Five Things First-Time Home Buyers Always Get Wrong (and How to Avoid Them)

Buying your first home is a huge milestone, and it comes with a mix of excitement, questions, and “okay… where do I even start?” moments. The good news is that every first-time buyer feels this way at some point or another. With the right information and a little preparation, the process becomes a lot less intimidating and a lot more empowering.

Here are five common mistakes first-time buyers often run into, plus simple ways to stay ahead of them so you can shop the market with confidence.

Focusing on the house instead of the monthly payment

It’s easy to get swept up in list prices when browsing online. You see a home at $500,000 and immediately compare it to another at the same price point. However, what many buyers don’t realize is how different the monthly payment can be depending on interest rates, taxes, insurance, HOA fees, and loan programs. Two similarly priced homes can vary by hundreds of dollars a month once everything is factored in.

How to avoid it:
When you start your search, think in monthly payments rather than purchase price. Ask your lender to run payment scenarios for the ranges you’re considering so you can clearly see how each home impacts your budget. This approach keeps the process grounded in what actually matters: how comfortably the home fits into your lifestyle and long-term financial goals.

Touring homes before getting pre-approved

Most buyers feel tempted to browse “just to see what’s out there,” but without pre-approval, you’re operating without an accurate sense of what you can afford and what sellers will take seriously. Pre-approval is about clarity. It gives you an accurate price range, helps you understand what your financial picture looks like to a lender, and ensures you’re ready when you find a home you love.

How to avoid it:
Connect with a lender early - well before you plan to start touring. The pre-approval process is usually quick and gives you insight into your loan options, estimated payments, and closing costs. Plus, when it’s time to submit an offer, sellers see you as a prepared and trustworthy buyer.

Underestimating closing costs and cash needed upfront

Most first-time buyers understand the down payment, but many are surprised by the additional expenses that show up before closing day. Closing costs typically run between 2–5% of the purchase price and include things like appraisal fees, lender fees, taxes, and title services. Then you have inspections, potential repairs, movers, deposits - things that aren’t always top of mind when you first start imagining your home.

How to avoid it:
As soon as you connect with a lender or agent, ask for a detailed estimate of everything due at closing. From there, build a small cushion into your savings so you’re not scrambling at the last minute. Knowing what to expect helps you feel prepared and in control from day one.

Searching for the “perfect” house

It’s completely normal to imagine your ideal home: the perfect neighborhood, perfect layout, perfect yard, perfect budget. In reality, every home, no matter the price point, comes with a few trade-offs. The key is figuring out which things really matter to your lifestyle versus which things are easy to update over time. Many buyers overlook great homes because they’re waiting for something flawless, and that can lead to missed opportunities.

How to avoid it:
Before you start looking, make a simple list of “must-haves,” “nice-to-haves,” and “dealbreakers.” Keep it flexible - your preferences might evolve once you start touring. Try to focus on things that can’t easily be changed: the location, the lot, and the layout. Everything else, like paint colors, lighting, hardware, even flooring, can be updated gradually and often affordably. The “perfect” home is usually the one that supports your life, not the one that checks every single aesthetic box on day one.

Forgetting about ongoing costs beyond the purchase price

When you're budgeting for a home, it’s easy to think only in terms of the purchase and the mortgage. That said, homeownership comes with ongoing costs: maintenance, repairs, utilities, seasonal upkeep, and unexpected fixes. Many first-time buyers feel surprised by these expenses only because they didn’t know to expect them.

How to avoid it:
A simple rule of thumb is to set aside 1–3% of your home's value each year for maintenance and potential repairs. You can build this gradually - monthly, quarterly, or whenever it works for you. Creating a home maintenance checklist also helps spread things out so tasks feel manageable, not daunting. When you plan ahead, homeownership feels far more rewarding and much less stressful.

Buying your first home is a big deal, and it should feel exciting, hopeful, and full of possibility. No one gets everything perfect the first time, and you don’t need to. The best thing you can do is surround yourself with the right information and the right support so you feel confident and prepared at every step.

If you want help with the buying process, understanding the market, or getting connected with trusted lenders and resources, our team is here to guide you.