Preparing to buy a new home can be both exhilarating and stressful at the same time. Between credit cleanup saving for a down payment and shopping for a property that meets their budget as well as their desires, prospective home buyers have a lot on their minds. Many house hunters understandably focus on the price tag and the monthly mortgage payments, which can vary as interest rates fluctuate. But, first-timers must also remember the many hidden costs associated with the investment.

As the National Association of Realtors notes, budgeting for a new home purchase should account for all the additional items, which can amount to more than one month's mortgage payment, depending on what and where you buy. Being prepared means familiarizing yourself with all the parties involved in the process and having extra cash stashed away both for costs that may be hidden upfront or on a more sporadic basis. Some of these expenses include:

• Move-in costs. Depending on the distance you're moving, the size of your family, the amount of furniture you have and a litany of other factors, moving can quickly become expensive. If you choose to hire a professional moving company, be sure to conduct thorough research, using resources such as the Better Business Bureau to choose the most cost-efficient and reliable options. Remember that you'll also have to set up, connect and pay for utilities such as water, electricity, cable and gas, all of which must be factored into your monthly budget.

• Transaction-related fees. In addition to that sizeable down payment you've worked so hard to save for, don't forget about what's owed to your real estate professional, your mortgage appraiser and your home inspector. There are also significant taxes that add to the upfront purchase cost, perhaps even some associated with the previous owner's time in the house, depending on when it's purchased. In the event that you're moving into a house or condo that's part of a homeowners association, you'll owe dues on either a monthly or upfront basis - perhaps both - but these will help cut down on some of the other maintenance expenses over time. 

• Upkeep and cosmetic concerns. Your short-term plans for a home may dictate the need to account for the costs of maintenance and renovations sooner rather than later. You can save on your mortgage payments by purchasing a home that needs work, but doing so requires an accurate understanding of how much each project will cost and at what pace the process can unfold. Over the long term, building value in your home is contingent upon enhancing and maintaining it. The age of the structure and the level of appreciation you seek may mean that considerable monthly expenses are allocated toward routine upkeep and minor improvements. These efforts can pay off doubly down the road if you are looking sell or refinance the home, but the expenses associated with them must be accounted for carefully and accurately. 

• Insurance items. Homeowners insurance and title insurance are not optional expenses - they're absolutely essential to securing the value of your home and everything in it. Title insurance protects you from liens that may be attached to the property by way of a previous owner, or from any complications with the deed. Private mortgage insurance may be required if you buy the home with a down payment of less than 20 percent of the purchase price. And depending where you live, it's worth exploring the need for - or requirements surrounding - flood insurance and other types of coverage against natural disasters. These likely aren't covered in your standard property insurance policy, but they'll be well worth the expense in the unfortunate event of a worst-case weather scenario.

Preparing to buy a new home can be both exhilarating and stressful at the same time. Between credit cleanup saving for a down payment and shopping for a property that meets their budget as well as their desires, prospective home buyers have a lot on their minds. Many house hunters understandably focus on the price tag and the monthly mortgage payments, which can vary as interest rates fluctuate. But, first-timers must also remember the many hidden costs associated with the investment.

As the National Association of Realtors notes, budgeting for a new home purchase should account for all the additional items, which can amount to more than one month's mortgage payment, depending on what and where you buy. Being prepared means familiarizing yourself with all the parties involved in the process and having extra cash stashed away both for costs that may be hidden upfront or on a more sporadic basis. Some of these expenses include:

• Move-in costs. Depending on the distance you're moving, the size of your family, the amount of furniture you have and a litany of other factors, moving can quickly become expensive. If you choose to hire a professional moving company, be sure to conduct thorough research, using resources such as the Better Business Bureau to choose the most cost-efficient and reliable options. Remember that you'll also have to set up, connect and pay for utilities such as water, electricity, cable and gas, all of which must be factored into your monthly budget.

• Transaction-related fees. In addition to that sizeable down payment you've worked so hard to save for, don't forget about what's owed to your real estate professional, your mortgage appraiser and your home inspector. There are also significant taxes that add to the upfront purchase cost, perhaps even some associated with the previous owner's time in the house, depending on when it's purchased. In the event that you're moving into a house or condo that's part of a homeowners association, you'll owe dues on either a monthly or upfront basis - perhaps both - but these will help cut down on some of the other maintenance expenses over time. 

