First-Time Homebuyer Tips: Avoid This Common Mortgage Mistake
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.
Why does this matter? For a first-time homebuyer using VA loans—a specialty at VeteransLoans.com—seasoning is often a requirement from agencies like the VA, FHA, or Freddie Mac. These programs offer incredible benefits, like no down payment and competitive rates, but they come with strict guidelines. Mid-Continent Funding sees this issue frequently, with Judkins noting in the article that many first-time homebuyers assume, “It’s my money, so it shouldn’t matter.” Yet, unseasoned funds can delay approvals or derail deals entirely. Our team at VeteransLoans.com works to educate clients early, ensuring their funds are ready when it’s time to buy.
@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.