for.

But after helping buyers navigate real estate transactions, there are definitely some mistakes I'd love to help you avoid.

1. Looking at Homes Before You Know What You Can Afford

I understand why people do this. Looking at houses is the fun part!

But falling in love with a $600,000 home before discovering that your comfortable budget is $450,000 isn't much fun at all.

Before we seriously start shopping, I recommend talking with a lender and getting pre-approved.

And here's an important distinction:

What you qualify for and what you're comfortable spending aren't necessarily the same number.

You still need money for groceries, vacations, emergencies, repairs, and life.

I want you to love your home without feeling like your home owns you.

2. Thinking You Need 20% Down

This misconception keeps some potential buyers renting much longer than necessary.

Depending on your qualifications, there are loan programs requiring considerably less than 20% down, and certain eligible buyers may qualify for zero-down financing.

There may also be down-payment or closing-cost assistance programs available.

Don't assume you aren't ready to buy because you haven't saved 20%. Talk with a knowledgeable lender and find out what your actual options are.

You might be closer than you think.

3. Making a Big Purchase Before Closing

Please, please, please don't buy the new car because it will look great parked in front of your new house. At least not yet. And be careful about opening that furniture-store credit card to buy the sectional for the living room you don't technically own yet.

Changes to your debt, credit or financial situation can affect your mortgage approval even after you've been pre-approved.

Before making a significant financial move while you're under contract, call your lender first. The new furniture can wait until we have the keys.

4. Focusing Only on the Purchase Price

A $500,000 house doesn't necessarily have the same monthly cost as another $500,000 house. Property taxes, homeowners insurance, HOA fees, mortgage insurance and other expenses can significantly affect your actual monthly payment.

That's especially important when comparing very different types of properties.

Don't just ask:

"Can I afford the price?"

Ask:

"Am I comfortable with the total monthly cost of owning this particular home?"

That's the number that matters after closing.

5. Using Your Entire Savings for the Purchase

Buying the house is only the beginning of homeownership.

Eventually something will break. It might be a water heater. Or an appliance. Or an HVAC system that somehow knows you just spent all your savings on closing.

I generally don't want to see buyers completely drain their savings just to get into a house. Keeping an emergency cushion can make those first years of homeownership much less stressful.

6. Expecting the Perfect House

This is a big one. You can change: Paint.Flooring.Light fixtures.Cabinets.Countertops.

Landscaping.

You generally can't change the location, lot size, neighborhood or the basic footprint of the property nearly as easily.

I've seen buyers dismiss potentially wonderful homes because of things that could be changed relatively inexpensively.

Try to separate "I don't like this house" from "I don't like what they've done to this house." Those are two very different things. Sometimes the dated house with terrible paint is exactly where the opportunity is.

7. Automatically Dismissing a House That's Been on the Market for a While

This one is especially important. Buyers naturally gravitate toward the newest listings. There's nothing wrong with that, but don't automatically assume something is wrong with a house because it has accumulated days on market. Maybe it started overpriced.

Maybe the photography wasn't great. Maybe a previous contract fell apart for reasons completely unrelated to the house. Or maybe the seller's circumstances have changed.

A listing that's been sitting can sometimes create an opportunity for a buyer who's willing to take another look.

That's when I want to dig into the property's history, comparable sales and seller situation and figure out whether there's an opportunity worth pursuing.

8. Being Afraid to Negotiate

The list price is the beginning of a conversation not necessarily the end of one.

Depending on the property and current market conditions, there may be opportunities to negotiate price, closing-cost assistance, repairs, rate-buydown contributions or other terms. That doesn't mean every seller will say yes. It does mean we shouldn't automatically assume the answer is no. This is one of the reasons having a Realtor who understands the local market matters. A strong offer isn't always simply the highest offer.

Price matters. Terms matter. Timing matters. Strategy matters.

9. Skipping—or Underestimating—the Home Inspection

A house can look beautiful and still have issues you can't see during a showing.

That's what inspections are for. Your home inspector is looking much more closely at the property than we can during a 30-minute tour. An inspection isn't about finding a "perfect" house. Every house has something. It's about understanding what you're buying so you can make an informed decision. And sometimes the inspection actually confirms that the house is in great shape, which is valuable information too.

10. Waiting to Contact a Realtor Until You're "Ready"

This may be the biggest misconception of all.

You don't need to have everything figured out before you call me.

You don't need a pre-approval already in hand.

You don't need to know exactly where you want to live.

And you definitely don't need to apologize because you're "just starting to look."

That's actually a great time for us to talk.

Maybe you're six weeks away from buying.

Maybe you're a year away.

Maybe we discover together that you're not ready yet and create a plan to get you there.

I'd much rather be part of the conversation early enough to help you prepare than meet you after you've already found a house and feel like you have to figure everything out overnight.

One More Thing: Ask Questions

There really aren't stupid questions when you're buying a home, especially your first one.

You're not supposed to know everything about mortgages, inspections, appraisals, contingencies, title work and contracts.

That's our job.

My job isn't simply to unlock doors and show you houses.

It's to help you understand what you're buying, recognize potential opportunities and problems, negotiate intelligently, and feel confident about the decisions you're making along the way. Because buying your first home shouldn't just be about getting to closing.

It should be about making a decision you'll still feel good about after the excitement of closing day is over.

Thinking About Buying Your First Home in Central Virginia?

If homeownership is somewhere in your future, let's start with a conversation.

Whether you're ready today or you're wondering what you need to do over the next year to get ready, I'm happy to help you build a plan.

Kristie Cooke, Realtor®

Real Estate & Investment Specialist

Serving Lake Anna, Louisa, Spotsylvania, Orange, Fredericksburg and surrounding Central Virginia communities

This article is intended for general educational purposes. Financing requirements, loan programs, assistance programs and real estate contract terms vary. Buyers should consult the appropriate licensed mortgage, legal, tax and other professionals regarding their individual circumstances.