What I Wish I Knew Before Buying My First Home: A Mortgage Story

When I bought my first home, I felt like I was stepping into a world filled with confusing terminology, urgent deadlines, and a lot of numbers I didn’t fully understand.

I wasn’t reckless—I’d done the research, checked my credit, and even used a mortgage calculator online. But no amount of Googling could’ve prepared me for the real-life experience of applying for a mortgage.

So, in the spirit of paying it forward, I want to share what I learned—not just as a checklist, but as a story. Because chances are, if you’re a first-time buyer, you might be feeling a lot like I did: excited, unsure, and just hoping you're making the right decisions.

Lesson 1: Your Credit Score Tells a Story, Not Just a Number

When my lender pulled my credit report, I expected a quick thumbs up or down. What I didn’t realize is that your credit history is like a financial resume.

My score was decent—but I had a few credit cards with high balances (even though I paid on time), and that raised some eyebrows. My loan officer explained that high utilization—even without missed payments—can lower your score and impact your rate.

If I could go back, I’d have paid those cards down before applying. It’s a small move that could’ve saved me thousands over the life of the loan.

What you can do:
Check your credit 3–6 months before applying. Pay down revolving debt, fix any errors, and avoid new credit lines. Mortgage lenders care about the story your report tells, not just the score itself.

Lesson 2: Pre-Approval Feels a Lot Like a Job Interview

Getting pre-approved wasn’t hard—but it was definitely more involved than I expected.

I had to submit:

• Two years of tax returns

• Pay stubs

• Bank statements

• Proof of funds for the down payment

• My ID and Social Security number

I remember thinking, “Why do they need all this?” But when you realize a bank is about to lend you hundreds of thousands of dollars, it starts to make sense.

What you can do:
Gather your documents early. You’ll feel more confident, and the process will move faster. Keep in mind that pre-approval isn’t the final decision—it’s more like a “strong maybe” based on what you’ve provided so far.

Lesson 3: You Don’t Need 20% Down (But You Do Need Something)

Like many people, I thought I needed 20% down to buy a home. And for a while, that kept me stuck renting.

When I finally talked to a loan officer, I learned there are conventional loans that require just 3–5% down, and even FHA loans that allow 3.5% down with more flexible credit requirements.

I ended up using a 5% down conventional loan. It wasn’t free—there was mortgage insurance—but it got me in the door. And that was worth it.

What you can do:
Don’t assume you’re disqualified based on what you think you need. Talk to a professional and learn what options are available for your situation. You might be closer than you think.

Lesson 4: Your Monthly Payment Is More Than Just the Mortgage

When I first saw the estimate of my monthly mortgage payment, I felt relieved. “That’s not much more than my rent,” I thought.

Then I learned about the extras:

• Property taxes

• Homeowners insurance

• Mortgage insurance

• HOA fees (if applicable)

• Maintenance and repairs

Suddenly, that $1,600 monthly payment turned into closer to $2,000 when all was said and done. It was still affordable—but just barely.

What you can do:
Ask your lender for an “all-in” estimate, not just principal and interest. And don’t forget to build a buffer for repairs—because something will eventually break.

Lesson 5: Don’t Make Big Financial Moves Before Closing

Right after getting pre-approved, I made what I thought was a harmless purchase—a new couch for my soon-to-be living room. I put it on a credit card and figured I’d pay it off after the move.

Bad idea.

My lender ran a final credit check before closing, saw the new balance, and flagged it. It didn’t derail my approval, but it delayed the process and gave me a healthy dose of anxiety.

What you can do:
Once you’re pre-approved, pause all big financial changes. Don’t open new accounts, finance large purchases, or quit your job. Keep your finances as steady as possible until after you have the keys in hand.

Lesson 6: Don’t Be Afraid to Ask Questions

Throughout the process, I hesitated to speak up when I didn’t understand something. I didn’t want to sound clueless.

Now I realize that a good loan officer—or real estate agent—will welcome your questions. You’re not supposed to know everything. That’s why professionals exist.

Looking back, I wish I’d asked:

• What’s the difference between pre-qualification and pre-approval?

• How does mortgage insurance work, and when can I remove it?

• Should I consider buying points to lower my interest rate?

What you can do:
Be curious. Ask. Get second opinions if needed. This is your loan, your home, your money. You deserve to understand every part of the journey.

Final Thoughts: It’s Not About Knowing Everything—It’s About Being Prepared

No one walks into the mortgage process knowing it all. And while there were bumps along the way, buying my first home was one of the best decisions I’ve made.

The experience taught me to be more thoughtful with money, more confident in asking questions, and more strategic in how I plan for the future.

If you’re just getting started, remember: the goal isn’t perfection—it’s progress. Learn as you go, ask for help, and keep moving forward. The reward at the end—a place to truly call your own—is worth every step.