{"id":2073,"date":"2024-11-20T22:28:46","date_gmt":"2024-11-20T22:28:46","guid":{"rendered":"https:\/\/lrgrealty.com\/first-time-homebuyer-mistakes-to-avoid\/"},"modified":"2026-06-26T11:46:16","modified_gmt":"2026-06-26T16:46:16","slug":"first-time-homebuyer-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/first-time-homebuyer-mistakes-to-avoid\/","title":{"rendered":"8 First-Time Homebuyer Mistakes to Avoid"},"content":{"rendered":"<div class=\"rl-page rl-page-lrg\">\n<div class=\"rl-wrap\">\n<header class=\"rl-hero\">\n<a class=\"rl-cta-primary\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=first-time-homebuyer-mistakes-to-avoid\">Connect with LRG \u2192<\/a><br \/>\n<\/header>\n<nav aria-label=\"Jump to section\" class=\"rl-jump-nav\">\n<a href=\"#buying-more-house-than-you-can-afford\">Buying More House Than You Can Afford<\/a><br \/>\n<a href=\"#the-most-common-first-time-buyer-mistakes\">The Most Common First-Time Buyer Mistakes<\/a><br \/>\n<a href=\"#what-should-you-expect-during-the-process\">What Should You Expect During the Process?<\/a><br \/>\n<a href=\"#are-you-making-these-costly-errors\">Are You Making These Costly Errors?<\/a><br \/>\n<a href=\"#faqs\">FAQs<\/a><br \/>\n<\/nav>\n<p>Most first-time buyers don&#8217;t lose money picking the wrong house. They lose it by skipping steps before the search even starts. Six recurring mistakes account for the bulk of blown deals and post-closing regret, from shopping without mortgage preapproval to draining every dollar of savings on the <a href=\"\/lrg-blog\/how-to-save-for-a-down-payment\/\">down payment<\/a>. The common thread is that each one hits hardest after you&#8217;re already emotionally committed.<\/p>\n<div class=\"rl-quick-grid\">\n<article class=\"rl-quick-card\">\n<h3>What Counts as a First-Time Homebuyer Mistake?<\/h3>\n<ul>\n<li><strong>Core definition:<\/strong> First-time homebuyer mistakes are avoidable financial and procedural errors during the purchase process, from skipping preapproval to draining savings for the down payment.<\/li>\n<li><strong>Key distinction:<\/strong> Most costly mistakes happen before you tour a single home. Skipping lender comparison, ignoring closing costs, and budgeting only for the mortgage payment set up long-term strain.<\/li>\n<li><strong>Common misconception:<\/strong> You don&#8217;t need 20% down. FHA loans start at 3.5%, conventional options at 3%, and VA or USDA loans require zero down for eligible buyers.<\/li>\n<li><strong>Bottom line:<\/strong> Closing costs average 2% to 5% of the purchase price, meaning $8,000 to $20,000 on a $400,000 home. Buyers who budget only for down payment and mortgage consistently fall short.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>Key Facts About First-Time Homebuyer Mistakes<\/h3>\n<ul>\n<li><strong>Biggest mistake:<\/strong> Shopping for homes before getting mortgage preapproval wastes time on properties outside your budget and weakens your negotiating position with sellers.<\/li>\n<li><strong>Down payment myth:<\/strong> Most first-time buyers qualify for 3% to 3.5% down through FHA or conventional loans, not the 20% many assume is required.<\/li>\n<li><strong>Inspection risk:<\/strong> Skipping the home inspection to speed up closing can hide $10,000 or more in structural, plumbing, or electrical repairs that surface within the first year.<\/li>\n<li><strong>Bottom line:<\/strong> Homeowners spend roughly 1% to 2% of their home&#8217;s value on annual maintenance alone, adding $4,000 to $8,000 per year on a $400,000 property beyond the mortgage.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>Why First-Time Homebuyer Mistakes Are So Costly<\/h3>\n<ul>\n<li><strong>Financial impact:<\/strong> Buyers who skip preapproval regularly bid on homes $50,000 or more beyond what they qualify for, risking lost earnest money and wasted inspections.<\/li>\n<li><strong>Risk factor:<\/strong> Draining your savings for the down payment leaves zero buffer for the $5,000 to $15,000 in repairs most homes need within two years.<\/li>\n<li><strong>Opportunity:<\/strong> Comparing rates from at least three lenders typically saves $1,500 or more over the life of the mortgage versus accepting the first quote.<\/li>\n<li><strong>Main takeaway:<\/strong> A single rate difference of 0.25% on a $400,000 loan adds roughly $1,000 per year in interest, compounding every year you hold the mortgage.