Common pitfalls from earnest money to inspection contingencies — written by an agent who specializes in first-timers.
I've closed dozens of first-time buyers in the last five years. The six mistakes below are the ones I see over and over.
Falling in love with the first house. Tour at least three, even if number one feels right. You'll be a better judge of value after a few comparisons.
Skipping the pre-approval. A pre-qualification letter from your lender's app is not the same as a written pre-approval. In a multi-offer situation, the difference is whether you win or finish second.
Underestimating closing costs. Plan for 2-3% of the purchase price beyond your down payment. That's title insurance, lender fees, prepaid escrows, inspection, and a small reserve.
Waiving the inspection contingency without thinking. There are scenarios where you should — a hot market, a property you've vetted hard, a seller paying for the inspection — but never as a default move.
Going to your DTI ceiling. Just because the lender approves you for $X doesn't mean you should buy at $X. Insurance, taxes, utilities, and maintenance will all squeeze your monthly margin.
Not budgeting for the first year of ownership. Roof, HVAC, water heater, appliances — something will break. Set aside 1% of the purchase price annually as a maintenance reserve.
