I wanted to continue my conversation about home ownership.

Many people want to buy a home and complete the American dream.

You want to avoid first-time home buyer mistakes from the very beginning.                                                   

"Shopping for a home is exciting, exhausting and a little scary, especially in this market. In the end, your aim is to end up with a home you love at a price you can afford.

Unfortunately, many people make mistakes that prevent them from achieving that simple dream."

Source MSN Money- 10 first-time home buyer mistakes

Before you go shopping for a home here are some first-time home buyer mistakes to avoid:

Not knowing what you can afford is the biggest first-time home buyer mistakes that people make.

You need to write out all of your bills.  Subtract them from your income.

The amount left should be what you look at for your monthly payment.

You should never go house hunting without knowing how much house you can truly afford.

Many times we forget that it's okay to purchase a starter home and upgrade later to a bigger house once your family and income starts to grow.

Skipping mortgage qualification is second on the list according to the article for first-time home buyer mistakes.

Getting pre-approved from a lender is a good place to start before you go house hunting.

You must make sure that you don't apply for any new credit during this process.

That can blow the deal for you.

As a loan officer I remember getting pre-approvals for clients to only have the deal fall through during the underwriting process.

A pre-approval letter from the lender is not guarantee that the lender will approve your loan once it is submitted.

 Failing to consider additional expenses is third on the list for first-time home buyer mistakes that many people over look when purchasing a home.

You must have reserves set up for expensive repairs like hot water heaters, roof, your property taxes and insurance.

The "life happens" fund that I refer to all the time is needed when you are a home owner.

Saving money in the "life happens" fund will help keep you on budget when unexpected expenses arise.

I also advise my clients to get their property taxes and insurance included in their mortgage payment to avoid falling behind.

Keep in mind if you're looking to purchase a condo that their are monthly condo fees that are due each month.

When calculating your bills be sure to include the condo fees.

Fourth on the list of first-time home buyer mistakes is being too picky.

According to the article you should make a wish list of everything that you want. 

However you may not be able to afford everything in your first house.

Remember that you can always upgrade later.

Fifth on the list of first-time home buyer mistakes is lack of vision.

If you can comfortable afford the house you can make changes as you go.

My first condo had pink carpet in both bedrooms.

I didn't like it.  My realtor negotiated a carpet allowance of $1000 off the price.

You must use your imagination when you go house hunting.

We all don't have the same taste.

So you have to think about how your furniture will look in the space. 

Being sweep away is sixth on the list of first-time home buyer mistakes.

There are minor cosmetic fixes that owners do paint a perfect picture of a home.

When you're out house hunting look for homes that have potential.

It's better to get a home that needs a little work that will improve the value of the home.

Compromising on important things is seventh on the list of first-time home buyer mistakes.

In the article it talks about not buying a two bedroom home when you plan to have children.

I would agree with this statement.

You run the risk of out growing the house before you build any equity.

It's also been my experience that with two bedroom homes its hard to get them rented or sell.

Planning for your future makes this mistake avoidable.

Eighth on the list of first-time home buyer mistakes is neglecting to inspect the house.

You must make sure that as soon as you have a signed contract that you have a whole house inspection.

Your realtor should have reputable people that he or she uses to inspect houses for them.

You don't want to end up with costly repairs as soon as you move-in because you have made this mistake.

The ninth on the list of first-time home buyer mistakes is not getting your own real estate agent.

You will find some realtor's that will help you and offer to lower the commission rate to service both the buyer and seller.

It's in your best interest to get someone who has only your best interest in mind.

Coming in tenth on the first-time home buyer mistakes list is not planning for the future.

You should ask questions about your street and neighborhood before you purchase.

I advise my clients to go sit in front of the home on a Friday or Saturday night to see what the neighborhood is like.

You may find that the street is to busy.

You may find out about your potentials neighbors activities.

They may throw parties on the weekend.

You just need to do more than just inspect the house.

 My advice is not to fall in love with a home until you sign all the papers at a closing.

You don't want to get so wrapped up in wanting a house that you stop looking at the big picture.

Purchasing a home for many American's is the biggest purchase that you will make in your life time.

Be sure to get pre-approved before you start looking.

When you find a property that you like call the utility companies and find out what the average bill is per month.

This will help you decided if the property fits into your budget.

 Are you going to avoid these first-time home buyer mistakes???

Your financial coach,

Renee Lawson

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