Buying your first home in Orange County is exciting, but it can also be overwhelming. There are so many steps, decisions, and potential pitfalls. After helping hundreds of first-time buyers, we've seen the same mistakes happen again and again. Here are the seven most common mistakes and how to avoid them.
Mistake #1: Not Getting Pre-Approved First
- Falling in love with homes you can't afford
- Wasting time looking at wrong price ranges
- Missing out on homes because you're not ready
- Making offers without knowing your true budget
- Exactly how much you can afford
- What your monthly payment will be
- What rate you qualify for
- That you're a serious buyer (sellers prefer pre-approved buyers)
Pro tip: Pre-approval is different from pre-qualification. Pre-approval is more thorough and carries more weight with sellers.
Mistake #2: Looking at Homes Above Your Budget
- Disappointment when you can't afford them
- Wasting time on homes you can't buy
- Stretching your budget too thin
- Financial stress after closing
- Your income
- Your debts
- Your credit score
- Your down payment
Trust the numbers. If you want a more expensive home, save more or improve your financial situation first.
Mistake #3: Not Understanding All Loan Options
- FHA loans (3.5% down, lower credit requirements) - Learn more at HUD.gov
- Conventional 97 (3% down)
- Down payment assistance programs - Check California Housing Finance Agency (CalHFA) for state programs
- First-time buyer grants
- Explain all your options
- Help you find down payment assistance
- Match you with the best program
- Save you thousands
Pro tip: Don't assume you need 20% down. Many programs allow 3-5% down for first-time buyers.
Mistake #4: Skipping the Home Inspection
- You don't know what's wrong with the home
- You could inherit expensive problems
- You lose negotiating power
- You could be stuck with a money pit
- Make your offer more attractive in other ways (higher price, faster closing)
- Use inspection results to negotiate repairs or price reductions
- Walk away if major issues are discovered
- Know exactly what you're buying
Pro tip: Consider a pre-inspection before making an offer in very competitive situations.
Mistake #5: Not Understanding All the Costs
- Down payment (3-20% depending on loan type)
- Closing costs (2-5% of loan amount)
- Moving expenses ($1,000-$5,000+)
- Immediate repairs and updates ($5,000-$20,000+)
- Furniture and appliances ($5,000-$15,000+)
The Solution: Save 8-10% of the home price beyond your down payment for closing costs and move-in expenses. For a $600,000 home, that's $48,000-$60,000 total.
- 3% down payment: $18,000
- 3% closing costs: $18,000
- Moving and immediate expenses: $10,000
- Total needed: $46,000
Mistake #6: Making Major Financial Changes Before Closing
- Change jobs
- Buy a car
- Open new credit cards
- Make large purchases
- Cosign loans
This can derail your loan approval because lenders re-check your finances right before closing.
- Change jobs (unless absolutely necessary)
- Make large purchases
- Open or close credit accounts
- Cosign for anyone
- Make unusual bank deposits
Pro tip: If you must make a change, talk to your lender first. They can advise you on the best way to proceed.
Mistake #7: Not Working with the Right Team
- Who their friend used
- Who has the lowest commission
- Who responds fastest
- Who seems nicest
But the right team can make or break your home buying experience.
- Loan officer: Specializes in first-time buyers, explains everything clearly, responds quickly
- Real estate agent: Has experience with first-time buyers, knows your target areas, negotiates well
- Home inspector: Thorough, experienced, explains issues clearly
- Title company: Reputable, efficient, communicates well
Pro tip: Interview multiple professionals. Ask about their experience with first-time buyers and how they'll help you through the process.
Bonus: Common Orange County-Specific Mistakes
Not Understanding HOA Rules
- Exterior modifications
- Rentals
- Pets
- Parking
- Landscaping
Read the HOA documents carefully before buying.
Underestimating Property Taxes
- The tax rate in your area
- Any special assessments
- How taxes might increase over time
Not Considering Commute Times
- Your commute to work
- Access to freeways
- Proximity to amenities you need
How to Avoid These Mistakes
1. Get educated: Read articles, attend first-time buyer seminars, ask questions 2. Work with experienced professionals: Choose a team that specializes in first-time buyers 3. Take your time: Don't rush into a decision you'll regret 4. Ask questions: No question is too basic—your team should explain everything 5. Plan ahead: Save more than you think you need, get pre-approved early, understand all costs
The Bottom Line
Buying your first home is a big decision, but it doesn't have to be overwhelming. By avoiding these common mistakes, you'll set yourself up for success. The key is education, planning, and working with the right team.
At Enzo Maldini, we specialize in helping first-time buyers navigate the process with confidence. We'll explain every step, answer all your questions, and make sure you understand exactly what you're getting into.
Ready to buy your first home? Get pre-approved and start your journey on the right foot. Explore first-time buyer programs, visit our first-time buyer landing page, or read our complete first-time buyer guide.