Mistake 1: Not knowing how much they can afford to pay for a house before they make an offer.
Prevention: Get pre-qualified for a mortgage from a Lender/Bank, so you know in advance exactly how much you can afford.
Mistake 2: Not finding out in advance whom the real estate agent represents.
Prevention: Asking your Realtor. Most people think their agent is working for them. But unless the agent is working as your buyer representative, he/she represents the seller.
Mistake 3: Not realizing that the wrong mortgage can cost thousands of dollars in unnecessary interest and taxes.
Prevention: Consulting with a mortgage specialist before making a final decision on which mortgage to choose.
Mistake 4: Not discovering hidden defects before buying a home.
Prevention: Hiring a professional to conduct a pre-purchase home inspection.
Mistake 5: Not knowing how debt can affect their ability to buy or refinance a home.
Prevention: Do not apply for credit. Ask your mortgage professional in advance