Buying your first home is thrilling — and thrilling situations produce rushed decisions. After guiding thousands of first purchases, we've seen the same five mistakes cost buyers money, sleep, or the house itself. Here's how to sidestep all of them.
1. Shopping before you're pre-approved
Falling in love with a $550,000 home on a $450,000 budget wastes everyone's time — and in hot markets, sellers won't glance at offers without an approval letter. Get verified first; tour second. It takes 24–48 hours and costs nothing.
2. Emptying savings for the down payment
Putting every dollar into the down payment feels virtuous until the water heater fails in month two. Keep 3–6 months of reserves after closing. Remember: gift funds and down-payment assistance can cover the down payment while your savings stay intact.
3. Taking on new debt mid-process
The financed sofa, the new car, the store card for appliances — each one can change your debt-to-income ratio enough to kill an approval days before closing. Make zero major financial moves between application and funding without calling your advisor first.
4. Waiving the inspection to win
In bidding wars, waiving inspection looks bold — until a $30,000 foundation issue surfaces. A better play: a short inspection window with a repair cap. You stay competitive without betting your savings on what's behind the drywall.
5. Focusing only on the rate
A slightly higher rate with thousands less in closing costs often wins over five to seven years. Compare total cost over your realistic horizon — not just the headline number — and ask your advisor to model both.
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Marcus Webb
CEO, Ashgrove Loan Advisors