What is the biggest mistake home buyers make?

The most costly mistake is not comparing multiple lenders. The CFPB estimates that borrowers who compare at least 3 lenders save over $3,000 on average. Many buyers just go with their bank or the first lender recommended by their agent.

Should I waive the home inspection to win a bid?

No. While waiving the inspection may make your offer more competitive in a hot market, a $400-$500 inspection can uncover tens of thousands in hidden problems. Consider an inspection with an information-only clause instead.

Can I buy furniture before my mortgage closes?

No, wait until after closing. Large purchases increase your debt-to-income ratio and may result in new hard credit inquiries. Both can jeopardize your loan approval. Your lender does a final credit check right before closing.

When should I lock my mortgage rate?

Lock your rate as soon as you have a signed purchase agreement. Rates can change daily. Most rate locks are 30-60 days. If you are concerned rates might drop, ask about a float-down option that lets you lock but benefit if rates decrease.

Common Mortgage Mistakes: Avoid These Costly Errors

First-time and repeat buyers alike make these expensive mistakes. Learn what not to do before, during, and after the mortgage process — and save thousands.

Before You Apply

Not Checking Your Credit First

Errors on credit reports are found on 1 in 5 reports. Dispute mistakes at AnnualCreditReport.com at least 3 months before applying. Even small corrections can improve your rate. See our credit score guide.

Shopping Without Pre-Approval

Falling in love with a home you cannot afford wastes time and emotional energy. Get pre-approved before house hunting to know your real budget.

Not Comparing Lenders

The CFPB estimates that comparing just 3 lenders saves borrowers an average of $3,000+ over the loan. Rates, fees, and closing costs vary significantly between lenders.

Ignoring Down Payment Help

Many buyers do not know about assistance programs that offer grants and forgivable loans. Some provide $10,000-$25,000+ in free down payment assistance.

During the Process

Changing Jobs Mid-Process

Lenders verify employment right before closing. Switching jobs, going from salary to commission, or starting a business can delay or kill your loan approval.

Making Big Purchases

Buying a car, furniture, or opening new credit cards before closing changes your DTI ratio and credit score. Wait until after you have the keys.

Waiving the Home Inspection

In competitive markets, buyers waive inspections to win bids. A $500 inspection can uncover $50,000+ in hidden problems. Never skip it.

Not Locking Your Rate

Rates can move 0.25-0.50% in a week. Once you have a signed purchase agreement, lock your rate immediately to protect against increases. Ask about float-down options.

Choosing the Wrong Loan

Mistake	Cost	Better Option
FHA when you have 20% down + 740 credit	Unnecessary MIP ($200+/mo)	Conventional (no PMI)
30-year when you can afford 15-year	$100K+ extra interest	15-year mortgage
ARM when you plan to stay 10+ years	Rate shock after fixed period	Fixed-rate mortgage
Conventional with 580 credit	Higher rate + larger PMI	FHA loan (lower rate at 580)
Not considering VA (if eligible)	Paying PMI + higher rate	VA loan (0% down, no PMI)

After Closing

Post-Closing Mistakes

Not building an emergency fund — aim for 3-6 months of housing costs saved before and after buying
Forgetting to remove PMI — request PMI removal when you reach 20% equity; it does not always happen automatically
Missing the mortgage interest deduction — itemize taxes if your mortgage interest + state/local taxes exceed the standard deduction
Never refinancing — if rates drop 0.50-0.75%+ below your current rate, calculate your savings
Taking on too much renovation debt — prioritize needs over wants in the first year

The Bottom Line

Most mortgage mistakes boil down to not doing enough research and not comparing options. Use our mortgage calculators, compare today's rates, and explore loan types to make an informed decision. A few hours of research can save you tens of thousands of dollars.