Mortgage playbook · 9 tactics

9 Mistakes First-Time Buyers Make

Each one costs four or five figures and is avoidable in an afternoon.

Confusing pre-qualification with pre-approval

Pre-qualification is a conversation. Pre-approval involves verified documents and is what a seller actually respects.

Budgeting from the quoted rate

Quoted rates cover principal and interest only. Tax, insurance and mortgage insurance commonly add a quarter to the payment.

Borrowing the maximum approved

Underwriting uses gross income; you repay from net. The comfortable number sits well below the approved one.

Draining every reserve to reach twenty percent

Reaching the deposit threshold with nothing left for the first year of ownership swaps one problem for a worse one.

Not shopping the section you are allowed to shop

Title and settlement services are listed as shoppable on the Loan Estimate and frequently save more than negotiating the rate.

Opening new credit before closing

A new car loan between approval and completion can change the debt ratio enough to collapse the mortgage.

Skipping the inspection to win a bid

It removes the one mechanism that finds five-figure problems while you can still walk away.

Ignoring the transfer tax and prepaid escrow

They are real cash at closing, not fees to negotiate, and they surprise buyers who budgeted only for the deposit.

Forgetting to diarise the mortgage insurance removal date

It protects the lender while you pay for it. Nobody will remind you when the balance qualifies for removal.

Put it to work

Calculators for these tactics

Mortgage & Property

Home Affordability Calculator

How much house your income supports under the 28/36 underwriting rule.

Mortgage & Property

Closing Cost Calculator

Estimate cash needed at the table, line item by line item.

Mortgage & Property

Mortgage Payment Calculator

Full monthly payment including tax, insurance, PMI and HOA — plus the amortisation curve.

Real Estate

Home Sale Net Proceeds Calculator

Every deduction between the sale price and the cheque you actually receive.

Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.