4.  Underestimating the cost of owning a home.  Many home buyers don’t consider the cost of repairs and maintenance when they purchase a home.  Things break and need to be fixed.  Take a look at how well previous owners have cared for the home, as well as the age, before buying.  If available, consider purchasing a Residential Service Contract (or ask your Seller to pay for it).  These contracts could cover the cost of some repairs after closing.  Your utility costs may go up as well so take that into consideration when budgeting.  It would be wise to start a savings account for just such maintenance.

Check back later for #5.