10 First Time Home Buyer Mistakes

We often meet buyers excited to find their first home in Colorado Springs—but unsure where to start. It’s an adventure, for sure! Thrilling and full of possibilities, but also…a little intimidating, with ample room for error.

There’s a lot to figure out—FHA loans, down payments, credit scores, mortgage lenders—the list goes on. But don’t worry. We’ve put together a practical list of things not to do, to help you learn what to do.

After all, buying a home isn’t just about finding the perfect property—it’s also about understanding what it takes to get there. Our mission is to help you make smart choices, every step of the way.

>>Download the Home Buyer Guide<<

1. You Didn’t Get Pre-Approved For a Loan

Getting pre-approved is one of the smartest first steps. It’s a lender’s way of saying, “Yes, we’re willing to loan you up to X amount.” Here’s why it matters:

It sets a clear budget for your home search.
It strengthens your offer by showing sellers you’re serious.
It can speed up closing, which is crucial in a competitive market.

Bonus tip: Ask for fee sheets from at least three lenders. Compare their rates, fees, and terms to find your best match. Your pre-approval doesn’t obligate you to move forward with the loan.

2. Underestimating Monthly Expenses

A loan pre-approval might show what you can afford—but what about what you’re comfortable paying?

Be sure to factor in:

Property taxes
Homeowners insurance
HOA fees
Utility costs (especially if moving into a larger home or from a different climate)
Routine maintenance

Sit down with your real estate agent and a tax professional to run the numbers. You might also qualify for assistance programs like down payment help or Colorado-specific tax incentives for first time buyers.

3. Focusing too much on surface level aesthetics: You Can’t See “The Good Bones” Of a Home

Sometimes buyers get hung up on outdated décor—popcorn ceilings, retro tile, funky wallpaper, and deferred maintenance. But don’t let aesthetics distract you from solid structure and a great layout.

Remember:

You can often update cosmetic features affordably.
A contractor can help with bigger changes if needed.
Fresh paint, new light fixtures, or cabinet hardware go a long way!

4. You Didn’t Believe the Mantra: Location, Location, Location

You can renovate a kitchen—but you can’t move the neighborhood.

Do your homework:

Visit at different times of day, you may see it in… a new light (pun intended).
Chat with neighbors, you may be surprised at the candid insights you recieve.
Research school ratings.
Ask your realtor about price trends in the area.

People tend to focus on location purely in terms of resale value, but remember you will own property and likely live where you are buying. What initially seems like a minor annoyance can grow into a real thorn in your side over the course of a 30 year mortgage.

Click here to download the Colorado Springs Neighborhood Guide

5. Being Too Picky or Too Hasty

Yes, create your wish list. But keep in mind: perfection may not exist within your budget. Be open to compromise or plan to rent a bit longer while you save up.

And don’t let shiny finishes distract you. You are looking for real, long term value. Ask yourself:

Can I add value over time?
Does this home meet my long-term needs?
Is the price worth the fleeting clout you’ll get from showing off butcher block countertops and the like on Instagram?

Related Reading: Steps to Buy a Home

6. Buying the Most Expensive House on the Block

If you’re planning to stay forever, this might not matter much. But if you’ll sell someday, buying the priciest house in the neighborhood could hurt your resale value.

People shopping for a $600k home, will look for it in a $600k neighborhood. Moreover, lower-priced homes nearby will impact your appraisal.

Related Reading: Find Your Dream Home

7. Skipping the Home Inspection

Always. Get. An. Inspection. Seriously. Many people don’t even like pleasant surprises, don’t set yourself up for an unpleasant one with what is likely the biggest purchase of your life.

It’s your safety net:

Understand the home’s true condition.
Use findings to negotiate repairs or price reductions.
Walk away if the issues are too much to take on.

Related Reading: Attending the Inspection

8. Hiring the Seller’s Agent to Represent You as the Buyer

The seller’s agent works for the seller. Full stop. As a buyer, your agent’s services are typically free (the seller pays). So why not have someone advocating just for you? Even the best meaning

Choose a buyer’s agent who puts your needs first and can guide you through negotiations, inspections, and paperwork.

Related Reading: Partnering with the Right Realtor

9. Overlooking Closing Costs

Closing costs can range from 3–5% of your home’s price.That’s on top of your down payment. Don’t let this predictable expense trip you up at the finish line.

These costs may include:

Lender fees
Title insurance
Government taxes
Home appraisal
And more

Ask your lender for a detailed estimate. And check out programs that help cover closing costs if needed.

10. Spending Big While House Hunting

Hold off on that new car, furniture set, or vacation. Major spending or new credit lines can impact your loan approval—yes, even after pre-approval.

Lenders check credit again before closing. Any changes could delay or derail the process.

Pro Tips for First-Time Home Buyers:

Now that we’ve covered a few do not’s, let’s go over some do’s.

Start Early: Talk to at least 3 lenders to understand your options. A loan pro can help you create a timeline and strategy. Before any of that though, ensure your credit is in the best shape possible.
Have a Plan: Share your goals with your lender and realtor—investment, long-term living, low down payment? Your goals guide the right loan and home choice.
Consider Conventional Loans: If you have savings, these might be a good fit with competitive interest rates.
Look Into USDA Loans: Zero down and available in designated rural areas near Colorado Springs.
Explore CHFA Programs: CHFA’s First Step™ and other programs offer down payment assistance and mortgage insurance perks.
Check Out Tax Credits: The Mortgage Credit Certificate offers tax savings if you qualify.
Use a First-Time Homebuyer Savings Account (FTHSA): Tax-free savings for your down payment.
Apply for Home Modification Grants: For buyers with disabilities, these can fund home adjustments post-purchase.

Save, Save, Save: Budget for your down payment, inspection, closing costs, moving expenses, and unforeseen externalities.

Conclusion

Buying a home involves many moving parts, new terms, and—yes—lots of paperwork (even in our digital era). But it all starts with a conversation. Speak with a lender to understand your financial picture, then connect with a trusted real estate pro who can guide you through the process with confidence and clarity.

Got questions? I’d love to help. Contact me today, and we’ll start charting a course for your future home!

Let’s make your Colorado home dream come true!

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