Common Mistake First-Time Homebuyers Keep Making

Purchasing your first home is an exciting milestone, but for a first-time homebuyer, the process can feel overwhelming—especially when it comes to securing a mortgage. A recent Newsweek article spotlighted a critical mistake many first-time homebuyers make, as explained by Laura Judkins, a mortgage expert at Mid-Continent Funding, Inc. The pitfall? Failing to “season” your bank account before applying for a loan. At VeteransLoans.com, the DBA of Mid-Continent Funding, we’re here to unpack this concept and help first-time homebuyers—especially veterans—navigate the mortgage maze successfully.

So, what does “seasoning” mean for a first-time homebuyer? It’s the practice of keeping funds in your bank account for a consistent period—typically 60 days or more—before submitting your mortgage application. Judkins told Newsweek that large, last-minute deposits can raise red flags for lenders, suggesting an undisclosed loan or financial instability. For example, if a first-time homebuyer suddenly deposits $10,000 from a relative right before applying, lenders might question its source. Seasoned funds, on the other hand, demonstrate reliability and reassure lenders you’re prepared for homeownership.

@midcontinentfunding Our advice, deposit those funds 60-90 days ahead of time so the funds become seasoned in your bank account. #mortgage #mortgagetips #homeowner #homeownership #firsttimehomebuyer ♬ original sound – great tiktok sounds

Avoiding this mistake starts with planning. As a first-time homebuyer, deposit your down payment or closing cost savings well in advance—ideally two to three months before applying. If you’re receiving a gift from family, a common scenario for first-time homebuyers, document it properly with a gift letter and let it sit in your account. Judkins’ insight in Newsweek highlights a broader truth: preparation is key for first-time homebuyers.

Beyond seasoning, timing matters too. The housing market in 2025 is competitive, and a first-time homebuyer can’t afford delays. At VeteransLoans.com, we’ve helped countless veterans avoid this pitfall, securing their dream homes with VA loans tailored to their needs. Don’t let a simple oversight trip you up. As a first-time homebuyer, you deserve a mortgage process that’s clear, fast, and mistake-free—let us make it happen.