<\/li>\n<\/ul>\n<\/article>\n<article class=\"rl-quick-card\">\n<h3>First-Time Buyer Misconceptions<\/h3>\n<ul>\n<li><strong>Myth vs reality:<\/strong> Most first-time buyers put down 6% to 8%, not 20%. FHA loans start at 3.5% down, and some conventional programs allow 3%.<\/li>\n<li><strong>Common mistake:<\/strong> Touring homes before getting preapproved leads to emotional bidding on properties outside your actual budget, wasting weeks and weakening your negotiating position.<\/li>\n<li><strong>Overlooked cost:<\/strong> Buyers budget for the mortgage payment but miss property taxes, homeowners insurance, and PMI, which together can add $400 to $800 per month.<\/li>\n<li><strong>Worth noting:<\/strong> Buyers who drain savings for a larger down payment often can&#8217;t cover a $5,000 to $10,000 emergency repair in year one, forcing them into credit card debt at 22% interest.<\/li>\n<\/ul>\n<\/article>\n<\/div>\n<div class=\"rl-atf-faqhead\"><span class=\"rl-kicker\">Asked First<\/span>Top questions before you dig in<\/div>\n<details>\n<summary>What are the most common first-time homebuyer mistakes to avoid?<\/summary>\n<p>The biggest mistakes include house hunting before getting mortgage preapproval, draining your savings on the down payment, skipping comparison shopping between lenders, and underestimating ongoing costs like property taxes, insurance, and maintenance. Get preapproved first, keep cash reserves, and budget for the full monthly cost of ownership.<\/p>\n<\/details>\n<details>\n<summary>What are the biggest first time homebuyer mistakes to avoid?<\/summary>\n<p>The most common mistakes are house hunting before getting mortgage preapproval, draining your savings on the down payment, skipping comparison shopping between lenders, and underestimating ongoing ownership costs like property taxes, insurance, and maintenance. Get preapproved first, then set a realistic budget that covers the full monthly payment.<\/p>\n<\/details>\n<section class=\"rl-section\">\n<h2 id=\"buying-more-house-than-you-can-afford\">Buying More House Than You Can Afford<\/h2>\n<p>Getting approved for a mortgage doesn&#8217;t mean you should spend every dollar of it. Lenders base preapproval on your debt-to-income ratio, but they don&#8217;t factor in groceries, childcare, car maintenance, or the weekend habits you&#8217;re not willing to give up. Your preapproval letter is a ceiling, not a target, and treating it like a shopping budget is how first-time buyers end up house poor.<\/p>\n<p>Most financial advisors suggest keeping total housing costs below 28% of gross monthly income. But that guideline often misses real-world expenses. A $350,000 home at a 7% rate with $4,200 in annual <a href=\"https:\/\/lrgrealty.com\/lrg-blog\/2026-texas-property-taxes-homestead\/\">property taxes<\/a> and $1,800 in homeowners insurance costs roughly $2,750 per month before any maintenance. Add 1% of the home&#8217;s value per year for upkeep and actual monthly housing costs land closer to $3,040. That gap between the &#8220;affordable&#8221; payment and the real cost catches firs<\/p>\n<li>Track your actual monthly spending for three months before setting a home price range, not just your listed debts on the loan application<\/li>\n<p>e setting a home price range, not just your listed debts on the loan application<\/p>\n<li>Include property taxes, homeowners insurance, HOA dues, and PMI when comparing homes at different price points<\/li>\n<li>Set your maximum purchase price 10-15% below your preapproval amount to leave room for rate fluctuations and closing cost surprises<\/li>\n<li>Budget 1% of the purchase price annually for maintenance and repairs starting from day one<\/li>\n<li>Keep at least three months of mortgage payments in reserve after closing, separate from your general emergency fund<\/li>\n<\/section>\n<\/div>\n<p>A buyer preapproved for $400,000 who purchases at $340,000 keeps roughly $400 per month in breathing room. That margin is what separates a comfortable homeowner from someone scrambling when the water heater fails, property taxes get reassessed upward, or work slows down for a quarter. Buy below your limit and you&#8217;ll actually enjoy the house instead of stressing over every unexpected bill.