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9 Costly Homebuyer Mistakes

(And How to Avoid Them)

Smart strategies to navigate the market flawlessly and protect your peace of mind.

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Nine Mistakes That Cost Homebuyers Thousands

You've made it through eight blogs in this series. You know how the process works, you know what questions to ask, and you know what to watch out for. Now let's talk about the mistakes that undo all of that preparation - the decisions buyers make that derail deals, delay closings, cost thousands of dollars, or sometimes cost them the home entirely.

Some of these are obvious in hindsight. Some of them were recommended by a well-meaning salesperson who had no idea what they were doing to your mortgage approval. All of them are avoidable.

⚠ CAPTAIN’S WARNING

The Mistakes That Break Deals

MISTAKE #1: Opening New Credit Cards or Taking on New Debt Before Closing

This is the mistake that breaks deals more than almost anything else - and it happens constantly. A buyer goes under contract, feels the excitement of homeownership approaching, and starts making financial moves that seem completely reasonable. A new credit card to earn rewards on the furniture they're going to buy. A car loan because they need a new vehicle. A store credit account at a furniture showroom.

Every one of those actions can change your credit score, alter your debt-to-income ratio, or flag your file with the lender during the final underwriting review. And lenders pull credit one more time before closing.

✦ CAPTAIN’S LOG

The Honda Odyssey

I spent a year and a half working with a mother and daughter to get their credit scores where they needed to be to qualify for their first home. A year and a half. We finally got there - credit scores up to 620, loan approved, offer accepted, inspections done. We were reviewing the home inspection findings together when they pulled up in a brand new Honda Odyssey. I looked at that van and I said: 'That's a nice van. Are you going to sleep in it? Because you just lost this house.'

The daughter told me the car salesperson had said a vehicle was an asset. Let me be clear: a financed vehicle is not an asset. It is a liability the moment you drive it off the lot. It depreciates immediately and you owe money on it. The salesperson said what they needed to say to get her to sign and feel okay about it. That is what some salespeople do - they are not thinking about your mortgage approval. They are thinking about their sale. The new car payment changed their debt-to-income ratio so significantly that their loan approval amount dropped. The homes they could now qualify for were not homes they were happy with. After a year and a half of hard work rebuilding their credit, after finally getting approved, after finding the right house - they ended up continuing to rent. The car salesperson moved on to their next customer. Nobody else was in their corner. When you are under contract and your credit is looking strong, salespeople will come for you. Stay away from all of it until after you close.

THE FIX: Do not open any new credit accounts, take on any new debt, or make any major purchases between contract ratification and closing. Not a car. Not furniture. Not a credit card. Not a store account. Wait until the day after closing. One day. That's all it takes. One increasingly common trap that catches buyers off guard: Buy Now Pay Later apps. Services like Klarna, Affirm, Afterpay, and Sezzle feel like a convenient way to split a purchase into smaller payments - but they are credit products. They can show up on your credit report, affect your debt-to-income ratio, and flag your file during the lender's final underwriting review. Many buyers use these apps without realizing they are taking on new debt. If you have any of these apps on your phone, do not use them between contract and closing. The lender does not care that it was only four payments of $25. What they see is new debt that was not there when they approved you.

MISTAKE #2: Financing Furniture Before You Own the Home

This is closely related to Mistake 1 but common enough to deserve its own entry. The furniture industry knows buyers are coming. Showrooms are often located near new construction communities. Salespeople are trained to tell buyers that furniture financing is easy, flexible, and harmless. They are not thinking about your mortgage.

❖ FROM THE FIELD

The $14,000 Furniture Mistake

A colleague of mine had a client who went out and financed over fourteen thousand dollars worth of furniture before her closing. She was excited - she had a vision for how the new home was going to look, she found exactly what she wanted, and she took the financing offer without a second thought. What happened next was predictable to everyone in real estate but completely blindsiding to her: the new debt changed her debt-to-income ratio and she no longer qualified for the home. She had to put fourteen thousand dollars worth of brand new furniture in storage. She could have waited one day after closing. Instead she waited months - paying for storage - while she sorted out her finances.

THE FIX: The furniture will still be there after closing. The house might not be if you finance it first. Wait.

MISTAKE #3: Changing Jobs During the Loan Process

Lenders approve you based on your current employment status, income, and history. A job change - even a lateral move or a promotion - can complicate or derail your loan approval, especially if it involves a change in the type of income (from salaried to commission, for example) or a gap in employment.

