CIS Home Loans Blog

10 First-Time Home Buyer Mistakes To Avoid

Thu, 30 Oct 2025 22:08:12 GMT

Are you buying a home for the first time and stressed out about the entire process? Fear not. You are not alone.

Many first-time homebuyers face challenges that cost them money or lead to a disappointing purchase. The jargon can be difficult to navigate, the financials, and the home buying process as a whole.

We want to help you avoid these mistakes. Here are 10 mistakes first-time homebuyers make and how to avoid them:

1. Shopping for Homes Before Understanding What You Can Afford

Many first-time homebuyers get wrapped up in the idea of buying a home and start shopping before understanding their financial situation. This hype sometimes results in first-timers finding a home they love, but they can’t afford it. Then they either find a way to buy that home that they can’t afford or spoil every other home viewing for themselves after they find out what’s in their price range. It taints the home-buying experience.

Avoid this mistake by calculating what you can afford BEFORE you begin house shopping.

After you understand your price range, then you can get to shopping!

2. Collecting a Mortgage Rate Quote from One Single Lender

Getting a mortgage is a more tedious job than most homebuyers think. To get a quote from a lender, you have to provide a lot of documentation and take the time to speak to a loan officer. It’s tedious and daunting—so many first-time homebuyers end up settling with the first lender who offers them a quote.

But you wouldn’t only look at one home before deciding to purchase, right? So why get a quote from only one lender? Getting multiple quotes is the way to go. Freddie Mac says getting a quote from just one additional lender could save you an average of $1,500 over the life of a loan, and a quote from five different lenders, on average, doubles the savings.

Avoid this mistake by doing your research on lenders and getting multiple quotes. You want to feel confident that you’re getting a good deal and working with a reputable loan officer that fits well with you.

3. Buying the Most House Your Lender Says You Can Afford

When first-time homebuyers see how much of a loan they’re approved for, sometimes they conclude that it’s the same amount for which they can buy a house. It can seem logical, given that a lender has reviewed their income, assets, and financial situation to come up with the amount of money you were approved for.

However, what the lender says you can afford can be very different from what best fits your lifestyle. A lender doesn’t look at your monthly expenses outside of your debt-to-income ratio. They don’t know how a future monthly mortgage payment will impact the rest of your monthly costs. These include but are not limited to entertainment expenses, child upbringing expenses, cell phones, etc.

So if you end up buying the most house you can afford and borrow the most you’re approved to borrow, you’ll also end up owing more and taking longer to pay it back. That’s money you’re taking away from savings, emergency funds, or retirement funds.

To avoid this mistake, use the amount of money you’re prequalified for as an upper limit for what you can spend. Then, list out all your monthly expenses—including costs unique to homeowners such as water, garbage pickup, and recycling pickup—and subtract your total expenses from your monthly income. What’s leftover can help you determine what you can comfortably live on, and that can help you also. determine your lower limit. Having this range to work within can help you borrow the right amount of money for your financial situation.

4. Not Looking Into First-Time Home Buyer Loan Programs & Grants

Many first-time homebuyers either don’t know about the loan programs and grants available to first-time homebuyers or don’t think they qualify. But these programs and grants are designed to make owning a home more possible for the American people.

Avoid missing out by learning about the first-time homebuyer programs and grants offered by your city and state. Look into the federal programs, such as the Good Neighbor Next Door program, Fannie Mae’s HomeReady program, and Freddie Mac’s Home Possible and HomeOne℠ programs. But note that some lenders will not offer to finance for homes purchased through some of these programs.

5. Not Looking Into Non-Conventional Loans

Many first-time homebuyers will go after conventional loans because they’re the most well-known. But what first-timers often forget about are the loan options offered by the Federal Housing Administration, the United States Department of Agriculture, and the Department of Veterans Affairs.

Avoid missing out on the potential benefits of these loans, such as no down payment, no mortgage insurance, lower credit score requirements, and the ability to roll closing costs into the loan. Learn more about these loans and compare them to your research on conventional loans.