• Upkeep and cosmetic concerns. Your short-term plans for a home may dictate the need to account for the costs of maintenance and renovations sooner rather than later. You can save on your mortgage payments by purchasing a home that needs work, but doing so requires an accurate understanding of how much each project will cost and at what pace the process can unfold. Over the long term, building value in your home is contingent upon enhancing and maintaining it. The age of the structure and the level of appreciation you seek may mean that considerable monthly expenses are allocated toward routine upkeep and minor improvements. These efforts can pay off doubly down the road if you are looking sell or refinance the home, but the expenses associated with them must be accounted for carefully and accurately. 

• Insurance items. Homeowners insurance and title insurance are not optional expenses - they're absolutely essential to securing the value of your home and everything in it. Title insurance protects you from liens that may be attached to the property by way of a previous owner, or from any complications with the deed. Private mortgage insurance may be required if you buy the home with a down payment of less than 20 percent of the purchase price. And depending where you live, it's worth exploring the need for - or requirements surrounding - flood insurance and other types of coverage against natural disasters. These likely aren't covered in your standard property insurance policy, but they'll be well worth the expense in the unfortunate event of a worst-case weather scenario.

As 2014 reaches its second half, the labor market has continued its steady improvement and many consumers have started to regain confidence in the strength and sustainability of the economy. Over the final two quarters, those factors could spawn more demand for homebuying. May and June saw a significant upswing in new home sales, offering promise that the first-quarter slowdown was mostly weather-induced and, more importantly, fully in the rearview.

Still, in many areas of the country - particularly crowded metro regions along the coasts, such as Boston, New York or San Francisco - demand continues to exceed available inventory levels. As such, both first-time and move-up buyers need to be aware of some of the roadblocks that may present themselves.

A recent CNBC piece detailed some of the common mistakes and misconceptions of modern-day house hunters - all of which prospective buyers should be aware of and try to avoid when entering into sometimes competitive environments. Under these circumstances, the margin for error is thin, so being educated, prepared and aware of your surroundings is essential. Here are a few of the more recurring themes: 

• Overvaluing online information. Sometimes it seems there are new resources, following in the footsteps of the likes of Zillow and Trulia, being unveiled every week. And these tools and applications can offer a lot of insight for buyers. But too often people make the mistake of treating them as a sort of guiding gospel when they are really just price estimations dictated by constant changes to the marketplace. It's dangerous to assume that these estimations are automatically in line with what the seller will be asking for, especially as neighborhoods change, with property values appreciating thanks to comparable recent sales or fewer foreclosures in the area. The safest approach is often to employ the services of a trusted real estate professional who knows the area, and allow their expertise to guide you, especially during a bidding process.
• Failing to realize renting may be the better option. Owning a home is an undeniably attractive proposition, but only if you're prepared for all the costs and responsibilities that come with it. That means paying for homeowners insurance, title insurance, closing costs and perhaps even association fees - all of which can quickly add up to a total that's comparable to what your monthly mortgage payments equal. Make sure you conduct a thorough rent-versus-buy analysis based on the market in question, your income, expenditures and the duration of time you plan to stay in the given area. If you're unsure whether living in the neighborhood for at least five years appeals, then buying probably isn't the best decision.
• Underestimating the power and presence of all-cash buyers. Traditional buyers use home loans to pay for their purchases, but the post-recession market has been anything but traditional. Cash buyers dominated many parts of Arizona, California and Nevada, among other places, scooping up foreclosed or otherwise distressed homes en masse, often rehabilitating them and reselling for profit. The process, commonly known as flipping, has eased somewhat in terms of the regularity with which it's seen, but certain purchase markets are still influenced by these sort of buyers. In many instances, they represent the interests of large-scale investors, show up with cash in hand and make offers that are hard to compete with. From the sellers' perspective, a high cash offer is tough to beat, since it simplifies the process and represents a sure thing. For buyers using a mortgage, the best defense against these competitors is credit cleanup, along with best efforts to save as much for a down payment as possible and to ensure that all other finances are in order.