There's nothing quite like walking into a house and thinking: this could be home. But between mortgage rates, down payments, and bidding wars, the journey from ready to buy to closing day can feel complicated, especially if it’s your first time.  

Fortunately, most first-time homebuyer mistakes are entirely avoidable. At TFNB Your Bank for Life, we've been helping Central Texas families buy homes for more than 135 years. Here are the seven most common mistakes we see, and what you can do instead.

Mistake #1: Falling in Love With Homes Before Getting Pre-Approved

Here's a hard truth nobody tells you early enough: falling in love with a home you can't afford is one of the most common first-time buyer mistakes there is. Pre-approval fixes that. It gives you a real number based on your actual income, debt, and credit so you have a game plan before you set foot in a single open house. Sellers take it seriously too. In today's market, most won't even look at an offer without one.

Start now: Talk to a TFNB mortgage banker before you tour a single home to get pre-approved.

Mistake #2: Underestimating the True Cost of Homeownership

That monthly payment is just the beginning. Closing costs typically run 2–5% of the loan amount. On a $450,000 home, that's up to $22,500 due at signing. Then add property taxes, homeowner's insurance, maintenance (budget 1–2% of your home's value per year), and any HOA dues. Buyers who plan only for the monthly payment are often caught off guard within the first year.

Start now: Estimate your true cost of home ownership budget before making an offer.

Mistake #3: Draining Your Savings to Cover the Down Payment

A bigger down payment lowers your monthly mortgage but emptying your savings to get there leaves you short when something breaks (and trust us, something always breaks). 

Here's something a lot of first-time buyers don't know: you don't necessarily need 20% down. FHA loans allow as little as 3.5% down for buyers with a credit score of 580 or higher, and some conventional programs, like Fannie Mae's HomeReady and Freddie Mac's Home Possible, which start at 3%. You may pay Private Mortgage Insurance until you hit 20% equity, but that's often a worthwhile trade-off for keeping your savings intact.

Start now: Ask a TFNB banker about low-down-payment options that keep your savings healthy.

Mistake #4: Making Big Financial Moves During the Mortgage Process

From application to closing, lenders will continue reviewing your financial profile. New debt, large purchases, opening a credit card, or changing jobs can trigger a re-review, or worse, cause your loan to fall through. The rule: no new accounts, no big withdrawals, and definitely no co-signing for anyone. 

Start now: Ask us for a do's and don'ts checklist at the start of the lending process.

Mistake #5: Waiving the Home Inspection to Win an Offer

We understand the competitive pressure to land the home you fell in love with if there are multiple offers on the table. But skipping a $300–$500 inspection to just hurry up the process is a costly mistake. That extra step can uncover problems worth tens of thousands: foundation issues, leaky plumbing, faulty wiring, roof damage, termite damage and more. If you want to strengthen your offer without waiving protection, talk to your agent about shortening the inspection window or limiting repair requests instead.

Start now: Budget for the inspection as a non-negotiable line item.

Mistake #6: Only Shopping With One Lender

Rates and fees vary more than most buyers realize. Getting just one additional quote could save you thousands over the life of your loan. When comparing offers, check the APR, origination fees, and whether the rate is locked in for the life of the loan. When you shop a local lender like TFNB, you also get something the big banks rarely offer: direct access to the people making the decisions.

Start now: Compare 2–3 lenders so you can see how the financials all stack up.

Mistake #7: Leaving First-Time Buyer Programs on the Table

Texas offers several programs specifically for first-time buyers through Texas State Affordable Housing Corporation (TSAHC ) and The Texas Department of Housing and Community Affairs (TDHCA), including down payment assistance grants of up to 5% that don't have to be repaid. Eligibility varies but there's only one way to find out if you qualify: apply.

Start now: Check out TSAHC and TDHCA for more information.

You Don't Have to Figure This Out Alone

Our mortgage team isn't a call center somewhere across the country; we’re right here in your neighborhood. We know the Central Texas market, and we genuinely care about helping you land in the right home with a payment that works for your lifestyle.

Ready to take the first step? We'd love to help. Reach out today or visit one of our bankers in person.

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