But while the excitement is real, so are the potential pitfalls — especially if you're a first-time buyer. Here are five of the most common mistakes new buyers make in Memphis — and how to avoid them so your home buying journey starts off on the right foot.
1. House Hunting Without a Mortgage Pre-Approval
It’s easy to get excited and start touring homes right away — but if you haven’t been pre-approved for a mortgage, you could be setting yourself up for disappointment.
Why it matters:
Pre-approval shows sellers you’re financially serious and ready to make a legitimate offer. In a competitive Memphis housing market, that letter can set you apart.
Smart tip:
Shop around with multiple lenders. Many offer first-time buyer programs, and some include down payment assistance or lower interest rates through local or state programs.
2. Forgetting About Closing Costs and Extra Fees
Most buyers focus on saving for the down payment — but that’s not the only cost to consider.
Typical closing costs in Memphis range from 2% to 5% of the purchase price and may include:
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Title insurance
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Home appraisal
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Home inspection
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Property taxes
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Escrow or attorney fees
Pro tip:
Always factor in these additional expenses when setting your budget to avoid last-minute surprises.
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