---
title: 5 Mistakes First-time Homebuyers Can Avoid
description: Want to get into the home of your dreams? Here are 5 common mistakes many first-time homebuyers make and how they can be avoided.
---

[Hanscom FCU MoneyWisdom Blog ](https://go.hfcu.org/blog)

# [5 Mistakes First-time Homebuyers Can Avoid](https://go.hfcu.org/blog/5-mistakes-first-time-homebuyers-can-avoid)

 Written by [MoneyWisdom Newsletter](https://go.hfcu.org/blog/author/moneywisdom-newsletter) | Jan 16, 2021 1:30:00 PM

Buying your [first home](https://go.hfcu.org/first-time-homebuyer) is an exciting time that’s often fraught with emotions — both positive and negative. You can successfully navigate the homebuying process by knowing what pitfalls lie ahead.

Here are some common mistakes many first-time homebuyers make and tips to avoid them.

1. **Not having a clear understanding of how much house you can afford**. There’s no point in looking at homes that are out of your price range. Use a [mortgage affordability calculator](https://www.hfcu.org/calculators/mortgage-calculator.html) to help you figure out a monthly payment that fits within your budget. Some experts suggest aiming for a home that costs less than you think you can afford. This gives your budget some wiggle room so you won’t feel financially stressed by life’s unexpected twists and turns.
2. **Not monitoring your credit report. **Mortgage lenders will be examining your credit reports to determine how much to lend you and at what interest rate. Mistakes could cost you — with higher interest rates. Request a copy of your credit report from each of the three main consumer credit reporting companies, Equifax, Experian and TransUnion at [AnnualCreditReport.com](https://www.annualcreditreport.com/yourRights.action). If you find errors, you can dispute them. You can also get a free [Credit Report and Score Review](https://www.hfcu.org/credit-report-and-score.html) with one of our credit experts.* Give us a call at 800-656-4328 and ask for our Member Services department.
3. **Not looking into special programs for first-time buyers. **If you don’t have the funds for a 20% down payment, look into mortgages backed by the federal government that require as little as 3% down. VA mortgages are sponsored by the Department of Veterans Affairs and may require no down payment if you’re eligible. Consider 30-, 20- and 15-year fixed rate mortgages, as well as [adjustable-rate mortgages](https://go.hfcu.org/blog/four-things-every-homebuyer-needs-to-know-about-adjustable-rate-mortgages-arms), or ARMs, which offer a low interest rate in the early years of the loan. Hanscom FCU has a special first-time homebuyer’s program that can help you buy a home with no money down. Learn more [here](https://go.hfcu.org/blog/introducing-hanscom-fcus-no-money-down-mortgage).
4. **Not getting preapproved for a mortgage. **Being [prequalified](https://go.hfcu.org/blog/bid/172300/the-mortgage-application-process-get-pre-approved-before-you-look) for a mortgage means a lender confirms in writing how much you can borrow and at what interest rate. It sends a strong message to sellers that you’re serious about buying a home, which can give you an advantage over other buyers who might not be prequalified.
5. **Not setting aside savings to cover closing costs. **Expect to pay anywhere from 2% to 5% of your loan amount on closing costs. Shop around to save money on your homeowner’s insurance, home inspection and title search. You may be able to negotiate a lower commission with your real estate agent and have the seller pay a portion of your closing costs.

The mortgage specialists at Hanscom FCU can help you buy a home you love. We’ll work with you to determine a loan amount that fits your budget and help you find the right financing so you can shop for your first home with confidence. To learn more, stop by a branch location, visit [www.hfcu.org/mortgage](http://www.hfcu.org/mortgage) or give us a call at **800-656-4328.**

 

Our First-Time Homebuyer's Handbook can help you navigate the process of finding and financing your first home. It's free and you can download it [here](https://go.hfcu.org/first-time-homebuyer).

*** ***

*Others are reading:*

- [Introducing Hanscom FCU's No-Money-Down Mortgage](https://go.hfcu.org/blog/introducing-hanscom-fcus-no-money-down-mortgage)
- [3 New Rules for Refinancing Your Mortgage](https://go.hfcu.org/blog/3-new-rules-for-refinancing-your-mortgage)
- [Your First Step in Buying a Home: Pre-qualify for a Mortgage](https://go.hfcu.org/blog/bid/172300/the-mortgage-application-process-get-pre-approved-before-you-look)
- [What You Need to Know About Buying a Condo](https://go.hfcu.org/blog/what-you-need-to-know-about-buying-a-condo)
- [6 Mistakes First-time Homebuyers Make](https://go.hfcu.org/blog/6-mistakes-first-time-homebuyers-make)

* Note that Hanscom FCU's Credit Score and Report Review requires a hard pull on your credit, which will temporarily reduce your credit score.

[View full post](https://go.hfcu.org/blog/5-mistakes-first-time-homebuyers-can-avoid)

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