If you're planning a career move, talk to your lender before you make it. Some changes are manageable with the right documentation and timing. Others can push your closing back significantly or require starting the approval process over.

THE FIX: : If you're under contract or in the pre-approval process, keep your employment situation stable. If a job change is unavoidable, tell your lender immediately so they can advise you on how to handle it.

MISTAKE #4: Skipping the Home Inspection

We covered this in depth in Blog 6, but it belongs on this list because buyers still do it - especially in competitive markets where waiving inspections feels necessary to win a bidding war.

In Blog 6 we shared the story of a brand new construction home with a six-inch gap in the roof structure that the roofers shingled right over. And the home where a fire in the attic had been painted over. Both of those were discovered by inspectors. Both of those would have become the buyer's problem if there had been no inspection.

THE FIX: : The short-term gain of winning a bidding war is not worth the long-term cost of inheriting a major problem you did not know about. But never waiving an inspection entirely and walking in blind are not your only two options. Experienced buyers in competitive markets sometimes use an inspection for informational purposes only. You still get the inspection - you still know exactly what you are buying - but you are not making the contract contingent on the seller making repairs. The seller does not have to fix anything. What you are buying is knowledge. Sellers are not afraid of inspections themselves - they are afraid of repair requests and costs. An inspection for informational purposes removes that concern while still protecting you from inheriting a serious problem you never knew about. Talk to your agent about whether this approach makes sense in a specific competitive situation. For cash buyers: there is no lender requiring a moisture and termite inspection if you are not financing. But the Hampton Roads climate makes termite and moisture issues a real risk regardless. Skipping it is still not advisable.

MISTAKE #5: Not Shopping Around for Homeowner's Insurance

Most buyers think about homeowner's insurance at the last minute - when the lender asks for proof of coverage before closing. By that point, they grab the first quote they get and move on. That can be an expensive habit.

Homeowner's insurance rates vary significantly between providers for the same coverage. In coastal Virginia, where flood risk, wind exposure, and proximity to water affect premiums, shopping multiple quotes can save hundreds of dollars per year. Over the life of a loan, that adds up to thousands.

Also important: standard homeowner's insurance does not cover flood damage. In Hampton Roads, where flooding is a real and growing concern in many neighborhoods, knowing whether you need a separate flood insurance policy - and what it costs - should be part of your budget planning before you make an offer.

THE FIX: : Get at least three homeowner's insurance quotes before closing. Ask each insurer about flood coverage and whether the property is in a flood zone. Factor the annual premium into your monthly budget calculation.

MISTAKE #6: Moving Money Around Between Accounts Without Telling Your Lender

Lenders track the source of every dollar you're using for your down payment and closing costs. Large transfers between accounts - even your own accounts - raise flags during underwriting because they need to verify where the money came from. If your lender sees a $20,000 deposit hit your checking account right before closing, they're going to want to know what it is, where it came from, and whether it needs to be paid back.

Gift funds from family members have their own documentation requirements. Transfers from savings to checking need to be traceable. Moving money around without a paper trail creates delays and sometimes kills deals.

THE FIX: : Before moving any significant amount of money between accounts, talk to your lender. Let them guide you on the timing and documentation. Simple moves that seem harmless can create major headaches if they're not handled correctly.

MISTAKE #7: Waiting Too Long to Start the Process

A lot of buyers spend months or even years thinking about buying a home before they take any concrete steps. They watch the market, they browse Zillow late at night, they talk about it - but they don't get pre-approved, they don't talk to an agent, and they don't find out what it would actually take to make it happen.

Meanwhile, interest rates change. Home prices in Hampton Roads have appreciated significantly over the past several years. Every month a buyer waits is a month of equity they're not building and a month of rent they're paying someone else's mortgage with.

In some cases, buyers who "aren't ready yet" are actually closer than they think. A conversation with a lender can reveal that the path to homeownership is shorter and more accessible than assumed. And in cases where there's real work to do - credit improvement, debt paydown, savings - finding out early gives you time to do something about it.

The mother and daughter I mentioned earlier - the ones who ultimately lost a deal over the new van - originally came to me two years before that with credit scores that weren't where they needed to be. Instead of waiting and hoping things would improve on their own, we made a plan. We tracked their progress. After a year and a half, they were ready. The work paid off. Don't wait to find out where you stand.

