o consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if

With interest rates now at an all time low, many Americans are looking into buying their first home. Applying for a mortgage while the rates are still low is a great way to save money, but four simple mistakes can lead to thousands of lost dollars. These four common mistakes and how to fix them are:

1. Automatically Picking the Lowest Rate – Many home owners simply pick the lowest interest rate. The lowest interest rate isn’t always the best deal, though. Many lenders will offer lower interest rates; however, they may also charge 2%-3% of the entire loan down to qualify for the low advertised rate. That means you could be paying $2,000-$5,000 or more down for the lower rate on top of paying the lender’s commission. When refinancing it’s just as important to look at the overall costs of refinancing, and not just a lower interest rate. Some lenders don’t have you in mind and only want to make their commissions. Make sure your lender is willing to answer all of your questions. A qualified lender wants to put you in the best loan and will make sure refinancing is right for you.

2. Not Planning for Closing Costs – On the closing day for your new home, there will be closing costs. You will be expected to write a check for lenders’ fees, attorneys’ fees, taxes, title insurance, homeowners insurance and mortgage points. Unfortunately, these costs can accumulate anywhere from 2% to 7% of the purchase price of the home. The best way to get an estimate for closing is a good-faith estimate from your lender and to have that amount available in cash or in savings until closing. It’s also a good idea to have three months of living expenses put away in order to live comfortably when you’re moving into your new home.

3. Borrowing Too Much Money – Many first time home owners take out the biggest loan their budget can handle, figuring that their wages will increase as time goes on making the loan payments easier to pay. Many people don’t take into consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if

r interest rates; however, they may also charge 2%-3% of the entire loan down to qualify for the low advertised rate. That means you could be paying $2,000-$5,000 or more down for the lower rate on top of paying the lender’s commission. When refinancing it’s just as important to look at the overall costs of refinancing, and not just a lower interest rate. Some lenders don’t have you in mind and only want to make their commissions. Make sure your lender is willing to answer all of your questions. A qualified lender wants to put you in the best loan and will make sure refinancing is right for you.

2. Not Planning for Closing Costs – On the closing day for your new home, there will be closing costs. You will be expected to write a check for lenders’ fees, attorneys’ fees, taxes, title insurance, homeowners insurance and mortgage points. Unfortunately, these costs can accumulate anywhere from 2% to 7% of the purchase price of the home. The best way to get an estimate for closing is a good-faith estimate from your lender and to have that amount available in cash or in savings until closing. It’s also a good idea to have three months of living expenses put away in order to live comfortably when you’re moving into your new home.

3. Borrowing Too Much Money – Many first time home owners take out the biggest loan their budget can handle, figuring that their wages will increase as time goes on making the loan payments easier to pay. Many people don’t take into consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if

ions. A qualified lender wants to put you in the best loan and will make sure refinancing is right for you.

2. Not Planning for Closing Costs – On the closing day for your new home, there will be closing costs. You will be expected to write a check for lenders’ fees, attorneys’ fees, taxes, title insurance, homeowners insurance and mortgage points. Unfortunately, these costs can accumulate anywhere from 2% to 7% of the purchase price of the home. The best way to get an estimate for closing is a good-faith estimate from your lender and to have that amount available in cash or in savings until closing. It’s also a good idea to have three months of living expenses put away in order to live comfortably when you’re moving into your new home.

3. Borrowing Too Much Money – Many first time home owners take out the biggest loan their budget can handle, figuring that their wages will increase as time goes on making the loan payments easier to pay. Many people don’t take into consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if

osing is a good-faith estimate from your lender and to have that amount available in cash or in savings until closing. It’s also a good idea to have three months of living expenses put away in order to live comfortably when you’re moving into your new home.

3. Borrowing Too Much Money – Many first time home owners take out the biggest loan their budget can handle, figuring that their wages will increase as time goes on making the loan payments easier to pay. Many people don’t take into consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if

o consideration the elevated costs of utilities and extra homeowners’ insurance resulting from homeownership. Many lenders almost always let borrowers over-borrow because they know the lenders will cancel vacations and sacrifice other things before defaulting on their mortgage. So, never borrow at the top of your budget and always keep in mind what you can afford given the worst case scenario.

4. Not Getting Preapproved for a Loan – Many people don’t realize the leverage they have if they have been preapproved for a loan. Preapproval is a lender telling you how large of a loan you can take out based on salary, debt, down payment, tax returns, pay stubs, and other financial information. Offers made by home-seekers with a preapproved loan ready to go carry more weight than offers that don’t have a preapproved loan.

By following these four simple guidelines and researching different mortgage options, you’ll be well on your way to finding your perfect loan.