Blunder #1 - Trying to time the market to buy or refuse to buy.

There is no accurate prediction as to when it may be the right time to buy a home.  If you have lender approval and are ready for home ownership, then do it.  All the time waiting to time the market, you could be building equity, getting tax deductions and reaping the other advantages of owning your own home.

Blunder #2 - Making an offer with no contingencies in place.

In most cases, you will put down earnest money (a good faith deposit) on a home.  Make sure you have contingencies in place to receive your earnest money back - such as if the home does not appraise, lender does not give you loan approval, major structural issues are found during the inspection, or if the seller did not disclose material facts, etc.

Blunder #3 - Not speaking with a lender before viewing homes.

With tighter lending restrictions now in place, you definitely must know how much home you can afford and if a lender will actually lend you the $$$ for a mortgage loan.   By getting pre-approved, it tells the seller that you are a strong buyer and not just someone "kicking tires" thus the seller will be more likely to negotiate.

Blunder #4 - Not thinking about if you have to sell the home later on.

You must think about resale later on.  Find a home in a sought out location and amenities that future buyers will want.  Even though you may think you will be in the home for a long while, you never really know what life changing things could happen in the near future to shorten your length of stay. 

Blunder #5 - Not reading the fine print.

At closing, there will be tons of documents to sign.  Lucky for you, there are only a few documents that are critical, you may request a copy of these ahead of closing so you can review and ask questions before closing.

Blunder #6 - Not doing your homework on the neighborhood.

Finding a great neighborhood will increase your home's value.  Visit the neighborhood several times a day, talk to neighbors and ask their opinion of the area.  Chosing a home close to your work and shopping can be a good fit for your lifestyle too.  Even if you may not have children, good schools districts raise property value.  (See blunder #4).

Blunder #7 - Not doing research on a foreclosure or fixer-upper.

Even though you may find a bargain, beware of the pitfalls.  Repairs can be stressful and very costly.  Get estimates on repairs and renovations to make sure they will pay for themselves.

Blunder #8 - Purchasing a home you cannot afford.

Even though a lender pre-approves for you a large payment, it still may not be a good idea to max out, since this could lead to trouble later on.  To play it safe, your payment should not be more than 28% of your monthly income.

Blunder #9 - Buying the first house you see.

This is definitely common sense.  You could miss out on a good deal or regret your purchase.  Of course you don't have to visit every home on the market, but at least compare a minimum of 3 homes before making an decision.

Blunder #10 - Not getting a home inspection.

Don't leave it up to to your friend or relative to give their blessings, instead hire a license professional inspector.  The home may look great but it is a mistake to assume.  Even new homes have problems.  Make sure you are there during the inspection so the inspector can explain issues. Prices of home inspections vary in this area, ranging from around $300 to $500 depending on the size and age of the home but it is money well spent in the long run.