By Garrett Odell · August 28, 2026
Buying your first home is exciting, but it can also be overwhelming.
There are financing decisions, inspections, contracts, deadlines, negotiations and dozens of smaller decisions between getting pre-approved and receiving the keys.
And if you’re buying in North Carolina, there are some parts of the process that are especially important to understand.
At Odell Realty, we regularly work with first-time buyers throughout Charlotte, South Charlotte, Davidson, Cornelius, Huntersville, Mooresville, Denver, Concord, Kannapolis, Harrisburg and University City. We also help buyers throughout Oklahoma, including Tulsa, Owasso, Claremore, Oologah and Bartlesville.
While every transaction is different, many of the same mistakes come up again and again.
Here are the ones we think first-time buyers should know before they start shopping.
1. Looking at Houses Before Understanding Your Budget
One of the most common mistakes is starting with the houses instead of the numbers.
It’s easy to get excited about a $500,000 home when you haven’t yet determined what a $500,000 purchase would actually cost you each month.
Before you start touring homes, talk with a lender and understand:
- Your approximate purchase-price range
- Estimated monthly payment
- Down payment requirements
- Closing costs
- Property taxes
- Homeowners insurance
- HOA fees
- Mortgage insurance, if applicable
- Cash needed to close
Your lender can help determine what you qualify for, but remember that the maximum amount you’re approved for isn’t necessarily the amount you should spend.
A comfortable budget is more important than the biggest number a lender gives you.
2. Assuming You Need 20% Down
This is one of the biggest misconceptions we hear from first-time buyers.
You do not automatically need 20% down to buy a home.
Depending on your circumstances, there are multiple financing options that may allow you to purchase with a smaller down payment.
The right loan program depends on your financial situation, credit, income, property and other factors.
The mistake is assuming you can’t afford to buy simply because you don’t have 20% saved.
Talk to a qualified lender before ruling yourself out.
3. Forgetting About the Costs Beyond the Down Payment
Your down payment isn’t the only money you’ll need.
Buyers should also plan for things such as:
- Closing costs
- Due diligence fee
- Earnest money deposit
- Home inspection
- Termite inspection
- Appraisal
- Survey, when appropriate
- Moving expenses
- Immediate repairs or improvements
The exact amount you’ll need varies from transaction to transaction.
That’s why we encourage buyers to understand their total cash-to-close, rather than simply asking, “How much do I need for a down payment?“
4. Not Understanding Due Diligence in North Carolina
If you’re buying your first home in North Carolina, this is something you should understand before making an offer.
North Carolina’s standard residential contract uses a due diligence period during which the buyer has the opportunity to investigate the property and make decisions about moving forward.
The buyer typically pays a negotiated due diligence fee directly to the seller and an earnest money deposit that is generally held in escrow.
These are two different things.
The amount of each can vary depending on the property, offer and market conditions.
This is one reason local representation matters. The appropriate strategy for a home in Charlotte may look very different from the strategy for a home in Kannapolis or Mooresville.
If you’re unfamiliar with North Carolina’s contract structure, don’t guess. Ask your Realtor and closing attorney to explain how the terms apply to your specific transaction.
5. Choosing a Neighborhood Based Only on the House
A beautiful house can still be the wrong house if the location doesn’t work for your life.
This is especially important around the Charlotte area because the communities can feel very different from one another.
A buyer considering Davidson, Cornelius or Huntersville may be comparing lake access, established neighborhoods, newer construction and commute times.
Someone looking at Mooresville or Denver may be more focused on lot size, lake access, property type and how much space their budget provides.
A buyer comparing Concord, Kannapolis or Harrisburg may be weighing price, commute and the difference between established neighborhoods and newer construction.
And buyers looking in Charlotte, South Charlotte or University City may prioritize proximity to work, transportation, restaurants, shopping, entertainment and other amenities.
There isn’t one “best” location.
The right question is:
Which location fits the way you actually live?
Our Neighborhood Guide is a good place to start comparing the communities where we work.
6. Skipping or Underestimating the Inspection Process
A home can look perfect during a showing and still have problems that aren’t obvious to the average buyer.
We recommend that buyers take the inspection process seriously.
Depending on the property, that may include:
- General home inspection
- Termite inspection
- Radon testing
- HVAC inspection
- Plumbing evaluation
- Structural evaluation
- Septic inspection
- Well inspection
- Survey
- Chimney inspection
Not every property requires every inspection.
A newer home in a subdivision may raise different questions than a 50-year-old house in Charlotte.
Likewise, a property with a well and septic system in parts of Mooresville or Denver requires different due diligence than a home connected to municipal utilities.
The goal isn’t to find a perfect house.
The goal is to understand what you’re buying before you commit.
7. Falling in Love With a House Before Understanding Its Value
It’s easy to become emotionally attached to a house.
Especially when you’ve spent weeks looking at homes and finally walk into one that feels like “the one.”
But before you make an offer, take a step back.
Ask:
How does this house compare with similar properties?
Look at:
- Recent comparable sales
- Current competition
- Days on market
- Condition
- Updates
- Lot size
- Location
- Age
- Property type
A house being listed for $500,000 doesn’t automatically mean it’s worth $500,000.
And a house being listed for $500,000 doesn’t automatically mean you should offer $500,000.
Your agent should help you understand the market before you decide how to structure your offer.
8. Ignoring Property Taxes and HOA Fees
Two houses with the same purchase price can have noticeably different monthly costs.
Why?
Because property taxes and HOA fees can vary.
When comparing homes, don’t look only at the list price.
Look at the complete monthly picture:
Mortgage + property taxes + homeowners insurance + HOA + mortgage insurance, if applicable
This becomes particularly important when comparing different communities and counties around the Charlotte area.
It’s also something to consider when comparing North Carolina with Oklahoma.
