SALT LAKE CITY - Hindsight is 20/20.

When I think about the mistakes my husband and I made when purchasing a home in 2007, a few months before the real estate market really started to take a dive, I cringe.

The details are actually quite embarrassing. We are educated, responsible, and relatively intelligent people who put ourselves in an impossible situation. We put a great deal of money down (too embarrassing to mention the exact amount) on a tiny town house in California. It didn’t have a yard, included a $200 HOA that gradually increased during the two years we lived there, and had sky-high property taxes.

When we purchased the house, we were told it also included a Mella-Roos, which we mistakenly thought was fancy, filtered water. It turned out to be an additional property tax on top of the other one. Our neighbors had parties until all hours of the night, and seemed to celebrate every holiday on the calendar. It was a bad decision entirely.

After two years of living hand-to-mouth because every penny we earned went into our mortgage, we decided to throw in the towel. Of course we were too late, since the market had already plummeted and selling your home became almost impossible in a market full of short sales and foreclosures.

It’s a sore subject within our household because we never felt like “the type of people” who would be in the position to foreclose on a home. But we’ve come to meet so many people with the same story as ours that any stereotype we bought into in the past has been thrown out the window. A lot of us were in the same boat, and sadly it resembled the Titanic.

Like most difficult life experiences, it taught us a lot. We learned from our mistakes and there’s a great deal we wish we would have known when buying our first house.

Location, location, location

It’s a realtor’s mantra, and for good reason. Your dream home can turn into a nightmare if it’s in a neighborhood that doesn’t fit your lifestyle.

“I always suggest that buyers come back at night to check out (and listen) to the night scene. It could be a completely different property when the sun goes down,” suggests Ryan Mills, a seasoned realtor with Avian Real Estate.

Most neighborhoods seem peaceful during the day, and that’s because nobody is home. Always scope out the neighborhood at night and on the weekend to get a better idea of what it’s like when residents are out and about. It will give you a better sense of how safe your neighborhood is, and whether or not it’s a good fit for your family.

If you’re house hunting and spot someone watering the lawn next to the house you’ve fallen in love with, don’t be afraid to ask them what they think of the neighborhood. It may be the best way to get an honest rundown on the area you may eventually call home.

The bank will qualify you for a loan you can’t afford

You don’t want to learn this the hard way.

You lender won’t take every expense into account when approving you for a loan. Banks don’t always consider the fact that along with having a roof over your head, you may also want to purchase food and clothing as well.

Review your budget and take into consideration extra expenses, like homeowner’s insurance, property taxes, homeowners association fees, and mortgage insurance. Know exactly how much your monthly expenses are and how much your monthly mortgage installments will be before signing on the dotted line.

Tonight at 10

Radon: When to worry. What to do. Tonight at 10 on KSL, Your News Specialists.

KSL News at 10 looks at Radon testing in your home. They answer why you should test, what you should worry about and if you find levels what you should do.

“Closing costs always come as a shock to buyers,” said Mills, who cautions buyers that they should also be aware of unforeseen costs before getting into escrow. “With every sale, buyers will incur closing costs that will cover lender, title and escrow fees. This is on top of the down payment for the loan and can get very costly. It’s roughly 1-2 percent of the purchase price.”

Homeowner’s associations are evil

OK, maybe that’s a bit harsh and unfair. But few homeowners say, “Wow! I just love my homeowner’s association! They’re so helpful!” More often than not, homeowners find themselves at odds with their HOA.

If the neighborhood you move into has a homeowner’s association, know exactly what your HOA fees cover and what they don't. Find out if the guidelines for homeowners are rigid or flexible. Will they allow you to refurbish your home without too much of a fight? Do they put their funds to good use? Do they actually enforce the rules they’ve set up? Are there any fee hikes in the works?

Homeowners association fees may also rise after you’ve bought your home. If you’re buying into a neighborhood with a lot of foreclosures, the HOA may have to compensate for the fees that weren’t collected when families walked away from their homes, by raising fees of the residents who stayed.

"Fixer-uppers" will require fixing

The idea of buying a “fixer-upper,” and spending your free time making your house into a home with your bare hands may sound like a romantic idea initially. But repairs will always cost more than you predict, and projects will always take more time than you estimate. More than likely, professionals will have to be brought in, draining your bank account and your patience.

Before you buy an older home, don’t worry too much about cosmetic problems and find out how old the plumbing and roofing is. Those are two expenses that will turn your dream house into a money pit.

Mills suggests, “Buyers need to do their inspections and review their disclosures and reports thoroughly. This way there is no shock when they move in.”

Your home doesn’t come with a crystal ball

There’s no way to know exactly what the market will do after you buy a home. Realtors and lenders may tell you it’s a great time to buy, but keep in mind that they have something to gain from your purchase. Do your homework and know that buying a house in any market is a gamble There’s no guarantee that your house will appreciate quickly, or at all. Anyone who tells you differently is trying to sell you something.

Nicole Pollard currently resides in Canyon Country, Calif.

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