10 Mortgage Mistakes to Avoid When Buying Your First Home

Buying your first home is one of the most exciting milestones of your life — but it can also be one of the most stressful. The mortgage process involves dozens of moving parts, and even small missteps can cost you thousands of dollars or cause your loan to fall through entirely. Along the Wasatch Front, where the housing market remains competitive, being prepared is more important than ever.

We've helped hundreds of first-time buyers navigate the process at Vivanco Mortgage Team, and we've seen the same mistakes come up again and again. Here are the 10 most common mortgage mistakes — and how to avoid them.

1. Not Checking Your Credit Report Early

Your credit score is the single biggest factor in determining your mortgage rate and what programs you qualify for. Yet many first-time buyers don't pull their credit report until they're ready to apply — and that's when they discover errors, old collections, or identity theft issues that can take months to resolve. In Utah, we see this frequently with buyers who have thin credit files or shared names.

The fix: Pull your free credit report from AnnualCreditReport.com at least 6 months before you plan to buy. Dispute any errors immediately — the bureaus have 30 days to investigate, but complex disputes can drag on much longer.

2. Skipping Mortgage Pre-Approval

In Utah's competitive market — especially in areas like Lehi, Draper, and South Jordan — sellers receive multiple offers within days of listing. Without a pre-approval letter in hand, your offer will likely be pushed to the bottom of the pile, or ignored entirely. A pre-approval shows sellers you're serious and financially qualified.

The fix: Get pre-approved before you start house hunting. At Vivanco Mortgage Team, we can issue a pre-approval letter in as little as 24 hours, giving you the confidence to make strong offers the moment you find the right home.

3. Changing Jobs During the Mortgage Process

This is one of the most common — and most devastating — mistakes we see. Underwriters need to verify stable, consistent income. If you switch jobs, go from salaried to self-employed, or even change roles within the same company, it can delay or derail your entire loan. Lenders typically want to see at least two years of steady employment history.

The fix: If possible, wait until after closing to make any career changes. If a job change is unavoidable, talk to your loan officer immediately — staying in the same industry and at the same or higher pay can sometimes work, but your lender needs to know.

4. Opening New Credit Lines Before Closing

It's tempting — you're about to move into a new home and you want to furnish it, so you open a credit card at the furniture store. Or you finance a new car because you'll need a bigger vehicle. Every new credit inquiry and account lowers your credit score and increases your debt-to-income ratio (DTI). We've seen buyers lose their loan approval just days before closing because of a new credit card.

The fix: Do not open any new credit accounts, co-sign for anyone, or make large purchases on credit from the moment you apply for a mortgage until after you close. If in doubt, ask your loan officer first.

5. Waiving the Home Inspection

In a competitive market, some buyers waive the home inspection to make their offer more attractive. While this strategy might win you the house, it could cost you tens of thousands of dollars in hidden repairs. In Utah, common issues include foundation problems from expansive clay soils, aging water heaters in older Wasatch Front homes, and radon — which is prevalent in many parts of the Salt Lake Valley.

The fix: Always get a home inspection. If you're worried about competitiveness, consider an inspection for informational purposes only — you still learn about the home's condition without giving yourself an easy out that scares sellers.

6. Not Comparing Lenders

Many first-time buyers go with the first lender they talk to — often their own bank or a name they recognize from an ad. But mortgage rates, closing costs, and lender fees can vary significantly from one company to the next. Even a 0.25% difference in your interest rate can mean tens of thousands of dollars over the life of a 30-year loan. Some lenders also charge higher origination fees or points that inflate your upfront costs.

The fix: Get quotes from at least 2-3 lenders and compare their Loan Estimates side by side. Pay attention to the APR (which includes fees), not just the advertised rate. At Vivanco Mortgage Team, we're transparent about every cost — no hidden fees or surprises at closing.

7. Ignoring Closing Costs

First-time buyers often focus entirely on saving for the down payment and forget about closing costs — which in Utah typically range from 2% to 5% of the purchase price. On a $400,000 home, that's $8,000 to $20,000 in addition to your down payment. Closing costs include appraisal fees, title insurance, escrow fees, lender charges, prepaid taxes, and homeowner's insurance.

The fix: Budget for closing costs from the very beginning. Ask your lender for a detailed Loan Estimate early in the process. In some cases, you may be able to negotiate seller concessions to cover part of your closing costs, or roll them into the loan amount.

8. Draining All Your Savings for the Down Payment

Putting 20% down to avoid private mortgage insurance (PMI) is a popular goal, but emptying your savings account to get there is dangerous. Life doesn't stop when you buy a house — you'll need reserves for emergency repairs, unexpected medical bills, or a temporary income disruption. Many lenders also require you to have 2-3 months of mortgage payments in reserves after closing.

The fix: Consider putting less down and keeping a healthy emergency fund. FHA loans allow as little as 3.5% down, and Utah's down payment assistance programs — such as the UHC FirstHome Loan and the Utah Housing DPA grant — can help cover the rest. A smaller down payment with reserves is often smarter than a large down payment with nothing left over.

9. Not Considering Future Needs

It's easy to fall in love with a home that fits your life right now. But what about two or five years from now? A cozy one-bedroom condo might work for a single buyer, but if you're planning to start a family, you could outgrow it quickly. Similarly, a home with a 45-minute commute might seem fine today, but could become unbearable if you change jobs or start a family. In the Salt Lake Valley, commute times can vary dramatically depending on whether you're in Lehi, Murray, or downtown SLC.

The fix: Think about where you'll be in 3-5 years. Consider the number of bedrooms, yard space, school districts, HOA rules, and proximity to work. It's cheaper to buy the right home once than to sell and buy again in two years — especially when you factor in closing costs on both transactions.

10. Forgetting About Property Taxes and Insurance

Your monthly mortgage payment isn't just principal and interest. It also includes property taxes and homeowner's insurance — collectively known as your PITI payment (Principal, Interest, Taxes, Insurance). Many first-time buyers use a basic mortgage calculator, see a monthly number they can afford, and forget that taxes and insurance can add hundreds of dollars per month. In Utah, property tax rates vary by county — Salt Lake County averages around 0.67%, while Utah County is closer to 0.55%. Homeowner's insurance can range from $800 to $2,000+ per year depending on the home's age, location, and coverage level.

The fix: Always calculate your full PITI payment, not just principal and interest. Ask your lender to include estimated taxes and insurance in your pre-approval calculation. If you're buying in a neighborhood with an HOA, factor those monthly dues in as well — some HOA fees along the Wasatch Front can run $200-$400/month.

Set Yourself Up for Success

The mortgage process doesn't have to be overwhelming. By avoiding these 10 common mistakes, you'll save money, reduce stress, and put yourself in the strongest position possible to buy your first home. The key is preparation — start early, ask questions, and work with a lender who takes the time to educate you, not just sell you a loan.

At Vivanco Mortgage Team, our bilingual team specializes in helping first-time buyers along the Wasatch Front. We'll walk you through every step, connect you with Utah's best down payment assistance programs, and close your loan in as little as 14 days. Whether you're buying in West Valley City, Sandy, Provo, or anywhere in between — we're here to help you do it right.