When you are pre-approved, you are effectively a cash buyer. This makes it much easier to negotiate with the seller. Do not mistake pre-approval with pre-qualification; pre-qualification is only the first step in gaining pre-approval. Pre- approval will not only give you an exact price range for your purchase, but will also add a great deal of strength to your offer.

2. Overbuying:

You may qualify to borrow more, but can you really afford to? Evaluate your monthly costs: debt, food, transportation, entertainment, and savings. Remember to budget for closing, moving, redecorating and maintenance costs. Allow for increases in ongoing expenses such as utilities and taxes.

3. Failing to check out the thoroughly before buying:

How do traffic patterns change depending on the day, or even the time of day? Most homebuyers spend many weekends looking for a new dwelling. But what happens to the neighborhood on weekdays or after dark? Go back and visit the neighborhood at various times of the day and week.

4. Not knowing the Market value of the house:

Compare the cost of the home you're interested in with similar homes in an area. What have similar properties sold for in the immediate area? How long were they on the market? How does this one compare? Is it over-priced, under-priced, or fair value? Ask your REALTOR® for an up-to-date market summary.

Making an offer based upon the asking price, not the actual market value:
Do your homework.

5. Letting "first impressions" affect your decision too much:
There are entire books written on how the first impression of a home is the single most decisive factor affecting many purchasers' decision to buy. Don't let bad décor or messy housekeeping scare you away from a structurally solid home that meets all your needs. Remember, you are buying the house, not the furnishings.

6. Buying a home without a professional house inspection:
Protect your self.  It's highly recommended that you get a professional inspection. Not only will you know what you are buying, but these reports will protect you from unforeseen surprises in both the short and long run. Inspection reports are also great negotiating tools when asking the seller to make needed repairs.  If the seller agrees to make repairs, have your inspector verify that they are done prior to closing date. Do not assume that everything was done as promised.

7. Assuming that the Bank's quoted mortgage rates are written in stone:
Like many industries, banks are experiencing increased competition and are often willing to negotiate mortgage rates. Depending upon the market and profit spreads, it is sometimes possible to negotiate substantial savings. Ask your Banker or REALTOR for details. Using a mortgage broker is by far the best way to go about finding and arranging the very best mortgage to suit your specific needs. Trust in a specialist that knows how to package your application, what pitfalls to look out for, and how to protect your interests when dealing with the banks. Sure, you might get the same rate that a mortgage broker could get for you, but what you won’t get is all the facts about the mortgage that you have shopped for.

8. Not shopping for home insurance until you are ready to move:

Buyers often wait until the last minute to get insurance and do not have time to shop or compare policy options. Allow time to shop around and get the best deal.

If you wait until the last minute, you will be rushed in finding insurance.

9. Making verbal agreements:

Get it in writing. Written agreements almost always override verbal ones when it comes to contracts. Contract law says that verbal agreements are not enforceable when they deal with Real Property. Always get it in writing!
Not only are they harder to enforce, but any written contract you sign will override a verbal agreement.

10. Not knowing your rights & obligations:
If you do not know your rights, then you can be taken advantage of. If you do not know your obligations, you may inadvertently cause friction between yourself and those with whom you are about to enter a contract. Both your REALTOR® and Lawyer are great sources of information concerning this - make use of their expertise and resources.