10 Mistakes First-Time Buyers Make (And How to Avoid Them)
Buying your first home is an exciting milestone, but it can also feel overwhelming, especially in a competitive market like Greater Seattle. From Bellevue to Bothell, Kirkland to Kent, navigating the home buying process requires not only patience but a smart strategy. As a real estate team who has helped numerous first-time buyers throughout the state, we’ve seen where people often trip up. We’re here to help you avoid those same mistakes.
Here are 10 common mistakes first-time buyers make and how you can steer clear of them.
1. Not Interviewing Multiple Real Estate Agents
Choosing a buyer’s agent is one of the most important decisions you'll make. Don’t just go with the first agent you meet, interview at least two or three. You want someone who’s experienced in your target neighborhoods and has a proven track record.
Questions to ask:
How many homes did you sell last year?
What areas do you specialize in?
What’s your approach to finding off-market or new listings?
What unique value do you provide to buyers?
A great agent will not only help you find the right home but will also guide you through inspections, negotiations, and competitive offer strategies.
2. Upping Your Budget Beyond Your Means
Just because you’re preapproved for a certain amount doesn’t mean you should spend it all. Seattle-area homes can be pricey, and stretching your budget too far can cause financial stress down the line.
Things to consider:
Set a monthly payment range you’re truly comfortable with.
Factor in current interest rates to estimate your mortgage.
Understand your property tax and homeowners insurance costs (we recommend getting a quote for home insurance ahead of time as these numbers can vary depending on the location of the home)
Don’t forget HOA dues if you're buying a condo or townhome—they can rise over time.
Buying a home should be empowering, not anxiety-inducing. Stick to a price that aligns with your lifestyle today, not your projected future income.
3. Waiting to Get Pre-Approved Until You Find “The One”
In a fast-paced market, time is of the essence. Getting pre-approved and, ideally, pre-underwritten before you start looking seriously gives you a competitive edge.
Why it matters:
You’ll know your maximum purchase price.
You can make an offer quickly when you find a home you love.
Sellers take pre-approved buyers more seriously, especially when there are multiple offers.
Talk to a trusted local lender early in the process—it can make all the difference.
4. Making Big Purchases Before or During Escrow
Hold off on buying that new couch, car, or booking a big vacation, at least until after closing. Major financial changes can impact your credit score or debt-to-income ratio and jeopardize your loan approval.
Avoid:
Opening new credit cards
Financing large furniture purchases
Making big withdrawals or transfers
Switching banks or co-signing loans
Your lender will likely run a final check before funding your loan, so it’s important to stay financially steady throughout the transaction.
5. Changing Jobs Right Before Buying
Lenders want to see stability in your employment and income. Switching jobs, especially to a new field or commission-based role, can delay or even derail your home loan approval. If possible, hold off on career changes until after your home purchase is complete. If a job change is unavoidable, talk to your lender in advance to understand how it might affect your loan qualification.
6. Overlooking the Importance of Location
It’s easy to fall in love with a home’s kitchen or natural light, but don’t forget to evaluate the neighborhood. Commute times, school districts, walkability, and future development plans can all affect your long-term satisfaction (and resale value). School districts are especially important to consider when looking at homes as it can effect your future home value. Even if you don’t have a family or aren’t planning to, the future buyers of your home might and they will be taking this into consideration.
In the Greater Seattle area, every neighborhood, from Ballard to Bellevue, offers something different. Think about your daily lifestyle and how your surroundings support it. One great way to get a feel for a neighborhood you are seriously considering is to rent an Airbnb for a weekend and spend some time “living” in the area. Walk to a coffee shop, buy groceries at the neighborhood grocery store, visit a park; these are all great ways to understand if you truly enjoy the neighborhood feel and it checks the boxes that are important to you.
7. Not Budgeting for Closing Costs and Move-In Expenses
Beyond your down payment, you’ll need cash for closing costs (typically 2–5% of the home price), moving expenses, and initial home improvements. Be sure to budget accordingly so you’re not caught off guard.
Examples of move-in costs:
Home inspection and appraisal fees
Title and escrow fees
Utility setup and deposits
Homeowner’s insurance costs
Repairs or upgrades before moving in
8. Skipping the Fine Print in the HOA Rules
If you’re buying a condo or townhome in Seattle or the Eastside, you’ll likely deal with a homeowners association (HOA). Be sure to review the HOA’s financials, rules, and restrictions before committing.
Look out for:
Pet, rental, or remodeling restrictions
Upcoming special assessments
How well the HOA maintains reserves for future repairs
An experienced agent will help you evaluate the HOA docs so you know what you’re signing up for.
9. Getting Discouraged After Losing a Multiple Offer Scenario
In hot markets like Seattle and the Eastside, it’s not uncommon to face multiple offer situations. If you’re offering on newly listed homes in great neighborhoods, it is highly likely that at some point you will end up in this situation, and possible that you may not end up getting the home, perhaps because someone was willing to go above your max price or they were willing to waive certain contingencies. Losing out on a home can feel crushing, but don’t let it derail your journey.
It’s important to remember:
You didn’t overpay for a house that may not have been the right fit.
New homes come on the market every week.
Each offer you write helps you understand the process better and fine-tune your strategy.
It’s also ok to take a break from the home search for a minute to reset. Let your agent know you need some time to regroup and then when you’re ready to get back at it.
It’s your journey. Stay patient and persistent. It will pay off.
10. Assuming You Can’t Compete Without a Huge Down Payment
Many first-time buyers think they need 20% down to be competitive, especially in hot markets like Seattle. The truth? Plenty of successful buyers put down 3–10%, especially with strong pre-approval, earnest money, and a compelling offer strategy. In fact, a high earnest money amount can help seal the deal if you are needing to make a lower down payment. It truly comes down to understand what is important to the seller, which will vary from home to home. Be sure to talk to your agent about how they suggest you approach making offers in this situation and let them guide you through the process.
There are also loan programs and grants specifically for first-time buyers that can help bridge the gap. Your agent and lender can help you explore all your options.
Final Thoughts
Buying your first home in the Seattle area can feel intimidating, but avoiding these common mistakes will set you up for success. The right real estate team will educate, empower, and advocate for you every step of the way. If you’re thinking about buying your first home in Seattle or the Eastside, we’d love to chat. Let’s make your first home purchase an amazing experience, from start to finish!
Want help getting started? Contact the Veronica Morss Real Estate team today for a free consultation and home buyer guide customized to your goals.