5 biggest mortgage mistakes

Blowing your savings on the down payment and closing costs

If you're scraping together every last penny for your down payment, you're likely not financially ready to buy a home.

While you're certainly going to spend a large chunk of your savings on a down payment, you don't want to use all of your savings.

You want to have money left over, preferably at least a few months' worth of income.

Moving into a new home is expensive, and you'll need enough money to buy everything from furniture and curtains to lawn mowers and ladders.

And then there are home repairs and maintenance that can really add up. Your air-conditioning might go out, your hot water heater or roof might leak.

You want an emergency fund in any case, but when you own a home, you should save even more because there's no landlord to cover repairs.