Many first-time home buyers end up making the same mistakes; from not checking their credit score to forgetting to get the home inspected. Here are some of the top mistakes that many first-time home buyers make, and what you can do to avoid them.

Mistake #1: Not knowing your credit score

Most home shoppers know that it pays to have a high credit score, but they don’t realize how a low credit score can be costly. Mortgage lending is based on credit score, with those in the higher tiers receiving better interest rates. Before you start shopping around for a home, the best thing to do is to check your credit score. You can request a free copy of your report from the 3 major crediting agencies once a year on AnnualCreditReport.com.

Mistake #2: Not getting prequalified

Before searching for a home, you should meet with a lender to get prequalified. It’s actually never too early to meet with a lender and get a free consultation. Getting prequalified early will give you an idea of how much you are approved for and how much home you can afford.

Mistake #3: Not having a realistic budget

Many home buyers jump into wholeheartedly, and want to borrow the maximum amount they are approved for. What they don’t always take into consideration is that there will be taxes, insurance, maintenance, repairs and other fees that should be factored into their final costs. Knowing what fees will need to be taken care of ahead of time, and factoring them into your spending budget, will save you headaches and money trouble down the line.

Mistake #4: Choosing the wrong mortgage type

Most first-time home buyers choose a 30-year fixed-rate mortgage. But that doesn’t mean it’s the best option for everyone. For example, those who may be relocated within a short period of time may consider a 5/1 adjustable-rate, or others may consider a 15-year or even a 10-year fixed-rate mortgage loan. Consider different options and choose the one that best for your needs.

Mistake #5: Not getting the home inspected

It’s easy to get excited when you have found your dream home. But before the papers are signed the deal is done, it’s important to get the home inspected. It may add to your overall costs now, but unseen defects can easily run you up an even bigger bill than an inspection will.

For most first-time home buyers, finding the perfect home is new and exciting. So exciting in fact, that many of them overlook many of the same steps in the home buying process. If you are considering buying your first home, be careful to avoid making these mistakes.