Buying a Home? Don’t Let Family Steer You Wrong With Bad Advice

Why Taking Homebuying Advice From Family and Friends Can Lead to Expensive Mistakes

When you're buying a home—especially for the first time—everyone has an opinion. Parents, siblings, coworkers, and well-meaning friends often want to help. And if one of them has bought a house before, they may speak with total confidence.

But real estate isn’t simple. It’s complex, personal, and constantly evolving. What worked for someone else—even just a year or two ago—might not apply to you at all. And when buyers follow the wrong advice, the consequences can be frustrating, expensive, or even deal-breaking.

Let’s break down why even the most loving advice can lead you astray, the most common situations where this happens, and how to avoid costly homebuying mistakes by trusting actual professionals.

Why Buying One House Doesn’t Make Someone an Expert

It’s easy to mistake personal experience for professional knowledge. Someone who bought a home once—or even twice—might feel like a seasoned expert. But the real estate and mortgage landscape is constantly changing, and no two transactions are ever the same.

• Interest rate swings: A buyer in 2020 might have locked in a 2.75% rate. That doesn’t reflect today’s higher-rate environment or how to shop for rates when markets are volatile.
• Regulatory changes: Remote notarization, appraisal waivers, and income verification rules differ by state and change often.
• Borrower-specific financing: Just because your cousin used a conventional loan with 20% down doesn’t mean your self-employed income or investment goals follow the same path.
• Every house is different: Some homes have deferred maintenance, seller-paid upgrades, or complex HOA rules.
• Every seller negotiates differently: Some are flexible; others are rigid. Knowing how to navigate those personalities takes expertise.

Real estate isn’t just about signing papers—it’s about navigating deadlines, personalities, legal requirements, and money.

At LendFriend, we help buyers across Texas and beyond make smart, confident choices based on today’s market conditions. With decades of combined experience, our team knows how to manage the nuances your brother, cousin, or friend likely won’t think about.

5 Common Situations Where Family Advice Goes Wrong

Here are some of the most common examples we see, where family or friend advice backfires:

1. “You can just sign everything online.” (International or Remote Closings)

This is one of the most dangerous assumptions. Buyers living or traveling overseas are often told they can “just DocuSign from anywhere.”

But depending on your state and lender, you may need:

• A Power of Attorney (POA) prepared and signed in advance

• Notarization at a U.S. embassy or consulate

• Remote Online Notarization (RON)—which isn’t accepted by every title company or state

If you follow incorrect advice here, you risk delaying your closing, incurring penalties, or even losing the home.

2. “Waive the appraisal to win the deal.”

Appraisal waivers can make offers more competitive—but they come with serious risks. We’ve seen family members encourage buyers to waive appraisals without understanding:

• How much cash the buyer will need to cover if the home appraises low

• How this impacts loan-to-value (LTV) ratios and mortgage insurance

• Whether their specific loan type even allows an appraisal waiver

Without guidance from a trusted mortgage advisor, this move can cost you thousands—or kill the deal.

3. “You need 20% down or you’re not ready.”

This outdated belief persists in families across America—but it’s just plain wrong.  A lower down payment can be the difference in helping you buy today. Today’s mortgage landscape includes:

• Conventional loans with as little as 3% down

• Down payment assistance programs for first-time buyers

• Options that allow you to keep more cash in reserves

Putting 20% down can be smart in some cases—but in many situations, it’s unnecessary or even unwise.

4. “Just use my lender—they got me a great deal.”

Referrals are great—but they’re not a substitute for comparison shopping. We've seen countless buyers accept a friend’s recommendation, only to discover:

• Their quoted rate was much higher than market

• They were being charged unnecessary points or fees

• They could’ve saved thousands just by exploring another option

Mortgage rates and closing costs vary daily. What worked for someone else might not be your best path forward. Comparing quotes and working with a mortgage broker are critical for making sure you're getting the best deal.

5. “That inspection report looks fine—just move forward.”

Family members often downplay inspection reports, especially if they got lucky when they bought. But what seems “minor” to them could be a deal-breaker for you:

• Foundation cracks, mold, or outdated wiring

• Insurance red flags (like roof age or polybutylene pipes)

• Loan condition concerns (FHA or VA may require repairs before closing)

The inspection report is not just paperwork—it’s your chance to pause, investigate, and negotiate.

The Emotional Bias Behind Bad Advice

Even when it’s well-intentioned, family advice is rarely objective. People project their own past mistakes, fears, and wins onto your transaction:

• “We didn’t offer full price and lost the house.” → Encourages you to overpay

• “I hated my adjustable-rate mortgage.” → Discourages flexible options

• “We skipped the inspection—it was fine.” → Risks overlooking serious issues

According to CRES Insurance, advice from loved ones often blurs the line between support and misinformation.

Don't Trust Reddit Either

It’s not just family and friends giving risky real estate advice—online forums can be just as misleading, and sometimes even more dangerous.

When you search “how to buy a house” or post a question in a Facebook group or homebuyer subreddit, you’ll get a flood of responses. Some are helpful. But most are:

• Based on personal anecdotes, not professional knowledge

• Completely irrelevant to your location, loan type, or financial situation

• Written by people with no legal or fiduciary responsibility to you

You’ll find advice like:

• “Always waive your contingencies to win the deal.”

• “The seller has to fix that by law.”

• “You can just use any lender—they’re all the same.”

• “PMI is a scam. Never pay it.”

The problem? Much of this advice is outdated, oversimplified, or just flat-out wrong—and unlike licensed mortgage professionals or real estate agents, the people giving it have nothing to lose if their advice leads you into trouble.

Real estate is hyper-local and highly personal. Advice that worked for someone else in another state, another market cycle, or with another income profile may not only be unhelpful—it could actively hurt your transaction.

If you wouldn’t take medical or legal advice from anonymous internet strangers, why trust them with the biggest financial decision of your life

Get Advice From the Experts Who Do This Every Day

Family support is valuable—but when it comes to financial decisions, you need professionals who live and breathe this industry.

At LendFriend, we’ve helped thousands of buyers navigate the most complex homebuying scenarios—from overseas closings to self-employed income, down payment assistance, new construction, and more.

We're not here to rush you—we’re here to educate you, advocate for you, and help you make smart, confident choices that reflect your unique goals.

If you want to want sensible homebuying advice from experts, give us a call at 512.881.5099 or get in touch with me by completing this quick form, and I'll be in touch as soon as possible.