Quick answer: The most common first-time buyer mistakes are shopping before you're pre-approved, talking to only one lender, maxing out your budget, opening new credit before closing, skipping the inspection, focusing on cosmetics over the big systems, and waiting for a "perfect" time. Each one is easy to avoid with a plan.
I've helped a lot of first-time buyers, and the same few mistakes come up again and again. Here's what they are and what to do instead.
1. Shopping before you're pre-approved
Falling for a home you can't make a strong offer on is the worst feeling. Instead: get pre-approved first, so you know your budget and can move fast when the right home pops up.
2. Talking to only one lender
Rates, fees and programs vary from lender to lender. Instead: compare Loan Estimates from 2 or 3 lenders. Ask each one about first-time buyer programs.
3. Maxing out your budget
Your pre-approval is the most you can borrow, not what you should spend. Instead: choose a monthly payment that leaves room for savings, travel and life.
4. Opening new credit before closing
A new car loan, a new credit card or financing furniture can change your loan approval. Instead: keep your finances steady from pre-approval to closing. Ask your lender before any big purchase or job change.
5. Skipping (or skimming) the inspection
In a competitive market, it's tempting to waive the inspection. Instead: keep an inspection contingency when you can, attend the inspection, and ask questions. I'll help you sort out what's normal and what's worth negotiating.
6. Falling for paint and missing the big stuff
Paint, carpet and light fixtures are easy to change. A roof, furnace or wet basement is not. Instead: ask about the age of the roof, furnace, water heater and windows, and look for signs of water in the basement. That matters a lot in Wisconsin.
7. Waiting for the "perfect" time
Nobody can time the market perfectly. Instead: focus on what you can comfortably afford today and what another year of rent really costs you. If you're not ready yet, that's okay. Many of my clients start talking with me 6 to 12 months before they buy.
Bonus: forgetting about closing costs
Your down payment isn't the only cash you need. Read how much money you need to buy a house in Wisconsin so there are no surprises.
FAQs
What is the biggest mistake first-time home buyers make?
Shopping for homes before getting pre-approved. It leads to heartbreak when you find the right home and can't make a strong offer.
Should I open a credit card before buying a house?
No. Avoid opening new credit, financing big purchases or changing jobs between pre-approval and closing unless you check with your lender first.
Is a home inspection required in Wisconsin?
It isn't required, but it's strongly recommended. An inspection contingency lets you learn about the home and negotiate before you're committed.
Want a plan that avoids all 7? See my first-time buyer roadmap or send me a message.
About the author
Kaeley Simek, REALTOR® helps buyers and sellers across Milwaukee, Waukesha, Washington, Kenosha and Walworth Counties. She's a Real Trends Verified top 1.5% agent nationally. In her words: “I take great pride in doing everything I can to give you the ultimate buying or selling experience. My top values are communication, honesty, kindness and having the heart of a teacher: guiding you and explaining your options so you can make great decisions. I’m extremely experienced with unique and tough challenges, and I love to negotiate.” Questions? Call or text 414-501-7880 or send her a message. She replies within 2 hours (before 8 pm).
This article is general information, not legal, tax or lending advice. Loan programs and rules change, so confirm details with your lender and agent.
