Homeownership - It' the ultimate hope and dream for many, but expensive pitfalls can transform your dream into a nightmare. Pay attention to three key concerns - upfront reality check, expert services and preservation - to prevent common pitfalls and ensure the kind of homeowner experience you desire.

Upfront reality check. Can you afford to buy a home now? Certainly current economic conditions attract potential owners with low market pricing and very appealing interest rates, but you still must carefully evaluate your income stability, credit history, total debt, savings, stage of life and the total expenses associated with owning a home.

This is not the time to estimate income on the high side and expenses on the low side. Quite the contrary. With the uncertain economy, is there a possibility of reduced income? When you own a home, you simply don't have the flexibility to easily adjust to income reduction or increased indebtedness. On the expense side, be sure to factor in: mortgage, interest, taxes, insurance, association fees, increased utilities expense, commuting costs, and short- and long-range maintenance costs. Carefully assessing your finances will help you to determine the home price you really can afford.

Expert services. Whether you plan to build, buy or renovate; you need expert service providers to protect your interests. Choose a highly-recommended realtor who specializes in representing buyers. The realtor will compare prices, guide negotiations and follow through on the many steps of purchasing your home. Another critical expert will inspect the home to look for hidden problems that need to be repaired or considered in your final negotiated price.

You'll need the services of an excellent contractor when renovating. This professional will follow codes, secure permits and pay subcontractors. Anything less than excellence in this area can cause serious legal and financial problems. It's also a good idea to weigh the return on investment for certain upgrades. A remodeled kitchen or bath will add more value than a greenhouse or Jacuzzi.

Preservation. Carefully maintaining your home preserves your peace of mind, property value and financial wellbeing. Like homeowner associations that budget set reserves for future repairs, you should plan and save for home repairs and replacement of major appliances. Experts recommend you invest a minimum of five percent of your gross income in short-term CD's or a liquid mutual fund that you can easily access, when the need arises.

Be sure to keep up with items that can cause continuous damage, if left unattended. That slow leak can turn into mold and flooding problems. The same is true for any roof issues. Don't choose cosmetic changes over repairs that will preserve the value of your home. If you estimate the life of your refrigerator to be four years, saving that money monthly will prevent future indebtedness.

Avoid these common pitfalls, and you will discover the distinct pleasure of building your "nest egg", while enjoying the house you have transformed into your own delightful home.

Learn more about this author, Sandra Sheridan.
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