6. Making a Small Down Payment on the House

Because a down payment is often several thousand dollars due at closing, it can feel like a huge financial hit. So many first-timers opt for a smaller down payment to feel like they’re saving money. But it is a costly mistake because the less money you put down, the more you’ll have to borrow from your lender and pay interest. Any down payment less than 20% will also require private mortgage insurance payment each month.

Avoid paying more later on by aiming to have 20% of your ideal home purchase price saved up before deciding to purchase so you can avoid paying PMI. The more of a down payment you put down now, the more equity you’ll start with and less you’ll have to borrow.

7. Skipping a Home Inspection

A home inspection may not be required to get a mortgage, so some people decide not to get one. It’s an added cost, after all. But by skipping out on a home inspection before purchasing a home, a new home buyer may miss out on structural issues that could cause you to pay thousands in repairs—especially if they’re not up to code.

To avoid the risk that comes with buying a home that hasn’t gone through an inspection, simply get a home inspection done.

8. Forgetting About Moving Costs

There’s the price of the home, the down payment, closing costs, and your future mortgage payments. What’s often forgotten, though, by first-timers are the moving costs. You don’t want to be surprised by this cost and have it be an unexpected expense.

Avoid this mistake by planning for the cost of moving in your budget. Do your research on moving companies and ask for referrals from family and friends. Make sure you look into the cost of renting a truck and shop around. Consider moving on a weekday when there is less demand for moving vehicles.

9. Holding Out for the Perfect Home

Buying a home is a huge decision and commitment. Some first-time homebuyers will resist committing to a home during the shopping process while waiting for the perfect home to come along. But if you wait too long, home prices could rise, you could pay more interest rates, and you’re just prolonging the process. You could also be passing up ideally priced homes in a great location.

Avoid this mistake by making a list of your must-haves in a house. For example:

Number of rooms
Square footage
Location
Type of windows
Structural health
Type of appliances

You can also consider the features that would be nice to have and features that you’re willing to compromise on. It’s not about the perfect home—it’s about being able to create the life you want in a place you’d be happy living in.

10. Applying for Credit Before Closing

When the offer is accepted, it’s an exhilarating moment for first-time homebuyers. It’s huge! And it motivates first-timers to think about furniture, appliances, and decorations to buy. Some of those buyers may decide to apply for new lines of credit before closing on a house. But doing this can affect their chances of getting the loan needed to close on the home.

Lenders check your credit score during the preapproval process but also just before closing day. If there’s a significant drop in your score before closing, it may disqualify you from the loan. Applying for new credit lines puts hard inquiries on your credit report, lowers your average credit age. If you spend money on the credit card, it increases utilization—all of which negatively affect your score.

Avoid losing out on your loan before closing by waiting until after you close to open new credit lines. In general, try not to make any significant changes to your finances during the home-buying process.

Get Help Buying Your First Home with CIS Home Loans

First-time home buying is a complex process, and there are many potential missteps that could be made along the way. But for those who are prepared and come equipped with the knowledge to avoid mistakes in the first-time home-buying process, mistakes are much easier to avoid.

CIS Home Loans experts can help you find the right mortgage for you and help get you started on your home-buying journey. We are a full-service mortgage bank and have served homeowners since 1991. Call us today at 800-844-4845 or visit our contact page to get in touch with our team.

Top 5 Benefits of Choosing a Manufactured Home

Tue, 27 May 2025 05:00:00 GMT

Manufactured homes have come a long way in recent decades. Once seen as a temporary housing option, today’s factory-built homes offer high-quality, affordable, and customizable living without sacrificing comfort. Whether you’re a first-time homebuyer, downsizing for retirement, or looking for a wise investment, this type of housing can provide a practical path to ownership.

Let’s break down five key benefits of choosing a manufactured home.

Affordability Without Compromising Quality

One of the biggest reasons people choose manufactured homes is the price. On average, these properties cost significantly less per square foot than traditional site-built homes1. That makes them an excellent choice for buyers seeking more space and comfort while keeping monthly payments manageable.

Lower material and labor costs
Factory-controlled construction environment reduces waste and delays
Energy-efficient designs keep utility bills low

These homes are built under the HUD Code, establishing federal construction and safety standards for durability, fire resistance, plumbing, heating, and electrical systems2. You’re not cutting corners, you’re cutting costs the smart way.

