Common Mistakes First-Time Homebuyers Make — And How to Avoid Them

Common Mistakes First-Time Homebuyers Make — And How to Avoid Them 2025

When it comes to first times, buying a home for the first time can be one of the most exciting, intimidating and overwhelming experiences for many buyers.

Most first-time home buyers are not equipped to go through the process alone, however, and there are common mistakes that any new homeowner can fall victim to. Understanding and avoiding the typical pitfalls associated with purchasing a new home is important. Some of the more common difficulties first-time buyers experience include:

• Not inspecting a new property

• Only shopping for resale homes

• Research into the neighborhood and school district

• Proper budgeting and planning

• Stress and anxiety of the process

Investing in an Inspection Before Closing

When Muna Mohamud, a nurse from Minnesota, bought her first home, she searched for the right home for about six months. Overwhelmed and exhausted by the process, she finally said yes to a four-bedroom house that was built in the 1970s.

“One mistake that I made — and that I’m paying for still — is that we didn’t get a good inspector,” she explains. “The house is old, and I’ve already put so much money into repairs. Every other couple months there is something to fix.”

When you purchase a newly built home, you are starting from scratch, so you don’t have to worry about a major fix for years or that a seller is hoping the inspector will miss major problems. New homes are inspected several times throughout the construction process, giving homebuyers peace of mind.

However, if you still would like an inspection of a newly constructed home, speak to your builder about special requirements for the inspection. This article has more information about what to expect from a final home inspection.

New Construction vs Resale Homes

Mohamud also regrets that she didn’t give the thought of buying a newly built home a chance, because she felt like she wouldn’t be able to afford it.

While newly built homes can cost more than a used home, you’ll save time and money in the long run by not having to worry about costly repairs because everything is new and under a builder’s warranty.

Considering the Quality of the Neighborhood and Schools

For buyers that have children or plan to have children in the future, looking at the quality of the schools in their neighborhood is important. Mohamud assumed that since the home she bought was in a nice neighborhood, the schools were good too — but that wasn’t the case for the mother of five.

“It’s essential to assess the neighborhood before purchasing a home,” says Sage Singleton, a home maintenance expert for SafeWise in Salt Lake City. “If you have children, doing your research on the school district, its teachers, rankings and the route to school is important.”

Singleton says first-time buyers must understand that while you can update your home, you can’t change the neighborhood and all that comes with it.

This guide to assessing school districts in your neighborhood can help first-timers learn how to find the right school for their children when building or moving into a new home.

Staying Within the Budget

Looking at expensive homes is sometimes treated as a fun activity that people do on the weekends and purchasing one can be something to aspire to when a buyer reaches a certain level of financial stability.

When you are a first-time buyer, however, not properly budgeting before going house shopping can turn you off to the houses within your budget and can make the process less than thrilling.

“The biggest mistake I have constantly seen is when buyers go look at a home that is obviously over their budget,” says Frank Casanova, a residential broker in Northern California. “They love it. And then when they begin looking for homes within their realistic price range, they are continually disappointed with what they see. It becomes a depressing venture for them and a difficult emotion to overcome.”

Opting Out of the Homebuying Process Altogether

Feeling intimidated by the thought of going to a bank to ask for a home loan when you’re a first-time buyer is understandable. A lot of first timers think that they won’t qualify, and this often leads to people never considering the possibility of homeownership in the first place.

Kathy Cummings, a homeownership solutions and education executive at Bank of America, says she sees this mistake all the time.

“Many new homebuyers self-select out of homeownership by assuming they won’t qualify for a mortgage or that they need to put down 20 percent. Others simply don’t know where to start,” says Cummings.

Some banks, such as Bank of America, offer first-time buyer programs like their Affordable Loan Solution mortgage, which is a loan that provides some prospective homebuyers access to a responsible lending product at affordable entry prices.

In addition to banks offering first-time homebuyer mortgages, some states also offer programs that are designed to help buyers who need a little help in realizing their dream of owning a home. Many buyers don’t think they qualify for these programs or simply don’t even know they exist in the first place.

“I frequently represent first-time homebuyers as my demographic begins to settle down,” says Michael Kelczewski, a Millennial Realtor with Brandywine Fine Properties Sotheby’s International Realty, licensed in Pennsylvania and Delaware. “Many states provide programs subsidizing a home purchase. Certain grants or tax credits may also be present.”

These are a few of the hurdles that first-time buyers can experience when looking for their first home. Working closely with experienced builders and experts can help to reduce these challenges. For more tips, visit newhomesource.com/learn.