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Homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses, he says. "That is the absolute minimum. It's better to have 2% to 3% socked away somewhere."

After scrimping and saving for a down payment this money cushion often isn't easy for first-time home buyers to have. There are many first-time buyers in the market now because of  affordable prices, low interest rates and a federal tax credit.

"Some people walk away from closing with a nickel and a stick of gum, and that's probably not going to be a good idea," says Dale Robyn Siegel, president of Circle Mortgage Group, in Harrison, N.Y. She recommends having at least six months of mortgage payments in the bank after closing on a house "especially now, with such an iffy job market."

Home buyers should attend a home inspection and ask questions, says Bill Richardson, a home inspector in New Mexico and president of the American Society of Home Inspectors. In this way they can get tips and recommendations from the inspector while they are working. The inspection report should be kept for reference.

For existing homes, an inspector will estimate the age of major components, giving the home buyer a sense of when items will need replacing. A furnace, for example, often lasts between 12 and 15 years; a water heater from 10 to 12 years, he says.

Kelly Rogers, director of education for the Consumer Credit Services of Orange County, based in Santa Ana, CA. recommends that home buyers and home owners create a timeline for those life expectancies by making a list of big-ticket home issues coming up in the future.

Also do not count on borrowing money needed for repairs. "The banks have really tightened up, so it's harder and harder to get a home-equity line of credit," Mr. Richardson says. "If you don't budget for repairs, you will never get the repairs done when you need it."

It is also important to address problems while they are small Mr. Richardson says.

"If the toilet is loose to the floor... it doesn't seem like a big deal, but it can leak and rot the floor," he says. "What could be a $15 repair could [end up being] a $700 repair or more."

$500 to $1,000 annual general maintenance budget for most starter homes is a good budget which would cover everything from painting a room to caulking the bathtub.

"Buying a home is one of the largest investments you're going to make," Richardson goes on to state, "If it's done wisely and with lots of thought, it can be a huge asset. If it's not well thought out, it can become a huge burden to you."