As the housing market continues to rebound, Americans are once again gearing up for the “summer swap” — a move due to a new job, the need for a bigger home, or the desire for a better school district. Unfortunately, too many will rush into this decision, thereby making one or more of the ten worst home buying mistakes that may leave them unable to qualify for the home they want, ill-prepared to make ends meet once they have it, or with a home that may be difficult to sell in the future.

We hope this quick list — along with the examples from actual clients — will help you avoid these costly home buying mistakes.

1. Failing to improve your credit score — John and Carrie are paying $120 more per month on their mortgage because their credit score wasn’t high enough to qualify for a better interest rate. Go to myFICO.com, Experian, Equifax, or TransUnion, or talk with your lender to see which scoring system.  Caution: Do not do anything that can alter your credit score — apply for new credit, make late payments, close an old account, etc. — until after your closing.

2. Not lining up funding — Diego’s full-price offers were not accepted on three homes because he has yet to secure his When sellers receive multiple offers, they’ll generally go with those from buyers who have already pre-qualified for the mortgage.

3. Forgetting to factor in the added costs — Kim and Roberto moved into a larger home for their growing famil While they qualified for the loan, they’re struggling every month to pay HOA fees, taxes, insurance, and utilities. Your bank or mortgage lender can help you determine how much home you can afford…but don’t forget those extra costs. Go to CNNMoney, Zillow, Bankrate.com, or Realtor.com for calculators to help you determine the right price.

4. Failing to use free resources available — Mikki and Terrell just purchased their first home, a condo, directly from the In talking with their new neighbors, they learned they paid more than many others in the complex because they failed to use a Realtor (sometimes called a purchasing agent or buyer’s agent) when negotiating the price, closing costs, warranties, and extras. In addition to negotiations, Realtors can also run thorough home searches, offer advice about locations and neighborhoods, and take care of paperwork and details such as the initial offer, escrow, due diligence and inspections, appraisals, cleanup of lender issues, underwriting, timelines, final closing, and communication with the seller and listing agent (in this case, the developer). And the best part: all these services won’t cost you a dime as the buyer! If you don’t know an experienced Realtor in your area, ask for referrals from trusted friends or family, or go to Realtor.com or Realtor.org to identify the right expert for you.

5. Making a large purchase before your closing date — Krista purchased a condo, but while waiting for the closing, she charged a new bed, flat screen TV, and several other items for her new hom This altered her debt-to-income ratio, causing her to lose the ability to purchase a home for nearly a year. The lender/underwriter will do a final credit check just before closing, so save these kinds of purchases for after closing.

6. Neglecting to have a thorough inspection — The Callahans spent over $6,800 to fix problems on their new home that a simple walk-through didn’t Inspectors can check for problems beyond cosmetic, e.g., termites, mold, structural, foundation, roof, attic, crawl space, electrical, plumbing, drainage, etc. This handy home inspection checklist highlights some of the key problem areas. A good Realtor should have a network of trusted inspectors to help with this step.

7. Failing to consider resale — When Jacob and Angel purchased their cute little starter home, it met their personal criteria based on proximity to work, square footage, and number of room With a new baby, they’ve outgrown their home, but are having a hard time selling it due to its location on a busy street near a hospital, which means ambulance sirens at all hours of the day and night. Remember, location is key. Positive locations include those with a good view, by water, on a golf course, near a park, on a quiet street or cul-de-sac, or in a great school district. Negative factors might include locations in close proximity to excessive noise, busy streets with high traffic patterns, high-voltage power lines, dilapidated homes, or undesirable industries like sewage treatment facilities, landfills, chemical or industrial plants, bars, prisons, etc.

8. Being unrealistic about improvements — Jesse and Krystal had planned to immediately replace the pink tile throughout the master bath and update their Before buying, a contractor friend guessed that the cost would be around $7,500, but with the actual estimates after moving in averaging $21,000-$30,000, the improvements will have to wait. Failing to obtain reasonable cost projections can leave new homeowners very disappointed…and stuck with a home they may not completely enjoy.

9. Failing to consider homeowners insurance costs — Esteban failed to research homeowners insurance costs prior to adopting a large do Some carriers refused to provide insurance, so he was forced to pay $1,600 more each year with a provider he found to underwrite the policy. Other factors that could determine the cost of insurance include the location (is it near an earthquake fault line or flood zone?), the crime rate in the area, proximity to a fire station, age of the home (due to wiring, plumbing, roofing, or foundation problems), and whether there’s a pool.

10. Ignoring future needs — Max didn’t consider parking space for his son Andrew’s car when he purchased his As a result, Andrew often has to park up to two blocks away due to zoning restrictions in his neighborhood. It’s important to plan for your immediate needs, but to also consider future needs as the children grow up or aging parents move in.

You can save thousands of dollars — and avoid enormous potential problems — by avoiding these costly mistakes when purchasing your next home.