1. Not Getting Pre-Approved Before Shopping
This is the number one mistake I see. Buyers start touring homes, fall in love with a property, and then scramble to figure out financing. By the time they get their pre-approval, the house is under contract with someone else.
A pre-approval tells you exactly what you can afford, what your monthly payment will look like, and shows sellers you're serious. In a competitive market, it's the difference between getting your offer accepted and getting passed over.
2. Only Talking to One Lender
If you only get a quote from one bank, you have no idea if it's a good deal. Rates, fees, and loan terms vary significantly from lender to lender. Working with a broker means I'm shopping dozens of lenders for you, but even if you don't use a broker, get at least three quotes before committing.
3. Ignoring Closing Costs
Your down payment isn't the only cash you need at closing. Closing costs typically run 2-4% of the purchase price and cover things like title insurance, appraisal, origination fees, prepaid taxes, and insurance. On a $300,000 home, that's $6,000-$12,000 on top of your down payment.
Plan for these upfront. Seller concessions, lender credits, and down payment assistance programs can help offset them, but only if you know about them ahead of time.
4. Making Big Financial Changes Before Closing
Do not open new credit cards, finance furniture, change jobs, or make large deposits without talking to your loan officer first. Lenders pull your credit and verify your employment right before closing. Any changes can delay or kill your loan.
5. Skipping the Home Inspection
In competitive markets, some buyers waive the home inspection to make their offer more attractive. This is almost never worth the risk. A $400-$500 inspection can reveal tens of thousands of dollars in hidden problems, foundation issues, roof damage, electrical problems, plumbing concerns.
6. Buying at the Top of Your Budget
Just because you qualify for $400,000 doesn't mean you should spend $400,000. Your pre-approval amount is a ceiling, not a target. Leave room in your budget for maintenance, emergencies, and actually enjoying your life. I always encourage clients to work backwards from a monthly payment they're comfortable with.
7. Not Asking Enough Questions
There are no dumb questions in this process. If you don't understand something, an APR, an escrow account, a rate lock, PMI, ask. A good loan officer will explain everything until it clicks. That's literally my job, and I'd rather spend an extra hour on the phone with you than have you sign something you don't fully understand.