Fast, Efficient Construction Timeline

Unlike site-built homes, which are subject to weather delays and long contractor wait times, manufactured homes are built in a factory and delivered to your site. This controlled environment speeds up the process from start to finish. Compared to seven months or more for site-built homes, the average manufactured home takes two to three months to complete3.

Once the structure is delivered and installed on your property, setup can take a few days depending on site conditions. If you’re ready to move quickly, this approach offers a reliable path to occupancy without the long wait.

Customization Options for Every Lifestyle

Modern manufactured homes are anything but cookie-cutter. Buyers can choose from various floor plans, finishes, and features to match their lifestyle and budget4. Want a kitchen island, walk-in closet, or an open layout? Many builders offer those configurations and more.

You can also choose between single-section or multi-section layouts5. Today’s models are crafted for comfort and style, offering features rivaling traditional residences in function and design.

Flexible Placement Options

Manufactured homes can be placed on private land, in a land-lease community, or even in a planned development. That flexibility gives buyers more control over where and how they want to live.

If you own land, you can install your home on a permanent foundation and convert it to real property6. A manufactured home park may be right if you prefer community amenities and simplified upkeep. The key is choice, and this type of housing offers plenty of it.

Manufactured homes are the most common form of unsubsidized affordable housing in the U.S., especially in rural communities7.

Energy Efficiency and Lower Utility Costs

Modern factory-built homes are built with energy savings in mind. Many come equipped with energy-efficient appliances, tight insulation, and high-performance windows8. These upgrades reduce heating and cooling costs while improving indoor comfort.

Homes that meet the Energy Star® certification requirements use significantly less energy than standard models9. Over time, those savings can make a big difference in your household budget and reduce your environmental footprint.

Common Questions About Manufactured Homes

Can I build equity in a manufactured home?

Yes, especially if the home is affixed to land and titled as real property. Like site-built homes, manufactured homes can appreciate in value depending on location, upkeep, and market conditions10.

Are manufactured homes safe in severe weather?

Modern manufactured homes built after 1994 are designed to meet enhanced wind resistance standards, especially in areas prone to hurricanes or high winds11.

Do I pay property taxes on a manufactured home?

If the home is classified as real property and affixed to land you own, you’ll typically pay property taxes like any other homeowner12.

Is a Manufactured Home Right for You?

Manufactured homes offer an affordable, flexible, and modern approach to homeownership. With benefits like lower costs, quick construction, customization, and financing flexibility, it’s no surprise that more Americans are choosing this path.

Still have questions?

We’re happy to walk you through your options.

Reach out to CIS Home Loans today to learn more about financing your manufactured home with confidence.

Final Thoughts

Manufactured homes provide affordability, flexibility, and a clear path to homeownership. You can customize your layout, explore financing options, and confidently move forward. CIS Home Loans is here to guide you through every step of the process.

Sources

How to Improve Your Credit Score Before Applying for a Chattel Loan

Thu, 15 May 2025 05:00:00 GMT

If you’re planning to buy a manufactured home and are considering a chattel loan, your credit score matters. A higher score can help you qualify for better rates, lower payments, and a smoother loan process. Fortunately, there are clear steps you can take to raise your rating before applying.

Improving your credit standing isn’t complicated, but it does take consistency, patience, and the right strategy. This guide covers how credit affects chattel loans and what actions can help strengthen your profile.

What Is a Chattel Loan?

A chattel loan is financing used to purchase movable personal property. For manufactured homes, it applies when the home is not permanently affixed to land or is placed in a land-lease community1. Because the home is treated as personal property, loan providers rely more heavily on your credit score to assess risk2.

Why Your Credit Score Matters

Chattel loans often have shorter terms and higher interest rates than traditional mortgages. A strong credit score can help reduce these costs and give you access to:

Lower interest rates
Lower down payment requirements
Faster approvals
Better loan terms

With manufactured housing, financing options can be more limited than site-built homes, making your financial profile one of the most essential parts of the application. Lenders use your record to evaluate how reliably you manage credit. A higher score signals greater responsibility and stability.

Check Your Credit Report for Errors

Start by reviewing your reports from Equifax, Experian, and TransUnion. You can access them for free once a year at AnnualCreditReport.com3.

