TL;DR – The Top Mistakes First-Time Buyers Make in Lincoln, CA
Buying your first home in Lincoln, CA? Avoid common mortgage missteps like skipping pre-approval, misunderstanding loan options, or forgetting closing costs. This guide walks you through the top 10 mistakes and how to steer clear of them.
Mistake #1: Skipping Pre-Approval Before House Hunting
Why it’s risky: You might fall in love with a home you can’t afford.
What to do instead: Get pre-approved through a trusted local lender like Fairway Lincoln. It strengthens your offer and gives you a real sense of your budget.
Mistake #2: Underestimating Closing Costs
Why it matters: Many buyers budget only for the down payment.
The fix: Expect to pay 2% to 5% of the purchase price in closing costs. Use our closing cost guide to prepare properly.
Mistake #3: Making Big Purchases During Escrow
Why it’s a problem: Your credit is monitored through closing.
Avoid this: Hold off on buying furniture, cars, or applying for new credit cards until the deal is finalized. It could derail your mortgage approval.
Mistake #4: Not Understanding Loan Options (FHA, VA, Conventional)
Why it matters: The right loan could save you thousands.
Better approach: Compare options like FHA, VA, USDA, and conventional mortgages.
Mistake #5: Ignoring Your Credit Score and Report
Why it’s key: Lower scores mean higher rates or denial.
Pro tip: Pull your report early. Dispute errors, pay down credit card balances, and don’t open new accounts during the buying process.
Check credit reports for free at AnnualCreditReport.com
Mistake #6: Choosing the Wrong Mortgage Lender
Why it matters: Not all lenders offer the same service, speed, or programs.
What to look for: Local market knowledge, fast pre-approvals, and experience with assistance programs. Fairway Independent Mortgage in Lincoln checks all the boxes.
Mistake #7: Overextending Your Budget Based on Pre-Approval
Common issue: Being approved for $600K doesn’t mean you should spend it.
Stay grounded: Create a personal budget based on monthly affordability, not the maximum number a lender gives you.
Mistake #8: Forgetting About Property Taxes and Insurance
Why it stings: These can add hundreds to your monthly payment.
Your move: Use an all-in monthly estimate (PITI: principal, interest, taxes, insurance) to calculate true affordability.
Mistake #9: Skipping the Home Inspection
Why it’s risky: You might miss costly issues.
Best practice: Always hire a licensed home inspector. The $400–$600 fee is worth the insight and negotiation leverage.
Mistake #10: Not Asking About Local Assistance Programs
Why it’s a missed opportunity: You could leave free money on the table.
Lincoln tip: Placer County offers generous programs like:
- Assist-to-Own (for county employees)
- Placer County FTHB Program
- CalHFA MyHome + ZIP
- Dream For All (when funded)
Explore your options with a local expert
Final Thoughts: How to Avoid These Pitfalls and Buy with Confidence
Homebuying is exciting, but small missteps can cost big money. With the right guidance from trusted professionals in Lincoln and a clear understanding of the process, you can avoid these common errors and move confidently into your first home.
Need help navigating your first mortgage? Schedule a consult with Fairway Lincoln
