First-Time Home Buyers: 3 Moves to Make (and 3 Mistakes Not To)

By Elizabeth Smith

April 20, 2026

Learning how to buy a house is a big undertaking, no matter what stage of life you're in. From touring properties to navigating the mortgage process, the experience can feel overwhelming. To make your life a little easier, use these first-time home buyer tips to find a property that fits your finances and your life — and avoid common first-time home buyer mistakes in the process.

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What Are Some Common Mistakes Made by First-Time Home Buyers?

Buying a house involves realtors, lenders, sellers' agents, and lots of paperwork. A lot can go wrong, but when you're aware of first-time home buyer mistakes, you can avoid potential pitfalls.

Not Budgeting for Total Costs

Many first-time home buyers make a budget based on the cost of the house, but forget to account for other expenses. In addition to the purchase price, you might also need to pay for:

Closing costs: These are the fees you pay to cover things like mortgage processing, a year of homeowners insurance premiums, title insurance, and other costs associated with the sale. They typically amount to 2% to 5% of the price of the house.
Mortgage insurance: If your down payment is less than 20% of the sale price, you'll probably need to buy mortgage insurance.
Property taxes: Taxes vary by location, but could range anywhere from $200 to $10,000 (CAD 276 to CAD 13,797) per year.
HOA fees: Houses located in a Homeowners Association (HOA) come with mandatory membership dues. Median HOA fees range from $63 (CAD 87) for single-family homes to $420 (CAD 579) for condos, but could be significantly higher or lower depending on where you live.

These costs can affect both your upfront costs and your monthly payment, so it's important to do the math in advance. If you don't, you might end up wasting time looking at houses you can't afford.

Buying Based on What You Can Borrow

When you're getting pre-approved for a mortgage, lenders will often tell you the maximum amount you can borrow. First-time home buyers often start shopping based on this number without considering whether they can actually afford it.

Buying based on what you can borrow can leave you "house poor" — spending so much on monthly housing costs that you don't have money left over for things such as:

Entertainment
Childcare
Utilities and groceries
Repairs and maintenance
Emergency expenses
Vacations

To avoid this trap, go into the buying process with a clear idea of what you can comfortably afford to pay each month. That way, you'll be able to narrow your search to houses that fit into your budget.

Not Doing an Inspection or Final Walkthrough

After you fall in love with a house — or you want to beat out other buyers in a competitive market — it can be tempting to skip the inspection. This is a mistake; the inspection can reveal hidden issues that could end up costing you a lot of money in the long run.

The same goes for the final walkthrough. A lot can happen between showing and closing, and the walkthrough is your last chance to make sure that everything is in order. You can use the time to:

Make sure the property is empty and in the same condition
Check that all included appliances and fixtures are still in the home
Verify that the sellers have followed through on repairs or upgrades
Look for new damage
Test all major systems (water, electricity, lights, appliances, etc.)

If you skip the walkthrough and go straight to closing, you might have a hard time resolving these issues later on. In situations where repairs are unfinished or the owners leave a bunch of stuff behind, you could end up covering the bill.

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What Things Should First-Time Home Buyers Do to Avoid Missteps in the Home-Buying Process?

So how can you avoid common home-buying mistakes? Start the process with financial clarity, plenty of time, and an open mind. These first-time home buyer tips can help you have the best possible experience.

Get Your Finances in Order

Before you start the process of buying a house, get your finances in order. Your financial health can affect everything from the mortgage rate you qualify for to the amount you can borrow.

Things to consider before applying for your first home mortgage include:

Saving for a down payment: A bigger down payment can translate to lower monthly payments. Requirements vary based on your credit score and lender. If you're getting a first-time homeowners loan through the Federal Housing Administration (FHA), you may need a down payment of 3.5% to 10%.
Improving your credit score: Many lenders require a minimum score of 620. If you have a lower score, you might be able to use the FHA's first-time buyer program to get financing. These loans often accept buyers with credit scores as low as 500.
Paying off debt: Lenders often consider your debt-to-income ratio when setting a mortgage rate and determining how much you can borrow.

Don't stop monitoring your finances once you get approved for a mortgage. Your lender will likely check your credit score before closing, and if it's lower, you could end up with less favorable terms. Make sure to stay on top of your monthly payments, keep your credit utilization low, and avoid taking out new loans or opening new credit cards.

Maintaining your credit score until closing is one of the most important first-time home buyer tips. Doing so can save you thousands over the lifetime of your mortgage.

Take Your Time

As a first-time buyer, you don't know what you don't know — so it's important to take your time. A house is one of the biggest purchases you'll make in your lifetime, and it can affect your finances (and your life) for years to come.

When buying your first home, give yourself plenty of time to:

Understand what you need to buy a house
Get to know the local housing market
Learn to spot a good value
Find a property that fits your budget and your needs
Shop around for financing

Moving slowly gives you time to analyze your options and make a smart decision. It can also help you avoid buyer's remorse down the line.

Visit Multiple Properties

Buying a house for the first time is exciting, and you might be tempted to put in an offer on the first great property you see. Instead, spend some time viewing multiple homes in your desired area. The more you look, the easier it is to figure out what you actually want.

The results can be surprising. You might find a specific layout that suits your lifestyle, for example, or realize that your list of "must-haves" isn't feasible in your price range. You'll also get better at identifying red flags that indicate expensive issues, such as a sagging foundation, moisture problems, or a damaged roof.

Ready to look at houses but not ready to choose a realtor? Try going to open houses. It's a low-pressure way to get a sense of what's out there without making a commitment. Plus, you'll start to understand what styles, features, and amenities work best for you.

Putting First-Time Home Buyer Tips Into Action

When it comes down to it, a smart first-time home purchase comes down to education, organization, and time. When you're informed about the housing market and your finances, you can make a decision that benefits you and your family in the long run.

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