<\/p>\n<section class=\"rl-section\">\n<h2 id=\"the-most-common-first-time-buyer-mistakes\">The Most Common First-Time Buyer Mistakes<\/h2>\n<p>First-time buyers repeat the same handful of mistakes in nearly every market, and most happen well before you ever tour a property. Skipping mortgage preapproval, underestimating closing costs, and emptying your savings account for the down payment show up on virtually every buyer regret survey. Overspending is one category of error. These process-level mistakes are another, and they can be just as expensive.<\/p>\n<p>A 2024 National Association of Realtors survey found that 30% of recent first-time buyers wished they had better understood the homebuying process before starting. That gap between expectations and reality is where these mistakes live. Buyers assume the down payment is the only major upfront cost, apply with a single lender and accept whatever rate comes back, skip the inspection to compete in a bidding war, and wonder six months later why they feel financially squeezed. Each one of those shortcuts has a real dollar cost attached to it.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Shopping without preapproval. Sellers ignore offers that don&#8217;t include a preapproval letter, and you risk falling for a house outside your actual price range.<\/li>\n<li>Getting only one mortgage quote. Rate and fee differences between lenders can total $20,000 or more over 30 years. Compare at least three before you commit.<\/li>\n<li>Draining savings for the down payment. You still need 2-5% of the purchase price for closing costs, plus reserves for moving expenses and post-move repairs.<\/li>\n<li>Waiving the home inspection. A $400-$600 inspection can uncover tens of thousands in hidden structural or mechanical problems before you&#8217;re locked in.<\/li>\n<li>Making large credit purchases before closing. Financing a car or furniture changes your debt-to-income ratio, and lenders re-pull credit before closing day.<\/li>\n<\/ul>\n<\/div>\n<p>Work through this list before you <a href=\"\/lrg-blog\/dec-26-start-touring-homes-san-antonio\/\">start touring<\/a> properties. Get preapproved, compare at least three lender quotes, and confirm that your savings cover more than just the down payment. Buyers who handle these basics before their first showing negotiate from a stronger position and avoid the expensive scramble of patching problems mid-contract. These mistakes show up on every regret survey for a reason, but none of them are inevitable with basic preparation.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"what-should-you-expect-during-the-process\">What Should You Expect During the Process?<\/h2>\n<p>The typical home purchase takes 30 to 60 days from accepted offer to closing, but first-time buyers regularly underestimate how many steps happen in that window. Each phase has its own timeline, costs, and potential delays. Knowing what comes next at each stage keeps you from making reactive decisions that cost you money or kill the deal entirely.<\/p>\n<p>Most surprises hit during the inspection and appraisal phases. A <a href=\"\/lrg-blog\/home-inspection-in-austin-tx-2025-guide\/\">home inspection<\/a> might reveal $8,000 in roof repairs you didn&#8217;t budget for. The appraisal could come in $15,000 below your offer price, forcing a renegotiation. Title searches occasionally uncover liens or boundary disputes that add weeks to closing. None of these are rare, and each one requires a decision with real financial consequences.<\/p>\n<table>\n<thead>\n<tr>\n<th>Phase<\/th>\n<th>Typical Timeline<\/th>\n<th>Common Surprise<\/th>\n<th>What It Costs<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Preapproval<\/td>\n<td>1-3 days<\/td>\n<td>Credit issues surface<\/td>\n<td>$0 (free from most lenders)<\/td>\n<\/tr>\n<tr>\n<td>House hunting<\/td>\n<td>2-12 weeks<\/td>\n<td>Inventory is lower than expected<\/td>\n<td>$0 (but time pressure builds)<\/td>\n<\/tr>\n<tr>\n<td>Offer and negotiation<\/td>\n<td>1-5 days<\/td>\n<td>Multiple offer situations<\/td>\n<td>Earnest money deposit (1-3% of price)<\/td>\n<\/tr>\n<tr>\n<td>Home inspection<\/td>\n<td>7-10 days after offer<\/td>\n<td>Major repair findings<\/td>\n<td>$300-$500 out of pocket<\/td>\n<\/tr>\n<tr>\n<td>Appraisal<\/td>\n<td>2-3 weeks after offer<\/td>\n<td>Value comes in