The number one mistake most buyers make is underestimating the cost of homeownership. You may be able to afford a mortgage, but that doesn’t mean you can afford to be a homeowner. There are tons of other expenses, outside of mortgage payments, including taxes, insurance, maintenance, and periodic home repairs. Being a homeowner can be very expensive and a bit overwhelming at first, but it is still the most important investment most people will make.

The housing market can teeter from good to bad, as we’ve seen with the recent housing crisis, but home values tend to go up building significant equity over time. In fact, according to Lending Tree, home prices in the U.S. rose by three to six percent annually during the past couple of decades. In many cases, owning a home is how most families build wealth.

In honor of National Homeownership Month and the many incentives to buying, consider taking your piece of the American Dream and become a homeowner. Before making the leap into homeownership, it’s important to do your homework – make sure you can afford the cost of owning a home and make sure you understand the true cost of buying a home. The following are a few ‘hidden’ costs to regard when buying:

Title insurance – the fee that’s charged at closing that protects your investment in the event that the previous owner did not actually own the home that was sold to you. This fee is based on the value of the home.

Legal fees – is not required, but is often recommended because buying a home can be a complicated legal transaction. Home transactions typically use boilerplate forms for everything. If so, the legal review may not be required.

Private mortgage insurance – is charged when the house is being purchased with less than 20 percent down. If you have a loan that requires it, count on paying a couple month’s premiums in advance.

Notary fee – is charged at closing and is required to swear that you are who you say you are. This could cost around $50.

Lender/broker fee – this fee is charged by lenders and brokers to prepare purchase documents. This fee could cost between $600 to $1000.

Appraisal fee – this fee is charged to determine fair market value and cost $250 on average.

Survey fee – is the fee that’s charged to determine the exact boundaries of the property. You won’t need to pay for this fee if an existing survey can be used. On average this could cost $150 to $400.

In addition to closing cost and other fees required to get the keys to your new home, don’t forget the hidden cost to actually live in the home. Moving expenses, utility deposits, pest control, paint and new carpet are all additional cost to consider when buying a home. For more information on buying and owning a home, visit www.hud.gov.

I am pleased to report that Money Management International (MMI) announced the official launch of their foreclosure prevention program, which has grown from a successful pilot program started in July 2007. With receipt of its second $1 million grant from HSBC-North America, MMI is able to expand its Preserving Homeownership and Savings Education Strategy (PHASES) program.

Utilizing the HSBC funds, the PHASES program provides grants for up to $7,500—an increase from from $5,000 during the pilot phase—to qualified homeowners who are striving to recover from a temporary financial setback. As part of the program, the PHASES team provides one-on-one financial counseling sessions to help keep families in their homes and effectively manage their personal finances.

During the pilot phase of the program, MMI and HSBC helped hundreds of homeowners become current on outstanding mortgage payments and have provided vital financial planning skills to keep consumers on the road to financial stability. The pilot program’s success is evidenced by its receipt of the NeighborWorks America’s 2008 Innovations in Homeownership Contest, for its innovative post-purchase strategy for consumers.

The PHASES program is currently available to homeowners in Arizona, California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, Texas, and Virginia. To learn more about the MMI PHASES program, call 888-589-6959 or visit www.MMIPHASES.com.

According to an S&P study released earlier this week, home prices dropped a record 15.4% in the second quarter compared with last year. (Visit CNN.com to see which cities faired the worst.) With falling prices and a lot of inventory to choose from, you might be thinking that this is a good time to get a great deal on a new home—particularly if you don’t have a home to sell first.

Even if you are one of the lucky few who are only buying, it is important not to underestimate the true cost of homeownership. You may get a home for a good price; however, there are many additional costs that are incurred by new homeowners. There are up-front costs, including the down payment and closing costs. The other costs you may incur include realtor’s fees, property taxes, and homeowner’s insurance. The costs most people are surprised by are the little things you need to buy once you get into the house, so a realistic budget is essential.

The other thing you must consider is the cost of financing your new home. It may be wise to improve your financial standing before you buy a house; even it takes some time and effort. For homebuyers with less than perfect credit, mortgage loans are tougher to get then they were in year’s past.

To learn the steps to homeownership and find out if you are ready to buy, sign up for a first time homebuyer’s workshop.