5 Mistakes Home Buyers Make

This story was originally published on AOL on April 28.

First, the good news: Home prices are falling, giving buyers more negotiating power. Now, the not-so-good news: Lining up financing has become much more difficult as droves of homeowners default on their existing mortgages. This isn't to say you won't be able to secure the home of your dreams, but you will need to be a bit more cautious and conservative with your purchase.

Here are five mistakes to avoid when looking for a home in today's real estate market.

Also, the only accurate way to know the real market value of your home — and, in turn, how much house you can afford — is to see how much someone else is willing to pay for it. "If for some reason you've overpriced the property you already own, you'll know that after the first two or three weeks it's on the market," says Peter Comitini, a real estate broker with the Corcoran Group. Once you have a realistic picture of the amount your home will fetch, you can adjust your budget for a new home accordingly, he says.

Read our story for tips on how to sell your home in a cooling market.

Reviewing your credit report also gives you a chance to discover and settle any delinquent accounts. "I've seen a client get a worse credit score than he should have over a $40 doctor bill that went to collection that the person didn't even know about," says Sheerar. Keep in mind, once you find a problem, it can take several weeks and a bit of legwork to have the black mark taken off of your credit report.

Click here for more tips on improving your credit score.