15 First-Time Home Buyer Mistakes (and How to Avoid Them)
Almost every expensive first-time mistake is a timing mistake. Here is the order things should happen in.
Buying your first home in Georgia is a sequence: money, then house, then contract, then closing. Most of the mistakes below come from doing one of those steps out of order — or skipping one because it looked optional.
1. Shopping before you are pre-approved
Without a real pre-approval you do not know your budget, and sellers will not take your offer seriously. Get pre-approved first; see pre-approval vs prequalification.
2. Budgeting for the down payment and forgetting closing costs
Georgia buyers pay lender fees, title insurance, attorney fees, prepaid interest, escrow deposits and the intangible recording tax — $1.50 per $500 of the loan. Our closing costs guide lists them all.
3. Spending to the top of the pre-approval
A lender approves the most you can borrow, not the most you should. Leave room for the costs a mortgage payment does not include: maintenance, utilities, and repairs.
4. Opening new credit before closing
A new car loan or store card can change your debt-to-income ratio and your score. Lenders often re-check credit right before closing. Don't open, close or max out anything until you have keys.
5. Moving money around without a paper trail
Large unexplained deposits need documentation. Keep funds where they are, and if family is giving you money, ask your lender how to document the gift.
6. Skipping the home inspection
In Georgia, the due diligence period is your protection: inspect then, and you can walk away for any reason. Skip it and you lose your best chance to learn what you are buying.
7. Letting the due diligence period expire without a decision
Once due diligence ends, you generally can't terminate just because you changed your mind, and your earnest money is at risk. Calendar the end date the day you go under contract.
8. Only looking at the house, not the lot and location
You can renovate a kitchen; you can't move a house out of a flood zone or away from a highway. Check flood maps, drainage, commute and school zones before you offer.
9. Ignoring HOA rules and finances
Fees, special assessments and rules on rentals, fences or parking all bind you after closing. Read the covenants during due diligence.
10. Not comparing lenders
Rates and fees differ between lenders on the same day for the same borrower. Comparing loan estimates is one of the easiest ways to save. Veribas Financing lets you compare quotes from several lenders.
11. Missing down payment assistance you qualify for
Georgia has a statewide program through the Department of Community Affairs, plus local and lender programs. Ask early — some must be arranged before you sign a contract. See down payment assistance in Georgia.
12. Assuming the seller's tax bill will be yours
The seller's exemptions may not carry over, and a sale can trigger a reassessment. Estimate taxes on the price you pay, not on last year's bill.
13. Wiring closing funds from an emailed instruction
Wire fraud targets buyers right before closing. Always confirm wiring instructions by calling the closing attorney at a phone number you found yourself, never one from the email.
14. Forgetting the homestead exemption
Georgia homeowners apply with the county tax assessor, by April 1 in most counties, to lower the next tax bill. You must own and live in the home on January 1. Missing it costs a full year's savings.
15. Going it alone to save money
A licensed agent writes the contract, negotiates repairs and keeps the deadlines. Ask what representation costs and who pays — see who pays the buyer's agent.
The right order
- Check your credit and savings.
- Get pre-approved and compare lenders.
- Pick an agent and agree on terms in writing.
- Tour, then offer.
- Inspect and negotiate inside due diligence.
- Appraisal, final loan approval, walkthrough, closing.
- File for homestead by April 1.
Common questions
What is the biggest first-time buyer mistake?
Not leaving room in the budget. A home at the top of your approval leaves nothing for repairs, furniture or a bad month.
Do first-time buyers need 20% down?
No. Many loan programs allow much less, with mortgage insurance as the trade-off. See conventional loan down payments.
Who counts as a first-time buyer?
Many programs define it as someone who has not owned a home in the past three years, but each program sets its own definition — check with the program or your lender.
How much cash should I have at closing?
Your down payment plus closing costs and prepaids, minus any seller credits. Your lender's Closing Disclosure gives the exact figure at least three business days before closing.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.