Two individuals shaking hands portraying the confirmation that a deal has been made

You got the email. The lender says you’re pre-approved!

It feels like a green light to buy anything with a front door, right?

Not quite.

In fact, many first-time buyers in Columbus (and across the Midwest) make their biggest missteps after they’ve been pre-approved. That “yes” from the bank can feel empowering -but without the right guidance, it can also give you a false sense of security.

Let’s break down the five most common mistakes I see, and how to avoid them -so you stay smart, strategic, and in control of your homebuying journey.

1. Assuming Pre-Approval = Final Approval

Here’s the truth: Pre-approval is based on a snapshot of your financial life. It’s not a guarantee. Until you’re fully underwritten and clear to close, your loan isn’t locked in.

So what can trip you up?

  • A new credit card

  • A big furniture purchase

  • A change in employment

  • Missing a payment (even a small one)

What to do instead:

Keep your financial life boring until you close. Don’t make any major changes without running it by your lender. If you’re unsure, ask.

2. Shopping at the Top of Your Budget

Yes, your lender technically approved you for $285,000. That doesn’t mean you need to spend it.

What lenders don’t account for:

  • Property taxes (which vary widely in Indiana)

  • Homeowners insurance

  • HOA fees

  • Monthly utilities

  • Maintenance and repairs

  • Your actual comfort level

What to do instead:

Shop for what feels good, not what looks good on paper. A slightly lower price point can mean a much more comfortable lifestyle -and way less stress down the road.

3. Forgetting the Hidden Costs of Homeownership

Pre-approval doesn’t include:

  • Closing costs

  • Inspection fees

  • Appraisal costs

  • Moving expenses

  • Emergency repairs

First-time buyers often forget that the monthly mortgage is only part of the picture. Homeownership comes with surprise expenses -especially in older homes across Columbus and the Midwest.

What to do instead:

Budget for at least 1–2% of your home’s value each year in upkeep. Build a little cushion now so you’re not blindsided later.

4. Thinking Pre-Approval Locks in Your Interest Rate

Spoiler: it doesn’t. Pre-approval gives you a general rate estimate based on current market conditions -but that rate isn’t locked until you’re under contract and actively working with your lender to secure your loan.

What to do instead:

Once you find “the one,” talk to your lender immediately about locking your rate. Timing matters -especially in a fluctuating market like the one we’ve been riding lately.

5. Skipping the Hard Conversations

Being pre-approved can make buyers eager to fast-track the fun stuff -house tours, Pinterest boards, daydreaming about kitchen tile.

But now is the time to get real:

  • What are your non-negotiables?

  • Are you okay with doing some repairs?

  • How much commute is too much?

  • Do you want space to grow -or just enough for now?

What to do instead:

Sit down (yes, literally) and write out your priorities. I walk my clients through this all the time, because clarity now saves heartbreak later.

Final Thought: Pre-Approval Is a Tool -Not a Pass

Getting pre-approved is a smart and necessary step. But it’s not a magic wand. It’s a signal that says: you’re ready to get serious -not that you’re ready to go it alone.

Smart buyers use pre-approval as a starting line -and then get guidance from a local expert who can steer them through the twists and turns of real-world home buying in Indiana.

(👋 That’s me.)