— We are committed to quality content. A real person from THE DURHAM LIFE wrote this article.

Buying your first home is such an exciting milestone! But let’s be honest—it’s also a brand-new process with lots to learn. It’s totally normal to feel a little overwhelmed or to make a few mistakes along the way. To help make your journey as smooth as possible, here are some common first-time homebuyer mistakes and how you can avoid them.

Not Knowing Your Credit Score
Before you head to a broker or lender, knowing your credit score is key! Your credit score directly affects the mortgage amount you’ll qualify for, which determines what type of home you can afford.
If you skip this step, you might be caught off guard when the numbers don’t match your expectations. For example, if your credit score is lower than you thought, it could impact your borrowing power—and your property plans.

Pro Tip: Check your credit score early! If it’s not where you’d like it to be, you’ll have time to improve it before starting the home-buying process. A better credit score can open up more mortgage options and help you snag a better deal.

Having a Small Down Payment
While it’s possible to buy a home with a down payment as low as 5%, having a larger down payment (closer to 20%) can make a huge difference.
Why? A small down payment can limit your mortgage options and reduce the number of homes you qualify for. You might find yourself stuck with fewer choices—or even a mortgage that doesn’t suit your financial goals.

Pro Tip: Save up for a larger down payment, even if it means waiting a little longer. This extra patience can pay off big time by giving you more flexibility and peace of mind.

Using All Your Savings
It’s tempting to pour all your savings into your down payment and closing costs but hold up! You’ll still need a financial cushion for ongoing mortgage payments, unexpected repairs, and other expenses.
Using every penny could leave you struggling to make payments or cover surprise costs—yikes!

Pro Tip: Keep a healthy emergency fund in place. It might take extra time to save, but it’s worth it to avoid financial stress later on.

Not Calculating the Costs
Mortgages come with more than just the monthly payment. You’ll also encounter costs like broker fees, appraisal fees, insurance, and lender fees. These can add up quickly!
If you don’t calculate all the costs upfront, you could find yourself in a sticky situation—especially if you’ve already paid non-refundable fees.

Pro Tip: Work with your broker to get a full picture of all the costs involved. With a clear estimate, you’ll know exactly what to budget for and can plan accordingly.

Mistakes Happen—And That’s Okay!
It’s normal to feel a bit lost when navigating the home-buying process for the first time. But by learning from common mistakes, you can set yourself up for success.
If you have questions about first-time home-buying mistakes or need guidance, I’m here to help! Let’s make your dream of homeownership a reality.

Author

Recent Post

Sherry Corbitt is an experienced Mortgage Broker with 20 years as an entrepreneur. Known for her positive energy and client-first approach, Sherry helps clients secure the best mortgages tailored to their lifestyles. As a Certified Divorce Financial Analyst, she supports individuals during life’s toughest transitions. Sherry is also the founder of Zenith Coaching Group, where she mentors mortgage agents to excel through innovative business practices. A dynamic speaker, she’s traveled across Canada sharing marketing insights and mortgage expertise. Sherry is a bestselling author, active community member, and supports causes like the Durham Humane Society. Outside of work, she enjoys leading a Girl Guide troop and traveling with her Disney-obsessed family.