Buying your first home is a major milestone—and often, a dream come true. But with that excitement can come confusion, stress, and avoidable first-time home buyer mistakes. The process involves far more than just browsing listings and making an offer. If you’re not careful, small missteps can lead to long-term regret.
Here are six of the most common home-buying mistakes to avoid:
1. Not Getting Pre-Approved Early
One of the biggest home-buying mistakes first-time buyers make is jumping into house hunting without securing a mortgage pre-approval. Pre-approval helps you understand exactly how much you can afford and shows sellers that you’re a serious buyer.
Without it, you risk falling in love with a home that’s outside your budget—or losing out in a competitive offer situation. Start by shopping around for lenders and getting pre-approved before you tour your first property.
2. Underestimating the Total Cost of Homeownership
Many first-time home buyers focus only on the down payment and monthly mortgage—but owning a home comes with additional expenses. These can include:
- Property taxes
- Homeowners insurance
- Private mortgage insurance (PMI)
- HOA fees
- Utility bills
- Routine maintenance and emergency repairs
Failing to plan for these ongoing costs can leave you financially stretched. Build a realistic budget that includes all aspects of homeownership—not just the loan.
3. Skipping the Home Inspection
Whether it’s a new build or a charming older home, never skip the inspection. A professional home inspection can uncover hidden problems such as foundation issues, roof damage, plumbing leaks, or electrical hazards.
Waiving the inspection might seem like a way to win in a bidding war, but it could cost you thousands down the road. Always insist on a thorough inspection and use the findings to negotiate repairs or walk away if needed.
4. Letting Emotions Drive the Decision
Buying a home is emotional, but decisions should be grounded in facts—not feelings. Don’t rush into a purchase just because you’re afraid of missing out or you’ve “fallen in love” with the kitchen.
Instead, first-time home buyers: Does the home meet your practical needs? Is it in a location that supports your lifestyle? Is the price point sustainable? Keep a level head and lean on trusted advice to stay objective.
5. Draining All Savings for the Down Payment
It might be tempting to put every penny you have toward the down payment to avoid mortgage insurance or reduce your monthly payment. But leaving yourself with no emergency savings is risky.
Unexpected expenses—like a job loss, car repair, or home emergency—can quickly put you in a tough spot. Aim to keep at least a few months’ worth of expenses in reserves after closing.
6. Failing to Compare Loan Options
Not all mortgages are created equal—but many first-time home buyers go with the first loan they’re offered. Failing to shop around or compare different types of loans can lead to higher interest rates, less favorable terms, or unexpected costs down the line.
Take time to explore your options, including:
- Fixed-rate vs. adjustable-rate mortgages
- FHA, VA, or USDA loans if you qualify
- Loan terms (15-year vs. 30-year)
- Differences in interest rates, closing costs, and fees across lenders
Be sure to consider credit unions, which often offer lower rates and more personalized service compared to traditional banks. Even a small difference in interest rate can add up to tens of thousands of dollars over the life of a loan. Get quotes from multiple sources and ask questions to ensure you’re making the most informed choice.
Get Started with a Mortgage You Can Trust
At The People’s Federal Credit Union, we’re here to help first-time home buyers make confident, informed decisions. Our mortgage loan options are designed with your future in mind—offering competitive rates, personalized service, and support every step of the way.
If you live, work, or worship in Canyon, Childress, Hereford, parts of Amarillo, or Deaf Smith County, you’re eligible for membership. Let us help you find the right mortgage and make your dream of homeownership a reality.