Odell Realty works in both markets, and property taxes, closing procedures, contracts and other parts of the buying process can differ between states.
That’s why a buyer relocating between states should get local guidance rather than assuming the process will be identical.
9. Waiting Too Long to Get Pre-Approved
You don’t necessarily need to have a lender in place before you start learning about the market.
But once you’re ready to seriously shop, getting pre-approved is one of the most useful things you can do.
A pre-approval can help you:
- Understand your budget
- Move quickly when the right home appears
- Make a stronger offer
- Understand your estimated payment
- Identify potential financing issues early
Our approach at Odell Realty is simple:
Start with the money, then define the search.
That’s the first step in our Buyer’s Journey.
10. Choosing an Agent Based Only on Who You Know
Buying your first home is one of the biggest financial decisions you’ll make.
You don’t necessarily need the agent with the biggest social media following or the agent who happens to be a friend of a friend.
You want someone who will:
- Explain the process
- Help you understand the market
- Point out potential concerns
- Help you evaluate neighborhoods
- Structure your offer strategically
- Keep track of deadlines
- Coordinate inspections
- Communicate with the lender and closing attorney
- Negotiate when problems arise
- Tell you when walking away may be the right decision
Local experience matters.
Someone who understands the difference between a home in Davidson and one in Kannapolis can help you evaluate more than just the listing photos.
One More Mistake: Thinking You Have to Figure Everything Out Yourself
This might be the biggest mistake of all.
You don’t need to know everything about mortgages, contracts, inspections, property taxes, neighborhoods and closing before you buy your first home.
That’s what your team is there for.
Your lender handles the financing side.
Your Realtor helps you navigate the real estate transaction.
Your inspector helps you understand the physical condition of the property.
Your closing attorney handles the legal closing process.
The key is having the right professionals involved early enough to help you make informed decisions.
What About Buying in Oklahoma?
Odell Realty isn’t limited to the Carolinas.
Our team also works with buyers in Northeast Oklahoma and the Tulsa metro, including Tulsa, Owasso, Claremore, Oologah and Bartlesville.
The fundamentals of buying a home are similar, but the actual process can differ from state to state.
Contracts, closing procedures, property taxes, inspections and other details aren’t necessarily identical between North Carolina and Oklahoma.
If you’re relocating between the Carolinas and Oklahoma, having a team familiar with both markets can make the transition much easier.
You can explore our Oklahoma Neighborhood Guides to learn more about the communities where our Oklahoma team works.
A Simple First-Time Homebuyer Checklist
Before making an offer, make sure you understand:
☐ Your realistic purchase-price range
☐ Your estimated monthly payment
☐ Your down payment
☐ Your estimated cash needed to close
☐ Due diligence and earnest money
☐ Inspection options
☐ Property taxes
☐ HOA fees
☐ Homeowners insurance
☐ Your preferred neighborhoods
☐ Your commute
☐ The home’s recent comparable sales
☐ Your offer strategy
If you can check those boxes, you’re going into the purchase much more prepared.
Frequently Asked Questions
What is the biggest mistake first-time homebuyers make?
One of the biggest mistakes is focusing on the house before understanding the financial picture. Buyers should know their budget, financing options and estimated monthly payment before becoming emotionally attached to a property.
Do I need 20% down to buy a house in North Carolina?
No. Some loan programs allow qualified buyers to purchase with less than 20% down. Talk with a lender about the options available for your situation.
What is due diligence in North Carolina real estate?
Due diligence is the period specified in the purchase contract during which the buyer investigates the property and decides whether to proceed. The buyer and seller negotiate the due diligence fee and the length of the due diligence period.
Should I get a home inspection?
In most situations, we strongly recommend that buyers have the property professionally inspected. The appropriate inspections depend on the property and its characteristics.
Is it better to buy a new construction home or an older home?
Neither is automatically better. New construction and existing homes have different advantages and potential considerations. The right choice depends on your budget, location, desired features, maintenance preferences and long-term plans.
How do I know which Charlotte-area neighborhood is right for me?
Start with your actual lifestyle. Consider commute, home type, budget, property taxes, HOA fees, lot size, amenities and how much space you need. Then compare communities such as Charlotte, South Charlotte, Huntersville, Davidson, Cornelius, Mooresville, Denver, Concord, Kannapolis, Harrisburg and University City.
Can Odell Realty help me if I’m moving from another state?
Yes. Odell Realty works across North Carolina, South Carolina and Oklahoma. Our team includes brokers and agents who work in each market, which allows us to help clients who are relocating between these states.
Ready to Buy Your First Home?
Buying your first home doesn’t have to feel overwhelming.
Whether you’re considering Charlotte, South Charlotte, Davidson, Cornelius, Huntersville, Mooresville, Denver, Concord, Kannapolis, Harrisburg or University City, the best place to start is with a clear understanding of your budget, goals and options.
And if you’re considering a move to Oklahoma, our team can help there too.
Not sure where to start? Talk with Odell Realty about your goals, budget and timeline, and we’ll help you build a plan for your first home purchase.
About the Author
Garrett Odell, Owner / Broker, Odell Realty
Garrett Odell is a North Carolina real estate broker and owner of Odell Realty. Garrett works alongside his wife, Brittany, and the Odell Realty team to help buyers and sellers throughout the Carolinas and Oklahoma.
The Odell family has been involved in real estate since 1997. Today, Odell Realty has brokers and agents working across North Carolina, South Carolina and Oklahoma, providing local guidance to buyers and sellers in each market.
This article is intended for general educational purposes and is not legal, financial, tax or lending advice. Real estate contracts, loan requirements, property taxes and closing procedures can vary. Buyers should consult the appropriate licensed professionals regarding their individual circumstances.
Want this explained for your exact situation?
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