Top 3 Mortgage Pitfalls Every First-Time Buyer Should Know

1️⃣ Not Getting Pre-Approved Before House Hunting

Many first-time buyers fall in love with a home before knowing what they can actually afford. Without a pre-approval letter, sellers may not take your offer seriously — and you might waste time looking at properties outside your budget.

How to avoid it: Get pre-approved early. This process gives you a clear idea of your price range, potential monthly payments, and closing costs. It also helps uncover any credit issues you can fix before applying for a mortgage.

Pro tip: Pre-approval is not the same as pre-qualification. Pre-approval involves verifying your income, assets, and credit — making it far more reliable when negotiating with sellers.

2️⃣ Focusing Only on the Interest Rate

It’s tempting to shop for the lowest rate you can find — but the rate alone doesn’t tell the full story. Some lenders advertise low teaser rates with high fees or unfavorable terms that end up costing you more in the long run.

How to avoid it: Look at the APR (Annual Percentage Rate), not just the interest rate. The APR includes closing costs, lender fees, and points, giving you a true comparison between loan offers. A slightly higher rate with lower fees might actually save you money overall.

Pro tip: Ask your loan officer to provide a side-by-side loan comparison so you can see your total costs over time.

3️⃣ Overstretching Your Budget

Many new buyers make the mistake of maxing out their pre-approved amount — only to realize later that they didn’t account for property taxes, insurance, HOA fees, and maintenance costs.

How to avoid it: Set a comfortable monthly payment, not the maximum one. Consider all ongoing costs, and leave room for savings and unexpected expenses.

Pro tip: A good rule of thumb is to keep your total housing costs under 30% of your gross income.

✅ The Bottom Line

Buying your first home doesn’t have to be overwhelming. By getting pre-approved, comparing total loan costs, and keeping your budget realistic, you’ll set yourself up for success — and enjoy the excitement of homeownership without the financial stress.

If you’re ready to take the first step, TrueKey Lending can guide you through every stage of the process — from pre-approval to closing.

📞 Call or text: (352-363-1311)

📧 Email: loans@truekeylending.com

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