10 Mistakes First-Time Homebuyers Should Avoid

Published On: February 27, 2025|Categories: Real Estate|

Buying a home for the first time is exciting, but it’s also easy to make avoidable mistakes that can cost you time, money, and peace of mind. Whether you’re buying in Jasper, Evansville, or somewhere else in Dubois County, knowing what not to do is just as important as knowing what to do.

This guide explains the following:

Skipping mortgage preapproval
Buying more house than you can afford
Ignoring additional costs of ownership
Rushing the home search process
Letting emotions drive your decisions
Not working with a REALTOR®
Waiving important contingencies
Skipping the home inspection
Making large financial changes before closing
Not understanding your mortgage terms

Here’s a closer look at each.

Skipping Mortgage Preapproval

Some buyers start touring homes without getting preapproved for a mortgage. That can lead to heartbreak when you fall in love with a home you can’t afford—or worse, miss out on a great one while waiting for financing.

Getting preapproved shows sellers you’re serious and gives you a clear price range. You’ll also avoid delays when you’re ready to make an offer. To start the process, check your credit, gather financial documents, and talk to a trusted lender or check resources at IN.gov.

Buying More House Than You Can Afford

It’s easy to stretch your budget when you find a dream home, but doing so can put you in a tough spot down the road. Remember: just because you qualify for a certain loan amount doesn’t mean you should spend it all.

Make sure your monthly mortgage payment fits comfortably within your budget, and leave room for savings, maintenance, and unexpected expenses.

Ignoring Additional Costs Of Ownership

Your mortgage isn’t the only monthly cost. You’ll also need to budget for:

Property taxes
Homeowners insurance
Utilities
Repairs and maintenance
HOA fees (if applicable)

Talk to your REALTOR about what’s typical for your area—especially if you’re buying in Huntingburg, Ferdinand, or other towns with older homes or unique property taxes.

Rushing The Home Search Process

Some buyers get impatient and put in an offer on the first home that meets their basic needs. But buying a home is a big commitment—you should feel confident about your decision.

Take your time touring multiple homes, asking questions, and comparing features. Your REALTOR can help narrow down your options without rushing you.

Letting Emotions Drive Your Decisions

It’s normal to get excited about a home, but don’t let emotions cloud your judgment. Falling in love with a property can lead to ignoring red flags, overpaying, or skipping essential steps.

Stay grounded. Focus on what really matters: condition, location, layout, and whether the home fits your long-term needs.

Not Working With A REALTOR

You might be tempted to go it alone, but buying a home is complex. A REALTOR brings experience, negotiation skills, and local knowledge that can save you time and money.

Plus, as a buyer, you usually don’t pay their commission—it’s typically paid by the seller. A trusted local real estate agent will represent your best interests and help you avoid costly mistakes.

Waiving Important Contingencies

In competitive markets, some buyers waive inspection or financing contingencies to make their offer more appealing. While this can work in certain situations, it’s risky—especially for first-time buyers.

Contingencies give you a legal way out if something unexpected comes up. Don’t waive them unless your REALTOR advises it and you understand the risks.

Skipping The Home Inspection

Even if the house looks great on the surface, you still need a professional inspection. Inspectors can uncover hidden issues like foundation problems, roof damage, mold, or faulty electrical systems.

If problems are found, you can negotiate repairs, ask for a price reduction, or even walk away—depending on the terms of your offer.

Making Large Financial Changes Before Closing

Once your offer is accepted, don’t make any big financial moves until after you close. That includes:

Opening new credit cards
Financing a car
Making large purchases
Changing jobs

These actions can affect your credit score or debt-to-income ratio, which could derail your mortgage approval. Your lender will likely run a final credit check before closing, so play it safe.

Not Understanding Your Mortgage Terms

Before you sign anything, make sure you understand your loan terms, including:

Interest rate and type (fixed or adjustable)
Loan length (15 vs. 30 years)
Monthly payment amount
Escrow details
Prepayment penalties

Your lender and REALTOR can explain the details, but it’s your responsibility to know what you’re signing up for. Don’t be afraid to ask questions if something doesn’t make sense.

FAQ About First-Time Homebuyer Mistakes

Check out these commonly asked questions about first-time homebuyer mistakes. If you don’t see your question here, please call our office and we’ll find you the answers you need.

What’s The Most Common First-Time Buyer Mistake?

Skipping mortgage preapproval is one of the most common mistakes. It can delay your offer or cause you to look at homes outside your budget.

Can I Buy A Home With Student Loans?

Yes. Lenders will look at your overall debt-to-income ratio. If your income is steady and your credit is good, student loans won’t automatically disqualify you.

Should I Buy A Home That Needs Repairs?

It depends on your budget and experience. Fixer-uppers can be great investments, but they come with risks. Talk to your REALTOR about what’s realistic for you.

How Much Money Should I Have Saved Before Buying?

Ideally, you should have enough for a down payment, closing costs, and at least a few months of emergency savings. Your lender can help estimate what you’ll need.

Do I Need A 20% Down Payment?

No. Many loans allow for lower down payments—some as low as 3%. Your REALTOR or lender can explain your options and help you choose the right loan.

Buying your first home is a huge step—but with the right knowledge and support, you can avoid common pitfalls. A local real estate agent who knows Dubois County and nearby areas like Newburgh and Santa Claus can guide you through every step of the process, from getting preapproved to picking the right home.

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Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties, as well as all the surrounding communities. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty, our site is directly connected to our local MLS. We update it with new homes every hour.

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