1. Not knowing how much house you can afford. Many novice homebuyers spend a lot time researching homes, comparing kitchens and backyards, but very little time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get preapproved for a mortgage.

2. Assuming foreclosures are great deals. Just because the previous owner owed $450,000 on a house before the bank took it over doesn't mean it's worth that much now. Values have slipped significantly, so you may not be getting the bargain you think with a foreclosure. Also, most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized. Weigh the costs of fixing up the property against the savings you'll likely reap by buying a lower priced foreclosed home.

3. Letting your true feelings show. No matter how much you've fallen in love with a house, don't let the seller's agent in on it. Otherwise, he will gain the upper hand in negotiations.

4. Failing to find a good buyer's agent. Buyers should rely heavily on knowledgeable agents to help them their finances in order. Or consider using an agent recommended by a relative or friend.

5. Underestimating the costs of owning a home. Whether it's a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many homebuyers don't anticipate the additional costs for repair and maintenance, or for an increase in utility costs. 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 budge for property taxes. To get an idea of how much you'll be paying, call the local assessor's office.

7. Assuming your first offer will get accepted. As home prices get even more affordable, competition is bound to heat up. 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. The seller isn't likely to tell you there's mold in the basement or the walls are poor insulated.

9. Doing to much to fast. Some buyers want to make the house their own right away. Some buyers overextend themselves on credit to do so. 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 lose your job and the loan falls through or the appraisal price comes in over the purchase price. Should one of these events occur, the buyer get back the money he used to secure the property. Without the clause, he can lose that money and still be obligated to buy the house.