What Do First-Time Buyers Wish They Knew? 15 Regrets & Mistakes to Avoid
"I wish I had known that..." This is what experienced homeowners say. They made mistakes. They overpaid. They didn't negotiate. They bought too much house. Learn from their regrets so you don't repeat them.
⚡ Quick Answer:
The 3 biggest mistakes: (1) Not shopping lenders (costs $36K over 30 years), (2) Buying too much house (leads to being house-poor), (3) Not budgeting for maintenance (1-2% of home value annually). Avoid these by comparing 3-5 lenders, buying 20-30% below your approval amount, and budgeting $4K-$8K/year for maintenance on a $400K home.
The Reality:
Most first-time buyers make 3-5 major mistakes that cost them $10,000-$50,000.
Don't be one of them. Learn from others' regrets.
The 15 Biggest Regrets
1. "I didn't shop around for lenders"
The Regret: Accepted first lender's offer. Paid 0.5% higher rate.
The Cost: $100/month extra = $36,000 over 30 years
The Lesson: Compare at least 3-5 lenders. Takes 1 hour. Saves thousands.
2. "I didn't negotiate closing costs"
The Regret: Paid full closing costs. Didn't ask for credits or fee reductions.
The Cost: $2,000-$5,000 extra
The Lesson: Closing costs are negotiable. Ask for lender credits or fee waivers.
3. "I bought too much house"
The Regret: Lender approved $500K. Bought $500K home. Now house-poor.
The Cost: Stress, no savings, can't afford maintenance
The Lesson: Just because you CAN borrow it doesn't mean you SHOULD. Buy 20-30% less than approved amount.
4. "I didn't budget for maintenance and repairs"
The Regret: Roof needed replacement ($15K). HVAC broke ($8K). Plumbing issues ($3K).
The Cost: $26,000 in first 3 years
The Lesson: Budget 1-2% of home value annually for maintenance. Older homes need more.
5. "I didn't get a thorough home inspection"
The Regret: Skipped inspection to save $400. Found foundation cracks after closing.
The Cost: $25,000 foundation repair
The Lesson: Always get a professional inspection. It's the cheapest insurance you'll buy.
6. "I didn't negotiate the purchase price"
The Regret: Offered asking price. Later found out seller would have accepted 5% less.
The Cost: $20,000 on $400K home
The Lesson: Always make an offer below asking. Worst case: seller says no. Best case: you save tens of thousands.
7. "I didn't check the neighborhood thoroughly"
The Regret: Bought home without visiting at different times. Didn't know about noise, traffic, crime.
The Cost: Unhappy, hard to sell, resale value suffers
The Lesson: Visit neighborhood multiple times (day, night, weekday, weekend). Talk to neighbors.
8. "I didn't understand PMI"
The Regret: Put down 5%. Paying PMI ($200/month). Didn't know it was permanent until 20% equity.
The Cost: $24,000 over 10 years
The Lesson: PMI is expensive. Try to put down 10-20% to avoid it. Or refinance when you hit 20% equity.
9. "I didn't lock in my rate early enough"
The Regret: Waited to lock rate. Rates jumped 0.5%. Locked in higher rate.
The Cost: $100/month extra = $36,000 over 30 years
The Lesson: Lock rate when you're ready to close. Don't gamble on rates.
10. "I didn't ask about the appraisal"
The Regret: Appraisal came in $30K low. Had to renegotiate or bring more cash.
The Cost: Stress, delays, $30K more cash needed
The Lesson: Understand appraisal process. Have backup plan if appraisal is low.
11. "I didn't read the mortgage documents"
The Regret: Signed documents without reading. Didn't notice prepayment penalty.
The Cost: $5,000 prepayment penalty when refinancing
The Lesson: Read every document. Ask questions. Don't sign if you don't understand.
12. "I didn't budget for property taxes"
The Regret: Didn't realize property taxes were $8,000/year. Shocked at closing.
The Cost: $8,000/year = $240,000 over 30 years
The Lesson: Research property taxes BEFORE buying. They vary dramatically by location.
13. "I didn't check my credit before applying"
The Regret: Had errors on credit report. Denied for mortgage. Took 3 months to fix.
The Cost: Lost dream home, delayed purchase, stress
The Lesson: Check credit 6 months before buying. Dispute errors early.
14. "I didn't ask about HOA fees"
The Regret: HOA fees were $500/month. Didn't budget for it. Can't afford.
The Cost: $6,000/year = $180,000 over 30 years
The Lesson: Factor HOA fees into your budget. They can increase annually.
15. "I didn't have an emergency fund"
The Regret: Lost job 6 months after closing. Couldn't make mortgage payment. Foreclosure.
The Cost: Lost home, destroyed credit, financial ruin
The Lesson: Have 6-12 months emergency fund BEFORE buying. Life happens.
How to Avoid These Regrets
✅ Before Buying
- Check credit score
- Get pre-approved
- Shop multiple lenders
- Research neighborhoods
- Budget for maintenance
- Build emergency fund
✅ During Purchase
- Get home inspection
- Negotiate price
- Negotiate closing costs
- Understand appraisal
- Read all documents
- Ask questions
FAQ: First-Time Buyer Regrets
Can I refinance if I made a mistake?
Yes! If rates drop or your credit improves, you can refinance. But it costs money.
What if I'm already in a bad mortgage?
Talk to your lender about refinancing. Or consult a mortgage broker for options.
Is it too late to fix my mistakes?
Not always. Refinancing, home equity loans, or selling are options. Talk to a professional.
How do I avoid buyer's remorse?
Do your homework. Get pre-approved. Get inspections. Negotiate. Make informed decisions.
Should I wait to buy if I'm worried?
If you're not ready, wait. Buying a home is a big decision. Don't rush.
Ready to Avoid These Mistakes?
Get pre-approved from the right lender and make an informed decision.
Get Pre-Approved Smart →The Bottom Line
First-time buyers make mistakes. But you don't have to. Learn from others' regrets. Do your homework. Ask questions. Make informed decisions.
Your future self will thank you for avoiding these 15 regrets.
Meet Michael
Reverse Mortgage & Senior Specialist
Michael Thompson is a leading expert in reverse mortgages and senior financing solutions with 15 years of specialized experience. As a certified HECM specialist, he has helped thousands of seniors access their home equity for retirement planning. His compassionate approach and deep knowledge of FHA reverse mortgage guidelines make him a trusted advisor for families navigating senior housing and financial planning decisions.
EXPERTISE:
KEY ACHIEVEMENT:
Helped 3,000+ seniors access $500M+ in home equity