diff --git a/config.go b/config.go
index acde6f68..62fcaea6 100644
--- a/config.go
+++ b/config.go
@@ -318,20 +318,13 @@ func loadConfig() (*config, []string, error) {
 	// Service options which are only added on Windows.
 	serviceOpts := serviceOptions{}
 
-	// Create the home directory if it doesn't already exist.
-	err := os.MkdirAll(btcdHomeDir, 0700)
-	if err != nil {
-		btcdLog.Errorf("%v", err)
-		return nil, nil, err
-	}
-
 	// Pre-parse the command line options to see if an alternative config
 	// file or the version flag was specified.  Any errors aside from the
 	// help message error can be ignored here since they will be caught by
 	// the final parse below.
 	preCfg := cfg
 	preParser := newConfigParser(&preCfg, &serviceOpts, flags.HelpFlag)
-	_, err = preParser.Parse()
+	_, err := preParser.Parse()
 	if err != nil {
 		if e, ok := err.(*flags.Error); ok && e.Type == flags.ErrHelp {
 			fmt.Fprintln(os.Stderr, err)
@@ -391,8 +384,27 @@ func loadConfig() (*config, []string, error) {
 		return nil, nil, err
 	}
 
-	// Multiple networks can't be selected simultaneously.
+	// Create the home directory if it doesn't already exist.
 	funcName := "loadConfig"
+	err = os.MkdirAll(btcdHomeDir, 0700)
+	if err != nil {
+		// Show a nicer error message if it's because a symlink is
+		// linked to a directory that does not exist (probably because
+		// it's not mounted).
+		if e, ok := err.(*os.PathError); ok && os.IsExist(err) {
+			if link, lerr := os.Readlink(e.Path); lerr == nil {
+				str := "is symlink %s -> %s mounted?"
+				err = fmt.Errorf(str, e.Path, link)
+			}
+		}
+
+		str := "%s: Failed to create home directory: %v"
+		err := fmt.Errorf(str, funcName, err)
+		fmt.Fprintln(os.Stderr, err)
+		return nil, nil, err
+	}
+
+	// Multiple networks can't be selected simultaneously.
 	numNets := 0
 	// Count number of network flags passed; assign active network params
 	// while we're at it