Mortgage Blog

Common Mistakes First-Time Home Buyers Make

July 28, 2026 | Posted by: Jack Shotbolt

Buying your first house is exciting. It's also easy to trip over a few early decisions that end up costing you real money down the road. A lot of new buyers jump straight into house hunting without ever looking into Nebraska first time home buyer assistance programs, and that alone can mean leaving thousands of dollars on the table. Before you start scheduling showings, it helps to know where buyers usually stumble, and how a lender who actually knows this market, like Shotbolt Mortgage, can help you sidestep those problems.

Mistake #1: Waiting Too Long to Look Into Assistance Programs

Here's a common assumption: you need a massive down payment saved up before homeownership is even on the table. That's just not true in Nebraska. The state offers several down payment and closing cost assistance options through NIFA, plus city-specific programs in Lincoln and Omaha. If you skip this research, you're essentially walking away from money that's sitting there for you to use. A lender who knows these programs well can explain what you qualify for and help you get the paperwork moving before you ever set foot in an open house.

Mistake #2: Dismissing FHA Loans Without Comparing Them

There's a persistent myth that you need 20% down to buy a home. In reality, FHA loans available to Nebraska buyers let you put down as little as 3.5%, which makes ownership realistic even if your savings are modest. The credit requirements tend to be more forgiving too. Buyers who write off FHA loans without ever running the numbers against a conventional mortgage frequently end up overpaying, or worse, missing out on financing they would have easily qualified for.

This isn't just a Nebraska problem, either. Housing affordability has gotten tighter across the country. Data from the Nebraska State Treasurer's Office shows that only 21% of U.S. homes sold between July 2024 and June 2025 went to first-time buyers, the lowest share on record, and the average age of a first-time buyer has crept up to 40, a full decade older than it was back in 2010. That trend alone is a good reason to start planning early and use every assistance option available to you.

Mistake #3: Forgetting About Closing Costs

Buyers tend to fixate on the down payment and forget that closing costs are their own separate expense, usually somewhere between 2% and 5% of the purchase price. Then there's inspection fees, appraisal costs, and moving expenses on top of that. Add it all up, and the total cash you need at closing can catch a first-timer completely off guard. Ask your lender for a detailed, itemized estimate early on so you're not scrambling for extra funds right before closing day.

Mistake #4: House Hunting Before Getting Pre-Approved

Touring homes before you've even talked to a lender puts you at a real disadvantage, especially in a competitive market. Pre-approval does two things: it tells you exactly what you can actually afford, and it signals to sellers that you're a serious, ready buyer. It also gives you breathing room to fix any credit issues or missing documents before a contract deadline is bearing down on you. Getting pre-approved through Shotbolt Mortgage means you'll know your true budget, including whether you qualify for any assistance programs, before you fall for a house that's out of reach.

Mistake #5: Not Checking How Credit Affects Your Rate

A lower credit score won't necessarily keep you out of a home, but it can absolutely affect your interest rate and monthly payment. A lot of first-time buyers never pull their credit report early enough to catch errors or pay down balances that would nudge their score up. Even a small improvement before you apply can save you thousands over the life of the loan.

How the Right Program Changes Your Timeline

Buyers who take the time to look into Nebraska first-time home buyer assistance, weigh FHA loans against conventional financing, and get pre-approved early tend to close faster with far fewer surprises along the way. Working with a lender who deals with first-time buyers across the state regularly means you get guidance suited to your actual situation, not a generic product pushed on everyone who walks through the door.

Related Article:

FHA vs Conventional Loans for First-Time Buyers 

How Mortgage Pre-Approval Works for New Buyers 

Down Payment Options for First-Time Home Buyers 

How Mortgage Pre-Approval Works for New Buyers

Key Takeaways

1. Look into down payment and closing cost assistance programs before you start house hunting.

2. Compare FHA loans against conventional financing instead of assuming you need 20% down.

3. Budget for closing costs as a separate expense from your down payment.

4. Get pre-approved before touring homes so you know your real budget.

5. Pull your credit report early to catch errors and improve your rate.

Final Thoughts

Most of these mistakes come down to the same thing: not getting the right guidance early enough. Whether it is deciding on an FHA loan or conventional loan, or determining which Nebraska first-time buyer program can fit into your budget, consulting with a seasoned lender can save time, money, and avoid unnecessary angst. Shotbolt Mortgage helps first-time buyers in Nebraska get through each step of the process, from the first pre-approved meeting to the day of closing.

Frequently Asked Questions

1. What counts as a first-time home buyer in Nebraska?

Nebraska generally uses HUD's definition here: if you haven't owned a primary residence in the past three years, you qualify as a first-time buyer.

2. How much do I need to put down for an FHA loan in Nebraska?

You may be required to pay as low as 3.5% of the buying price of the house.

3. What down payment assistance programs are available in Nebraska?

Currently, there is NIFA's Homebuyer Assistance Program as well as other programs in Omaha and Lincoln that assist in down payments.

4. Can down payment assistance be combined with an FHA loan?

Yes. It is common for buyers to combine first-time home buyer assistance from Nebraska together with the FHA loan.

5. How far ahead of house hunting should I get pre-approved?

It is better to get pre-approved for a house purchase about 60-90 days before looking for a house to buy.

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