5 First-Time Home Buyer Mistakes to Avoid in Phoenix (2026)

Buying your first home in Phoenix is exciting, but it's easy to make costly mistakes. As a licensed loan officer in Arizona, I see first-time buyers navigate this market every day. Here are the top 5 common mistakes to avoid to ensure your journey to homeownership is smooth and successful.

Mistake 1: Not Getting Pre-Approved First

Many first-time buyers start by browsing Zillow and attending open houses. The problem? Without a pre-approval, you don't know what you can actually afford. In a competitive market like Phoenix, sellers won't take an offer seriously without a pre-approval letter. Getting pre-approved is the true first step. It tells you your budget, strengthens your offer, and prevents you from falling in love with a home you can't buy.

Mistake 2: Underestimating Closing Costs

Your down payment isn't the only cash you'll need. Closing costs in Arizona typically range from 2% to 5% of the home's purchase price. This covers appraisal fees, title insurance, escrow fees, and more. Forgetting to budget for these can be a major shock right before you get the keys. Always ask your loan officer for a detailed Loan Estimate (LE) which outlines these costs.

Mistake 3: Ignoring Down Payment Assistance (DPA) Programs

So many first-time buyers in Arizona think they need 20% down. This is a myth! There are fantastic Down Payment Assistance (DPA) programs available, like the Arizona Pathway to Purchase or Home in Five. These programs provide grants or silent second mortgages to cover your down payment and closing costs. You may be able to get into a home with very little out of pocket.

Mistake 4: Skipping the Home Inspection

In a hot market, some buyers are tempted to waive the inspection to make their offer more attractive. This is extremely risky. A home inspection can uncover serious issues with the roof, foundation, electrical, or plumbing—problems that could cost you thousands. Even on a new build, an inspection is crucial. Never skip this step.

Mistake 5: Choosing the Wrong Loan Product

An FHA loan isn't your only option. A conventional loan might be better if you have a strong credit score, as you can avoid the FHA's upfront and monthly mortgage insurance. Or, if you're a veteran, a VA loan is an incredible 0% down option. Comparing loan types is essential to secure the best financial terms for your future. Talk to a broker (like me!) who can offer all these products and help you choose the right one for your specific situation.

Avoiding these common pitfalls can save you time, money, and a lot of stress. Ready to start your journey the right way? Get pre-approved today.