below offer price<\/td>\n<td>$400-$700 (rolled into closing costs)<\/td>\n<\/tr>\n<tr>\n<td>Underwriting<\/td>\n<td>2-4 weeks<\/td>\n<td>Lender requests additional documents<\/td>\n<td>$0 (but delays closing)<\/td>\n<\/tr>\n<tr>\n<td>Closing<\/td>\n<td>Day 30-60<\/td>\n<td>Last-minute fee adjustments<\/td>\n<td>2-5% of purchase price total<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Build a buffer of at least two weeks beyond your expected closing date before scheduling movers or ending a lease. First-time buyers who plan around the best-case timeline end up paying overlap rent, storage fees, or rush charges when a single delay pushes closing back. Flexibility in your schedule is free insurance against the most predictable problem in real estate.<\/p>\n<\/section>\n<div class=\"rl-cta-mid\"><a class=\"rl-cta-pill\" href=\"\/lrg-blog\/connect-with-lrg\/?ref=first-time-homebuyer-mistakes-to-avoid\">Connect with LRG \u2192<\/a><\/div>\n<section class=\"rl-section\">\n<h2 id=\"are-you-making-these-costly-errors\">Are You Making These Costly Errors?<\/h2>\n<p>Most first-time buyer mistakes that cost real money happen between the accepted offer and the closing table. You already know to get preapproved and set a realistic budget. The errors below happen after those steps, and they catch buyers off guard because they seem minor at the time. Each one can add thousands in unexpected costs or put your entire deal at risk.<\/p>\n<p>Lenders pull your credit again before closing and verify your bank statements line by line. A single large purchase or unexplained deposit can delay your closing by weeks or collapse the deal entirely. Agents see these errors tank transactions that were otherwise on track, usually because the buyer didn&#8217;t realize how closely lenders monitor finances throughout the entire process. The common thread is always the same: it seemed harmless until the underwriter flagged it.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Financing furniture or appliances before closing. A new credit inquiry or added debt changes your debt-to-income ratio, and your lender can revoke approval even days before signing.<\/li>\n<li>Skipping the home inspection to &#8220;win&#8221; the offer. Waiving a $400 to $600 inspection to compete with other buyers can leave you with $15,000 or more in hidden foundation, roof, or HVAC repairs.<\/li>\n<li>Underestimating closing costs. Budget 2% to 5% of the purchase price on top of your down payment. On a $300,000 home, that&#8217;s $6,000 to $15,000 you need liquid at the table.<\/li>\n<li>Draining your savings for the down payment. Putting every dollar into your down payment leaves zero cushion for immediate repairs, property taxes, or the first emergency that hits after move-in.<\/li>\n<li>Switching jobs or income sources mid-process. Lenders verify employment right before closing. A job change, even to a higher salary, can restart the underwriting clock or disqualify you entirely.<\/li>\n<\/ul>\n<\/div>\n<p>Run the numbers before you make any financial move between preapproval and closing day. If you&#8217;re buying a $300,000 home with 5% down, you need roughly $15,000 for the down payment plus another $6,000 to $15,000 for closing costs, and at least three months of mortgage payments in reserve. That total is closer to $30,000 to $40,000 in available cash, not just the down payment number.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"where-first-time-buyers-should-start\">Where First-Time Buyers Should Start<\/h2>\n<p>Most first-time buyers jump straight to browsing listings, but that puts the cart before the horse. The correct starting sequence locks down your finances, strengthens your offer position, and prevents the emotional overspending covered in earlier sections. Following these steps in order saves weeks of wasted effort and shields you from the most expensive rookie mistakes.<\/p>\n<p>Your <a href=\"https:\/\/lrgrealty.com\/lrg-blog\/how-to-better-your-credit-score-to-receive-low-mortgage-rates\/\">credit score<\/a> determines your interest rate, and even a 20-point improvement can save thousands over the life of your loan. Pull your reports at least 90 days before you plan to shop. Dispute errors, pay revolving balances below 30% utilization, and avoid opening new accounts. Once your credit is positioned, talk to at least three lenders before settling on one.