I came across this great article on Smartmoney.com that I thought I should share. In a market where low home prices, big inventory and great tax benefits are luring first-time buyers into the market, there are some mis-steps occurring. Excited by the venture of shopping and purchasing a home, Smart Money came up with the 10 common mistakes that first-time home buyers are making. Below is an abbreviated version of their list.

1. Not knowing how much house you can afford: One of the first things buyers should do is talk to a qualified lender and get pre-approved for a mortgage
2. Assuming foreclosures are great deals: Weigh the costs of fixing up the property against the savings you’ll likely reap buy buying a lower-priced foreclosure home
3. Letting your true feelings show: No matter how much you’ve fallen in love with a house, don’t let the sellers agent in on it.
4. Failing to find a good buyer’s agent: Buyer’s agents have a fiduciary responsibility to the buyer exclusively- and should be looking out for their best interests
5. Underestimating the costs of owning a home: Be prepared to set aside a small percentage (1% at most) of the home’s purchase price annually for repairs and upkeep
6. Failing to budget for property taxes: To get an idea of how much you’ll be paying, call the local assessor’s office or talk to people in the neighborhood
7. Assuming your first offer will get accepted: Try not to get discouraged if you lose out on the first- or second- house you make an offer on
8. Skipping the inspection: Before signing anything, hire a professional inspector
9. Doing too much too fast: Some buyers want to make the house their own right away…instead, buyers need to exhibit patience and make changes over time
10. Failing to include a contingency clause in the contract: A mortgage financing contingency clause protects you if, say, you loose your job and the loan falls through or the appraisal price comes in under the purchase price

Share this with an agent, friend or first-time home buyer that you know and save them some time, money and heartbreak.