Mistake #3: Buying too much of a fixer-upper

Purchasing a fixer-upper can take you outside of your budget and may even cause you to default on your mortgage payment.

Be sure to buy a home that is in relatively good condition. Don't expect to be able to make costly repairs or renovations if you don't have the money to pay for the repairs when you buy it.

It will take a few years to build up equity in your house that you can tap for improvements through an equity line of credit.