<\/p>\n<table>\n<thead>\n<tr>\n<th>Step<\/th>\n<th>Action<\/th>\n<th>Timeline<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>Pull credit reports from all three bureaus and dispute errors<\/td>\n<td>90+ days before shopping<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Pay credit card balances below 30% utilization<\/td>\n<td>60\u201390 days before shopping<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Save for down payment, closing costs, and a 3-month cash reserve<\/td>\n<td>Ongoing, confirm totals before step 4<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Get preapproved with at least 3 lenders and compare loan estimates<\/td>\n<td>30\u201345 days before shopping<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>Calculate your real monthly cost (principal, taxes, insurance, HOA, maintenance)<\/td>\n<td>Same time as preapproval<\/td>\n<\/tr>\n<tr>\n<td>6<\/td>\n<td>Interview and hire a buyer&#8217;s agent<\/td>\n<td>After preapproval is in hand<\/td>\n<\/tr>\n<tr>\n<td>7<\/td>\n<td>Start touring homes within your preapproved range only<\/td>\n<td>After agent is hired<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A buyer who follows this sequence walks into their first showing with a preapproval letter, a realistic price ceiling, and an agent who already knows what they need. That buyer writes stronger offers and closes faster than someone who toured 30 homes before ever calling a lender. The order matters more than the speed.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"hidden-costs-and-realistic-timelines\">Hidden Costs and Realistic Timelines<\/h2>\n<p>First-time buyers routinely budget for the down payment and monthly mortgage but miss thousands in costs that hit before and after closing. <a href=\"\/lrg-blog\/home-inspections-in-the-home-buying-process\/\">Home inspections<\/a>, appraisals, title insurance, property taxes escrowed upfront, and homeowners insurance premiums add up fast. On a $300,000 purchase, closing costs alone typically run $9,000 to $15,000, or 3% to 5% of the sale price.<\/p>\n<p>Beyond closing day, ownership costs keep climbing in ways renters never had to plan for. HOA dues, lawn maintenance, appliance replacements, and property tax reassessments all land in your first year. Buyers who drain their savings to cover the down payment often end up financing emergency repairs on credit cards at 20%+ interest, which defeats the purpose of building equity in the first place.<\/p>\n<div class=\"bullet-section-gray\">\n<ul>\n<li>Home inspection: $350 to $600 depending on square footage, required before you finalize the purchase agreement<\/li>\n<li>Appraisal fee: $400 to $700, ordered by your lender and due whether or not the deal closes<\/li>\n<li>Title insurance and escrow fees: $1,000 to $3,000, often split between buyer and seller but negotiable<\/li>\n<li>Property tax escrow: lenders typically collect 2 to 6 months of property taxes upfront at closing<\/li>\n<li>Maintenance reserve: plan for 1% to 2% of the home&#8217;s value annually, so $3,000 to $6,000 a year on a $300,000 home<\/li>\n<li>HOA dues: $200 to $400 per month in many suburban developments, and they increase annually<\/li>\n<\/ul>\n<\/div>\n<p>Build a post-closing cash reserve of at least three months of housing payments before you start house hunting. If that number feels uncomfortable, you either need a less expensive home or more time to save. Running the real numbers now prevents the financial stress that pushes first-time buyers into regret within the first year of ownership.<\/p>\n<\/section>\n<section class=\"rl-section\">\n<h2 id=\"the-bottom-line\">The Bottom Line<\/h2>\n<p>The most expensive first-time buyer mistakes happen before you ever walk through a front door. Spending your full preapproval amount without accounting for real monthly costs, skipping the preapproval step entirely, and underestimating closing costs all set you up to lose money or lose the deal. The correct sequence starts with locking down your finances and getting preapproved, not browsing listings.<\/p>\n<p>What matters most is understanding that the 30 to 60 days between an accepted offer and closing carry their own costs, deadlines, and decision points. Buyers who map out each phase, budget beyond the purchase price, and resist the urge to max out their borrowing power close with fewer surprises and more money in the bank.