Mistake #1: Not getting pre-approved before shopping. Pre-approval shows sellers you're serious and tells you exactly what you can afford. Without it, you waste time on homes outside your budget and lose bidding wars to prepared buyers.
Mistake #2: Only applying with one lender. Mortgage rates vary 0.5–1.0% between lenders for the same borrower. On a $300,000 loan, that's $90–$180/month — or $32,000–$65,000 over 30 years. Always get at least 3 Loan Estimates.
Mistake #3: Draining savings for the down payment. If buying leaves you with no emergency fund, one surprise expense puts you in crisis. Keep 3–6 months of expenses in reserve after closing. If that means putting 10% down instead of 20%, the PMI cost is worth the safety net.
Mistake #4: Skipping the home inspection. Saving $400 on an inspection to discover $15,000 in foundation problems after closing is the most expensive 'savings' in real estate. Always inspect, even in competitive markets. If a seller won't allow an inspection, walk away.
Mistake #5: Ignoring closing costs. Budget an additional 2–5% of purchase price beyond your down payment. Too many buyers scramble to cover closing costs at the last minute, sometimes borrowing at high rates or depleting reserves.
Mistake #6: Buying at the top of your budget. Lenders approve you based on debt-to-income ratios that don't account for your actual lifestyle, savings goals, or irregular expenses. Spend 10–15% less than your approved amount.
Mistake #7: Making large purchases before closing. Buying furniture, a car, or anything on credit between pre-approval and closing can tank your debt-to-income ratio and kill your mortgage. Wait until after you have the keys.