The 3 Biggest Mistakes We Made Buying Our House
WHAT YOU’LL LEARN IN THIS EPISODE
Stacie and Hoang go behind the scenes of their real homebuying experience. From mistakes made before they even started looking to decisions they wish they’d approached differently once under contract, this episode is packed with authentic lessons you can apply directly to your own journey.
Mistake #1: Not Getting Pre-Approved Early Enough
One of the most common – and costly – errors first-time buyers make is falling in love with homes before knowing exactly what they can afford. Without a pre-approval in hand, you’re shopping in the dark. Stacie and Hoang learned this firsthand when they found a home they loved only to realize their financing wasn’t locked in. Getting pre-approved first sets your real budget, strengthens your offer, and saves you from heartbreak.
A pre-approval isn’t just a number – it’s a signal to sellers that you’re serious. In competitive markets, sellers often won’t even consider an offer without one. Start the pre-approval process 3 to 6 months before you plan to buy so you have time to address any credit issues that come up.
Mistake #2: Underestimating the True Cost of Homeownership
The mortgage payment is just one piece of the puzzle. Stacie and Hoang were surprised by the ongoing costs that weren’t in their original budget: property taxes, homeowner’s insurance, HOA fees, utilities in a larger space, and the inevitable maintenance expenses that come with any home. These costs can add hundreds of dollars a month to your actual housing payment.
A good rule of thumb is to budget 1-2% of your home’s purchase price annually for maintenance and repairs. If you buy a $350,000 home, that’s $3,500 to $7,000 per year set aside for the unexpected. Factor this in before you finalize your target price range.
Mistake #3: Letting Emotions Drive Financial Decisions
It’s hard not to fall in love with a home – that’s human nature. But when emotions take the wheel, it’s easy to stretch your budget, overlook red flags, or skip important steps like a thorough home inspection. Stacie and Hoang admit they let excitement override logic at moments during their process, which cost them time and money.
The fix is defining your non-negotiables before you start touring. Know exactly what you must have, what you’d like to have, and what you can live without. When you tour a home, check it against your list rather than your feelings.
KEY TAKEAWAYS
- Get pre-approved before you fall in love with a home, not after
- Factor in property taxes, insurance, HOA fees, and maintenance when budgeting
- Set your non-negotiables in writing before you start touring
- Don’t skip the home inspection, even in a competitive market
- Stress-test your monthly payment across different interest rate scenarios
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FAQ: First-Time Home Buyer Mistakes
Q: What is the biggest mistake first-time homebuyers make?
The most common mistake is not understanding the full cost of homeownership before buying. Most buyers focus on the mortgage payment and forget about property taxes, insurance, HOA fees, and ongoing maintenance. The total monthly cost of owning can be 20-30% higher than the mortgage payment alone. Building a complete budget before you start shopping prevents this shock.
Q: How do I avoid overpaying for a house?
Work with an experienced buyer’s agent who can pull comparable sales (comps) in the area and advise on fair market value. Always get a home appraisal as part of your financing – if the home appraises below the purchase price, you have grounds to renegotiate. Avoid getting into bidding wars driven by emotion rather than value.
Q: Should I buy a house before I feel completely ready?
There’s a difference between feeling emotionally ready and being financially ready. You don’t need to feel perfectly confident – most first-time buyers feel nervous. But you should have your finances in order: a stable income, a solid credit score, enough saved for a down payment and closing costs, and a monthly payment you can comfortably sustain.
Q: Is it okay to waive a home inspection to win a bidding war?
This is one of the riskiest moves a buyer can make. Home inspections typically cost $300-500 but can reveal problems worth tens of thousands of dollars. If the market requires you to waive the inspection, consider an informational inspection instead – you still get the information, even if you agree not to negotiate on findings. Never skip the inspection entirely if you can avoid it.
Q: What do I do if I regret buying my house?
Buyer’s remorse is extremely common – almost every first-time buyer has a moment of doubt. Give yourself 90 days to settle in before making any big decisions. Most “regrets” are temporary as you adjust to a new space and new responsibilities. If there are specific problems, work through them one at a time rather than treating the whole purchase as a mistake.
