When you use a custom host header to create web application in SharePoint and browse it from a local machine that is running Microsoft Internet Information Services (IIS) 5.1 or a later version, you may receive an error message that resembles the following:
HTTP 401.1 - Unauthorized: Logon Failed
To resolve this issue execute the following PowerShell command to disable the loop-back check
New-ItemProperty HKLM:\System\CurrentControlSet\Control\Lsa -Name
"DisableLoopbackCheck" -value "1" -PropertyType dword