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Home-buying in Maine should be one of the most exciting experiences of your life. At the same time, it is important not to let the excitement overcome your better judgement. If you just avoid some common mistakes, you can be as excited about your decision ten years from now as on the day you move in. Here are 7 mistakes to avoid when shopping for a property and a home loan:

1. Failing to budget properly. You may think you have a rough idea of what you can spend, but you won’t know for sure unless you take the time to document your past expenses. If possible, use a year’s worth of expenses so you account for any seasonal items. Once you think you know what you could afford to put toward mortgage payments, try setting that amount aside for a few months. This will be a good dry run, as well as a way of raising money for a down payment.

2. Accepting the real estate agent’s definition of what you can afford. Real estate agents often do a rough estimate of how big a home loan you can afford, based on your household income. While you might qualify for that home loan on paper, that doesn’t mean you’d be comfortable with the payments. Go with an estimate based on what your budget tells you and mortgage advisor tells you.

3. Keeping up with the Joneses. Some home buyers overreach in buying a home, trying to match what their friends purchased or impress their families. Once you move in though, you’ll find the most enjoyable home is one you can readily afford.

4. Not bothering to shop around for mortgage lenders. Mortgage rates not only vary from day-to-day (hour to hour in today’s market), but they can also be very different from one mortgage lender to the next. Shopping around gives you a better chance of finding the best rates, as well as service.

5. Not knowing the market. Houses, properties, and neighborhoods are far from uniform, so it can take a while to get a feel for what values are like in a particular area. Don’t fall in love with a house too quickly–the more you shop around, the better you’ll know which characteristics suit you best, and what prices represent a good value.

5. Expecting your income will keep going up. Since people often buy a home early in their careers, they tend to assume that the mortgage may become easier to afford in the future because their incomes will naturally go up over time. More recently though, with unemployment rising and income growth slowing, this hasn’t been such a sure thing. Be sure you can afford your home loan from the start.

6. Neglecting to save enough up front. Closing on a house is expensive. Besides your down payment, there are a variety of fees and expenses for things such as mortgage processing, insurance, home inspection, and lawyers. Make sure you leave a cushion, rather than getting caught short at a crucial moment.

7. Not looking into special programs like VA or FHA mortgages. These are mortgage insurance programs that give lenders confidence in making home loans to borrowers with limited or less-than-perfect credit histories. While FHA mortgages require that you pay a mortgage insurance premium, FHA mortgage rates may well be lower than you could get otherwise unless you are a saint with a large down payment. One of the first things you should discuss with a Maine mortgage lender is whether you qualify for a VA or FHA mortgage.

Face it–you may only buy a home once or twice in your life, so you’ll probably never get a chance to gain much experience with the process. However, you can learn from the experiences of others by avoiding the above mistakes.