The Top 3 Mistakes First-Time Home Buyers Make in Fort Wayne
Buying a Home · From Moving Fort Wayne
The Top 3 Mistakes First-Time Home Buyers Make in Fort Wayne
Buying a first home is one of the biggest steps a person can take, and Tiffany Ham loves being part of it. "I just love the moment that people get those keys," she says. A former teacher, Tiffany now brings that teaching mindset to her work as a Realtor with Noll Team Real Estate, and first-time buyers are some of her favorite clients.
On this episode of Moving Fort Wayne, Tiffany and host Brad Noll lay out the three mistakes they see first-time buyers make most often, then walk through the entire buying process the way they would in a real buyer consultation. Along the way, they share stories from their own first homes, including Brad's admission that as a brand new agent with no pay stubs, it was his wife Lindsay who qualified for their first loan.
Mistake One: Shopping Before Getting Pre-Approved
Brad is blunt about this one. Do not shop for homes, and do not even start scrolling the home search portals, until you are pre-approved. Tiffany explains why: "Sometimes you have champagne taste on a beer budget." Falling in love with a home you cannot afford only sets you up for disappointment.
Pre-approval also helps buyers understand their debt-to-income ratio, which shows how much of their income goes to housing and other debts and how much is left for life. "Nobody wants to be house poor," Brad says. It can work the other way too. Some buyers learn they can afford more than they expected, and if they plan to stay in the home a long time, Brad is comfortable with them leaning toward the top of their budget because real estate builds wealth over the long haul.
Tiffany strongly encourages buyers to work with a local lender who knows the Fort Wayne area. She also tells buyers they can talk with up to three lenders without the credit checks hurting their score the way they might fear. Lenders can then explain options such as conventional, FHA, VA, and USDA loans for rural properties, along with programs for teachers, nurses, first responders, and down payment assistance.
“This is a big deal, but it's not as scary as what some of you may have in your heads.”
Tiffany Ham
Mistake Two: Underestimating the Total Cost of Ownership
"Home ownership is not for the faint of heart," Brad says. "It's for people that have an emergency fund." Going in, buyers should expect closing costs, a down payment, an appraisal, inspections, and insurance. After closing, the home needs ongoing care. Tiffany compares it to the owner of a sports car who is always out waxing it.
She recently showed a home whose owners had changed nothing since buying in 2017, with the same paint and flooring and the home in worse shape. Homes that are not maintained do not deliver the return their owners expect. Brad learned this one personally, too. When he and Lindsay bought their first home, a new construction spec home, they quickly found themselves paying for landscaping and window treatments.
Brad also explains the parts of a mortgage payment: principal, interest, taxes, and insurance, plus private mortgage insurance when a buyer puts down less than 20 percent. Some lenders allow buyers to pay PMI up front to avoid the monthly fee. He also suggests shopping for homeowners insurance during pre-approval, since rates have gone up and it affects the total monthly payment.
Mistake Three: Letting Emotions Drive the Decision
Buyers fall in love with listing photos all the time. Tiffany's question is always whether the home is functional for the buyer's life over the next few years. Is one bedroom enough? Are marriage or children on the horizon?
That is where the buyer consultation pays off. Tiffany once worked with a couple where running was a major part of the wife's life, so being close to trails mattered. When they toured homes, she could bring the conversation back to what they had said mattered most. Brad's version is a question about lifestyle: do you close the garage door and watch your shows at night, or leave it open and invite the neighbors over for a cookout?
Brad shares one more story. A couple had looked at about 20 homes, well above the 10 to 12 he says the average buyer sees, and they were getting confused. He called a timeout, took them to dinner, and asked each of them to rank their top four. They disagreed on every spot except number two. After talking through why they both liked it, number two became number one.
The Buying Process From Offer to Closing
Once a buyer is pre-approved and finds the right home, the offer stage begins. Tiffany always calls the listing agent first to learn what the seller needs. In one multiple offer situation, she learned the seller was swamped trying to clear out an outbuilding. Her buyer offered to take care of it, and they won. Brad notes the purchase agreement has almost 500 lines over eight pages and 92 checkboxes with financial implications, and buyers do not always win with the highest bid. Here are the steps after an accepted offer:
- Earnest money, usually about 1 percent of the price, which goes toward the purchase at closing.
- Inspections, typically $500 to $1,500 depending on add-ons like radon, mold, sewer, septic, or well.
- Title work to make sure there are no liens or judgments on the property.
- Survey and home warranty, if they were negotiated.
- An appraisal, which can lead to another round of negotiating if it comes in low.
- The lender's clear to close, followed by a three day window before the closing itself.
Brad's advice for every step is to think like a seller. Sellers have emotions too, and understanding what they want helps a buyer position an offer and handle inspection negotiations with more confidence.
How Much Can a First Home Really Earn?
Brad closes with the numbers. Using a median Allen County home price of $255,000 and a moderate 3 percent yearly appreciation, a home would gain about $40,000 over five years. A buyer who put 5 percent down, about $12,750, would see roughly a 318 percent return on that money. At 10 percent down the return is about 159 percent, and at 20 percent down it is about 80 percent. He compares that to the six to ten percent range most financial advisors cite for the stock market.
Homeownership also brings tax benefits, leverage, stability, and freedom. Tiffany's favorite example is a first-time buyer, an artist, who painted her whole home and sent pictures. Brad is careful not to shame renting. It makes sense for short stays, unstable finances, or credit repair. But for buyers with three to six months of expenses saved, he believes owning is the stronger path. Tiffany's final word is simple: work with someone you trust, and know that it is absolutely possible to own a home here in Indiana.
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Top 3 Mistakes First-Time Home Buyers Make, on Moving Fort Wayne.
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