Buying a first home can be a daunting experience. Here are five common and sometimes costly mistakes that new home buyers make:

1. Ignoring the costs of having a low credit score. Lower-score borrowers pay thousands of dollars in increased interest rates over the life of the loan. Don't think that not paying that cell phone bill is not going to make a difference, lenders will want to check everything.

2. Muddying the waters by shopping for other things before closing. Lenders continue to check credit scores right up until the time of closing. Too much shopping could cause the lender to take back the loan. Wait to buy new appliances and furniture and don't buy a new car during the middle of your loan process.

3. Scrimping on an inspection. Being surprised by the need for expensive repairs can be financially devastating.  Get a professional home inspector to give you an idea of any repairs that might be needed.

4. Buying without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises the interest rates.

5. Not using a Buyer's Agent.  Buyers should always use aRealtor or Buyer's Agent to help in the transaction of thier largest asset.  Stay away from For Sale By Owners or Builders that do not want you to have representation.  Your agent will insure you have the proper contingencies mentioned above.  

excerpts from: CNNMoney.com, Les Christie (04/19/2010)