Look for issues such as:

Incorrect balances
Outdated personal information
Accounts that don’t belong to you
On-time payments marked late

Dispute any errors with the reporting bureau. Fixing even a single issue may improve your rating[4]. You can submit disputes online, by mail, or over the phone. Most are resolved within 30 to 45 days.

Pay Down Credit Card Balances

Your utilization ratio is the amount of credit you use compared to your limit. Aim to keep it below 30 percent5.

If your limit is $1,000, try to keep your balance under $300. Reducing your revolving debt shows lenders you’re using your accounts wisely and staying within your means.

Make Every Payment On Time

Payment history makes up 35 percent of your FICO score6. Even one missed bill can damage your score and stay on your report for years. Use reminders or set up automatic payments to avoid missing due dates.

If your history includes missed payments, consistent on-time activity moving forward will gradually improve your standing. Timely bill management builds trust with lenders and shows you’re ready for long-term financial commitments like a home loan.

Avoid New Credit Applications

Lenders perform a hard inquiry each time you apply for new credit. These checks can lower your score slightly and reduce the average age of your accounts7. Avoid new credit cards or loans during the months leading up to your chattel loan application.

Focus on managing your current lines of credit instead of adding new ones.

Become an Authorized User

If someone you trust has a well-managed credit card, ask if they’ll add you as an authorized user[8]. You don’t need to use the card, their payment history and credit behavior will appear on your report, helping to boost your score if they pay on time and keep a low balance.

This method can be especially helpful for younger borrowers or those working to rebuild credit after a setback.

Use Rent or Utility Payments to Build History

Services like Experian Boost and Rental Kharma let you report rent, phone, and utility payments to credit bureaus. If you have limited credit history, this can help strengthen your score over time[9].

The impact may be smaller than traditional credit use, but every positive data point counts for thin profiles.

Don’t Close Old Accounts

Closing a credit card might seem like a good idea, but doing so lowers your total available credit and shortens your history, which can hurt your score[10].

Keep older accounts open unless there are high fees or security concerns. Long-standing accounts reflect responsible credit use and contribute to a stronger profile.

How Long Should You Work on Your Score Before Applying?

If your rating needs improvement, give yourself at least three to six months before applying for a chattel loan[11]. This allows time for disputes to process, balances to drop, and new positive activity to reflect on your report.

Final Thoughts

A higher credit score can lead to better rates and loan terms for your manufactured home. Improving your financial profile takes time, but the long-term savings and peace of mind are worth it. When you’re ready to apply, CIS Home Loans will help you take the next step.

Sources

CIS Home Loans Blog

10 First-Time Home Buyer Mistakes To Avoid

1. Shopping for Homes Before Understanding What You Can Afford

2. Collecting a Mortgage Rate Quote from One Single Lender

3. Buying the Most House Your Lender Says You Can Afford

4. Not Looking Into First-Time Home Buyer Loan Programs & Grants

5. Not Looking Into Non-Conventional Loans

6. Making a Small Down Payment on the House

7. Skipping a Home Inspection

8. Forgetting About Moving Costs

9. Holding Out for the Perfect Home

10. Applying for Credit Before Closing

Get Help Buying Your First Home with CIS Home Loans

Top 5 Benefits of Choosing a Manufactured Home

Affordability Without Compromising Quality

Fast, Efficient Construction Timeline

Customization Options for Every Lifestyle

More on Customization Options

Flexible Placement Options

Energy Efficiency and Lower Utility Costs

Common Questions About Manufactured Homes

Can I build equity in a manufactured home?

Are manufactured homes safe in severe weather?

Do I pay property taxes on a manufactured home?

Is a Manufactured Home Right for You?

Still have questions?

Final Thoughts

Sources

How to Improve Your Credit Score Before Applying for a Chattel Loan

What Is a Chattel Loan?

Why Your Credit Score Matters

Check Your Credit Report for Errors

Pay Down Credit Card Balances

Make Every Payment On Time

Avoid New Credit Applications

Become an Authorized User

Use Rent or Utility Payments to Build History

Don’t Close Old Accounts

How Long Should You Work on Your Score Before Applying?

Final Thoughts