THE FIX: : The best time to start the process is before you think you're ready. Get a pre-approval conversation scheduled. Find out where you are. Then you'll know exactly what it takes to get where you want to be.

MISTAKE #8: Making Decisions Based on Emotion Instead of Data

Buying a home is emotional. That's normal and it's okay. But when emotion overrides data, buyers end up overpaying for homes in the wrong location, overlooking serious problems because they're in love with the kitchen, or making rushed decisions they regret.

In Hampton Roads specifically, the most common emotional mistake is falling in love with a house on the wrong side of the water from where you work. The tunnel commute reality is something buyers consistently underestimate until they're living it every day.

Other emotional mistakes: overbidding past your budget because you don't want to lose, ignoring inspection findings because you don't want to rock the boat, and rushing into a purchase because you're tired of looking.

THE FIX: : Trust the data. Work with an agent who will give you honest advice even when it's not what you want to hear. A good agent's job is to protect you from your worst impulses as much as it is to find you a home.

MISTAKE #9: Choosing the Wrong Agent - or No Agent at All

As a buyer, you do not pay your real estate agent's commission in most transactions - the seller does. Which means working with an experienced, knowledgeable buyer's agent costs you nothing and protects you in ways that are difficult to quantify until something goes wrong.

The wrong agent - or no agent at all - can cost you significantly. An agent who doesn't know Virginia contract law may miss deadlines. An agent who doesn't know the local market may let you overpay. An agent who doesn't understand your loan type may not structure offers that work for your financing. And a buyer with no agent, going directly to the listing agent, is negotiating against someone whose job is to get the best result for the seller.

In a market as specific as Hampton Roads - with its military buyer pool, VA loan prevalence, tunnel geography, and city-by-city personality differences - local expertise matters enormously. A colleague of mine shared a story about a buyer who decided he would work directly with the listing agent - the agent representing the seller - rather than getting his own representation. His thinking was that going straight to the source would give him an advantage. It is a reasonable-sounding idea. It is also completely wrong. The listing agent has a fiduciary responsibility to the seller. Their job - legally and ethically - is to get the best outcome for the person selling the home. Not for you. Trusting the listing agent to look out for your interests as a buyer is like walking into court and trusting the other side's attorney to represent you. It does not work that way. The other attorney's job is to make sure their client wins. This buyer had apparently done this before - worked exclusively with listing agents, thinking it gave him leverage or a better deal. My colleague was able to help him understand the error in that thinking and get him properly represented. He eventually got the home he wanted. But he had gone into previous transactions without anyone truly in his corner, and he had no idea what that may have cost him. As a buyer, you are entitled to your own representation. In most transactions, your agent's commission is paid by the seller - meaning proper buyer representation costs you nothing. There is no strategic advantage to working without it. There is significant risk.

THE FIX: : Work with a local agent who knows this market, understands your situation, and will give you honest guidance throughout the process. The consultation is free. The cost of working with the wrong person - or no one at all - is not.

You've Made It Through the Series

Nine blogs. Nine videos. Covering everything from the first steps of the home buying process to the mistakes that derail deals at the finish line. If you've read through this entire series, you are more prepared than the majority of buyers who walk into the Hampton Roads real estate market.

Knowledge is protection. And in real estate, protection matters.

If you're ready to take the next step - or if you just want to talk through your situation and figure out where you stand - book a free consultation. No pressure, no obligation, just a real conversation about what buying a home in Coastal Virginia looks like for you.

If you'd like help creating a personalized home buying plan for Hampton Roads, book a free consultation at coastalva.chat

You've completed the Coastal VA Estates Buyer Education Series. Ready to take the next step?

Book your free consultation at coastalva.chat

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About the Author: Marc Ian Griffin, aka Captain Real Estate, is a licensed REALTOR and Wealth Advisor with Coastal VA Estates LLC, powered by Keller Williams Town Center. A retired U.S. Navy veteran, Marc has called the Hampton Roads area home since 1992. He entered real estate in 2006 because he saw what was happening to everyday families who were losing thousands and, in many cases, losing their homes simply because they didn't have the right person guiding them through the potential real estate pitfalls - and he was determined to be that person. After a period away from the industry, he returned in 2025 with that same mission. Marc serves buyers and sellers across Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, Hampton, and Newport News.