<\/p>\n<\/section>\n<section class=\"rl-faq\">\n<h2 id=\"frequently-asked-questions\">Frequently Asked Questions<\/h2>\n<details>\n<summary>What is the best order of steps for a first-time home buyer?<\/summary>\n<p>Start with your finances: check your credit score, calculate your total monthly budget (not just the mortgage payment), and get pre-approved by at least two or three lenders. Pre-approval sets a real price ceiling and shows sellers you&#8217;re serious. After pre-approval, hire a buyer&#8217;s agent, then start touring homes within your approved range. Once you&#8217;re under contract, schedule an inspection, lock your rate, and avoid opening new credit accounts or making large purchases. Following this order prevents the most expensive mistakes, like falling in love with a home you can&#8217;t afford or losing a deal because you weren&#8217;t pre-approved.<\/p>\n<\/details>\n<details>\n<summary>Do first-time home buyers need a 20% down payment?<\/summary>\n<p>No. The 20% rule is one of the most persistent myths in real estate. FHA loans require as little as 3.5% down with a 580+ credit score. Conventional loans through Fannie Mae&#8217;s HomeReady or Freddie Mac&#8217;s Home Possible programs start at 3% down. USDA loans and VA Loans offer 0% down for eligible buyers. Putting less than 20% down means you&#8217;ll pay private mortgage insurance (PMI), which typically costs 0.5% to 1.5% of the loan amount per year. But waiting years to save 20% often costs more in rising home prices and rent payments than PMI would.<\/p>\n<\/details>\n<details>\n<summary>Is there a $7,500 government grant for first-time home buyers?<\/summary>\n<p>The $7,500 figure comes from a proposed federal tax credit that was discussed in Congress but has not been enacted into law as of 2026. No active federal program provides a flat $7,500 grant to all first-time buyers. However, real down payment assistance does exist at the state and local level. Many state housing finance agencies offer grants or forgivable loans ranging from $5,000 to $25,000, depending on income limits and location. HUD maintains a directory of local programs at hud.gov. Check your state&#8217;s housing authority website for current program details and application deadlines.<\/p>\n<\/details>\n<details>\n<summary>What are the pros and cons of first-time homebuyer loan programs?<\/summary>\n<p>The main advantage is lower barriers to entry. FHA, USDA, and state-sponsored programs <a href=\"\/lrg-blog\/sellers-accept-lower-offers-christmas-week\/\">accept lower<\/a> credit scores, smaller down payments, and higher debt-to-income ratios than conventional loans. Many include down payment assistance or reduced mortgage insurance. The trade-offs are real, though. FHA loans carry mortgage insurance for the life of the loan (unless you refinance), not just until you hit 20% equity. Some state programs restrict the home&#8217;s purchase price or your income. USDA loans limit you to eligible rural and suburban areas. Compare the total cost over 5 to 7 years, not just the monthly payment, before choosing a program.<\/p>\n<\/details>\n<details>\n<summary>What should you avoid doing after getting mortgage pre-approval?<\/summary>\n<p>Your lender will re-check your credit and finances before closing, so any changes between pre-approval and closing can kill the deal. Do not open new credit cards, finance furniture or a car, or make large cash deposits that can&#8217;t be documented with a clear paper trail. Avoid switching jobs or going from salaried to self-employed income. Don&#8217;t co-sign anyone else&#8217;s loan. Even paying off a large debt can temporarily lower your score. Keep your financial profile as stable as possible from the day you get pre-approved until the day you close. Lenders want to see the same borrower at the closing table.<\/p>\n<\/details>\n<details>\n<summary>How much savings should a first-time buyer have beyond the down payment?