The 5 Most Common Mortgage Mistakes (and How to Avoid Them)

Getting a mortgage is one of the biggest financial decisions you'll ever make—and even small mistakes can cost you thousands over time. Whether you're buying your first home or refinancing, it's essential to understand what not to do.

Here are the 5 most common mortgage mistakes—and how you can avoid them.

1. Not Getting Pre-Approved Before House Hunting

The Mistake:Many buyers start shopping without knowing what they can realistically afford. This can lead to disappointment—or worse, wasting time on homes that are out of reach.

The Fix:Get pre-approved, not just pre-qualified. A pre-approval shows sellers you're serious and gives you a clear idea of your budget, interest rate, and loan terms.

2. Taking on New Debt During the Loan Process

The Mistake:Applying for a car loan, opening new credit cards, or even financing furniture while you're in the mortgage process can affect your credit score and debt-to-income ratio.

The Fix:Avoid any major financial changes after your loan application is submitted. Lenders do final checks before closing, and new debt could delay—or derail—your approval.

3. Focusing Only on the Interest Rate

The Mistake:A low rate is great, but it’s not the only thing that matters. Many buyers overlook fees, closing costs, points, or the long-term cost of adjustable-rate loans.

The Fix:Ask your lender for a Loan Estimate and compare the APR, not just the interest rate. The APR includes fees and gives you a better idea of the actual cost of the loan.

4. Draining Your Savings for the Down Payment

The Mistake:Putting every penny into your down payment can leave you house-poor—with nothing left for moving costs, repairs, or emergencies.

The Fix:Keep a healthy emergency fund. Consider programs that allow lower down payments and explore down payment assistance if you qualify.

5. Skipping the Fine Print (or Going It Alone)

The Mistake:Some buyers sign without fully understanding loan terms, penalties, or whether the mortgage is fixed or adjustable.

The Fix:Work with a trusted mortgage professional and ask questions. Your agent and lender should help you compare options and read the fine print so you avoid costly surprises.

Final Thought

Mortgages can be confusing—but they don’t have to be risky. With the right guidance, clear communication, and a little preparation, you can avoid common pitfalls and move into your new home with confidence.

Need help finding a lender or understanding your mortgage options? I’d be happy to point you in the right direction!