First home buyers often make common mistakes when it comes to finding their dream home, but you don’t have to let that derail your journey to homeownership. Some buyers jump into house hunting or make offers without fully understanding their financial situation—only to hit roadblocks later.
Keep reading to learn about the 12 most common mistakes I’ve seen first-time buyers make and how working with a mortgage expert, like me, can help you avoid them.
Not Keeping Track of Your Credit Is a Huge First Home Buyer Mistake
Your credit score plays a huge role in whether you can get a mortgage and the kind of interest rate you’ll pay. If you or your partner have missed payments, high debts, or collections, lenders might not offer you their best terms—or could even deny your application.
Start by checking your credit report with Equifax or TransUnion (both offer free access) and look for errors and dispute any inaccuracies. To improve your score, pay bills on time, reduce debt, and avoid maxing out your credit cards. Even small changes can make a big difference.
Skipping The Financial Prep Work Is A Common Mistake
Before applying for a mortgage, make sure your financial documents are in order. Lenders will ask for things like tax returns, pay stubs, and bank statements. You’ll also need enough saved for a down payment and closing costs. Having this ready ahead of time makes the process much smoother.
Trying To Go It Alone Without Expert Help Is a Big Mistake For A First Home Buyer
Buying a home is complicated, and having the right experts on your side can save you time, stress, and money. A real estate agent can help you find properties and negotiate deals, while a mortgage broker can connect you with lenders offering competitive rates, get you a pre-approval, and offer you invaluable advice.
House Hunting Without a Pre-Approval In Place
Looking at homes before getting pre-approved for a mortgage can set you up for disappointment. Sellers often prioritize buyers who already have a pre-approval because it shows you’re serious and financially ready. Pre-approval also gives you a clear idea of your budget, so you don’t waste time on homes you can’t afford.
Missing Out on First Home Buyer Government Incentives
In Canada, first-time buyers can take advantage of government programs like the First Home Savings Account (FHSA) and the Home Buyers’ Plan. These programs offer tax benefits and other incentives that can make homeownership more affordable. Do some research or talk to a mortgage broker to find out about government incentives and which ones you qualify for.
Not Comparing Mortgage Lenders
Every lender is different, so it pays to shop around. Compare interest rates, fees, and closing costs from multiple lenders to find the best deal. Even a small difference in interest rates can save you thousands over the life of your mortgage. A mortgage broker can help by comparing offers from several lenders for you and can also assist you if your credit is less than perfect.
Not Getting Your Own Realtor To Represent You
Not getting your own realtor to represent you, as a first-time home buyer, is a big mistake. Your agent will build up a relationship with you so they’ll know your wish list, your preapproved budget, and any issues that you should look out for in a potential home. Since the seller pays the commission to both the buyer’s and seller’s agents, it’s “free” to have your own agent represent you.
Too often, first-time home buyers show up to an open house and have the seller’s agent persuade them to have them represent both parties in offer negotiations so they get both commissions. Just remember, this agent has already established a relationship with the seller so they won’t have your best interests in mind.
Letting Your Emotions Guide Your First Home Purchase
Buying a home is emotional, but it’s important to stay practical. Don’t buy a house just because you’ve fallen in love with it—make sure it fits your budget. Similarly, don’t settle for a subpar home out of frustration. Be patient and focus on finding a property that meets your needs and financial situation.
Holding Out for Your Perfect Dream Home
No home is perfect, and waiting for one that checks every box might cause you to miss out on great options. Be realistic about your priorities and focus on homes that meet most of your criteria and your budget.
Spending More Than You Can Afford On Your First Home
Just because a lender approves you for a certain amount doesn’t mean you should spend it all. Consider your monthly budget and make sure you can comfortably afford the mortgage, along with property taxes, insurance, maintenance, and other costs. Leave room for unexpected expenses.
Forgetting About The Cost of Home Maintenance
Owning a home means taking care of repairs and upkeep. Appliances, roofs, and HVAC systems don’t last forever, and older homes may require more frequent (and costly) maintenance. If you’re buying a fixer-upper, be realistic about how much the renovations will cost and plan for those expenses.
Making Big Financial Changes Before Closing on Your First Home
Even after pre-approval, your mortgage isn’t guaranteed until closing. Lenders will check your finances again before finalizing the loan. Avoid opening new credit accounts, taking on additional debt, or making large withdrawals or deposits. Keep your financial situation stable until the deal is done.
Lenders want to see stable income and employment history, typically over two consecutive years. Changing jobs during the mortgage approval process could delay or even derail your approval. If you’re planning a career move, try to wait until after your mortgage is finalized.
Skipping the Home Inspection
A home inspection can reveal costly issues, like plumbing problems or a failing roof. Skipping it might save a few hundred dollars upfront, but it could cost you thousands down the road. Include a home inspection contingency in your offer so you can back out if the seller won’t address major issues.
Are You Thinking Of Buying Your First Home? I Can Offer You Expert Advice and The Best Mortgage Options
Buying your first home is a big deal, but you don’t have to figure it all out on your own. By preparing your finances, working with a mortgage expert, like me, and staying focused on what you need, you can make smarter decisions and enjoy the process.
If you’re ready to get started, reach out to me—I can help you every step of the way on the road to buying your first home. Book a free consultation or give me a call at 705-315-0516 and let’s get you into your first home!