<\/summary>\n<p>Plan for closing costs of 2% to 5% of the purchase price, which covers lender fees, title insurance, appraisal, and prepaid taxes. On a $300,000 home, that&#8217;s $6,000 to $15,000 on top of your down payment. You also need cash reserves. Most lenders want to see at least two months of mortgage payments in savings after closing. Beyond lender requirements, keep an emergency fund for immediate repairs. Homes don&#8217;t come with warranties on everything, and issues like a failed water heater or HVAC repair can cost $2,000 to $5,000. Draining your savings to maximize your down payment is one of the most common buyer mistakes.<\/p>\n<\/details>\n<details>\n<summary>What does a first-time homeowner need to budget for after closing?<\/summary>\n<p>Monthly ownership costs go well beyond principal and interest. Property taxes and homeowner&#8217;s insurance are typically escrowed into your mortgage payment, but budget separately for maintenance (1% to 2% of the home&#8217;s value per year), HOA dues if applicable, utilities (often higher than renting), lawn care, and pest control. Set aside a dedicated home repair fund from day one. First-year costs tend to run higher because previous owners often defer maintenance before selling. Get a home warranty for the first year if the seller didn&#8217;t include one, as it covers major systems and appliances for $400 to $600 annually.<\/p>\n<\/details>\n<\/section>\n<footer class=\"rl-resources\">\n<h2 id=\"resources-used\">Resources Used<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.sdhousing.org\/news-blog\/common-mistakes-people-make-when-buying-a-house-for-the-first-time\" rel=\"noopener noreferrer\" target=\"_blank\">Sdhousing.org \u2014 Common Mistakes When Buying a House for the First Time<\/a><\/li>\n<li><a href=\"https:\/\/www.bankrate.com\/mortgages\/first-time-homebuyer-mistakes\/\" rel=\"noopener noreferrer\" target=\"_blank\">Bankrate \u2014 10 First-Time Homebuyer Mistakes To Avoid &#8211; Bankrate<\/a><\/li>\n<li><a href=\"https:\/\/www.rocketmortgage.com\/learn\/first-time-home-buyer-mistakes\" rel=\"noopener noreferrer\" target=\"_blank\">Rocket Mortgage \u2014 13 common first-time home buyer mistakes &#8211; Rocket Mortgage<\/a><\/li>\n<li><a href=\"https:\/\/tpfcu.com\/blog\/mistakes-first-time-homebuyers-avoid\/\" rel=\"noopener noreferrer\" target=\"_blank\">The People&#8217;s Federal Credit Union \u2014 6 Common First-Time Home Buyer Mistakes<\/a><\/li>\n<li><a href=\"https:\/\/www.cnb.com\/personal-banking\/insights\/homebuying-mistakes.html\" rel=\"noopener noreferrer\" target=\"_blank\">City National Bank \u2014 14 First-Time Homebuyer Mistakes to Avoid | City National Bank<\/a><\/li>\n<li><a href=\"https:\/\/www.pennymac.com\/blog\/mistakes-first-time-homebuyers-make\" rel=\"noopener noreferrer\" target=\"_blank\">Pennymac \u2014 First-Time Homebuyer Mistakes &amp; How to Avoid Them | Pennymac<\/a><\/li>\n<li><a href=\"https:\/\/www.piscataqua.com\/10-first-time-home-buyer-mistakes-and-how-to-avoid-them\/\" rel=\"noopener noreferrer\" target=\"_blank\">Piscataqua Savings Bank \u2014 10 First-Time Home Buyer Mistakes and How to Avoid Them<\/a><\/li>\n<li><a href=\"https:\/\/www.sofi.com\/learn\/content\/home-buying-red-flags\/\" rel=\"noopener noreferrer\" target=\"_blank\">SoFi \u2014 What Is the Biggest Red Flag in a Home Inspection? | SoFi<\/a>\n<\/li>\n<\/ul>\n<\/footer>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Connect with LRG \u2192 Buying More House Than You Can Afford The Most Common First-Time Buyer Mistakes What Should You Expect During the Process? Are You Making These Costly Errors? FAQs Most first-time buyers don&#8217;t lose money picking the wrong house. They lose it by skipping steps before the search even starts. Six recurring mistakes [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":2074,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,64],"tags":[],"class_list":["post-2073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying","category-lrg-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>8 First-Time Homebuyer Mistakes to Avoid - LRG Realty Blog<\/title>\n<meta name=\"description\" content=\"Avoid first-time homebuyer mistakes with clear tips on preapproval, down payments, closing costs, and budgeting before you buy a home\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lrgrealty.com\/lrg-blog\/first-time-homebuyer-mistakes-to-avoid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"8 First-Time Homebuyer Mistakes to Avoid - 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