7 Home Loan Mistakes That Cost Borrowers Money
Avoid these common mortgage pitfalls that can add thousands to your home buying costs:
- Not Shopping Around: Compare at least 3-5 lenders for best rates
- Ignoring Credit Score: Improve score by 50+ points to save $50,000+ over loan life
- Skipping Pre-approval: Get pre-approved to strengthen your offer
- Choosing Wrong Loan Type: FHA vs Conventional can impact PMI costs
- Overlooking Closing Costs: Budget 2-5% of home price for closing expenses
- Not Considering Points: Buying points can reduce long-term interest
- Rushing the Process: Take time to understand all terms and conditions