• Looking for a house without knowing how much you can afford to pay

• Assuming that the FHA will protect you from buying a house with major defects

• Assuming that stretching your house-purchasing ability to the limit will maximize your wealth over the long term

• Purchasing a house with someone not your spouse without a written agreement

• Buying a manufactured house through a dealer with a package that includes house, installation, site and financing

• Allowing the purchaser of your existing house to assume responsibility for your existing mortgage without a release of liability

• selecting the loan provider offering the best price over the telephone or in the newspaper

• assuming the rate quotes from loan providers are always given in good faith

• assuming that the rates quoted in the media are the rates at which you can borrow

• soliciting price information without giving the loan provider all the information about your loan, may affect the price

• assuming that you can shop lender A today and lender B tomorrow

• assuming that the loan provider who offers the best deal at 0 points also offers the best deal at 3 points

• assuming that a “discount mortgage broker” will cost you less

• selecting a lender without knowing any of the lender charges except points, then trying to negotiate other charges afterwards

• assuming that it never pays to shop for title insurance

• assuming that since finance charges are deducted from the amount financed, you won’t have to pay for them

• responding favorably to a solicitation without checking other options

• confusing a no-cost mortgage with a no-cash mortgage

• Assuming that paying off credit cards on which you have been delinquent will improve your credit score

• Assuming that because you are an authorized user of a credit card and not responsible for the payments, you can’t be hurt if the responsible party does not pay

• Assuming that shopping multiple loan sources will adversely affect your credit rating

• Confusing "qualification" with "approval"

• assuming that the amount of interest you pay over the life of the mortgage is more important that the interest rate

• assuming that paying points is a loser

• assuming the amount of cash you put into the transaction is the same as the down payment

• assuming that a “no closing cost loan” is a good deal

• assuming that the cost of mortgage insurance is the premium rate which is comparable to the interest rate

• assuming that ARMs are to be avoided unless you need one to qualify

• assuming that negative amortization is to be avoided at all costs

• assuming that you must pay extra to convert a monthly payment loan into a biweekly payment loan

• making a large down payment on a FHA loan

• neglecting to ask about the second mortgage lender’s policy on subordination

• neglecting to ask whether your loan has a prepayment penalty, and verifying the answer on the Truth in Lending disclosure statement

• using the APR to assess the cost of different mortgage, even though you expect to be in your house only a few years

• believing it when you are told that you will save money with a simple interest mortgage

• if you have a simple interest mortgage, not making your monthly payments early

• believing that an interest-only loan is less costly to amortize, or carries a lower interest rates than the same loan without the interest-only option

• believing that on an interest-only ARM the initial rate holds for as long as the interest-only period

• selecting a flexible payment ARM without considering the risk of serious payment shock down the road

• assuming that the rate index used by an ARM is all you need to know to assess the ARM

• Allowing the price to float on a home purchase transaction

• accepting verbal assurance that the loan has been locked with the lender

• selecting a lock period that is not long enough for the lender to finish processing the loan

• believing that fixed-dollar lender fees are covered by locks

• consolidating existing debts in a new second mortgage without considering the implications for your ability to terminate mortgage insurance, refinance your first mortgage, etc

• raising needed cash with a new second mortgage or with a cash-out refinance, without comparing the costs of the two alternatives

• paying for mortgage insurance without considering whether the alternative might be a less expensive option

• raising cash by borrowing against a 401k rather than by taking a second mortgage

• neglecting to ask about the second mortgage lender’s policy on subordination

• refinancing periodically as a way to raise cash

• taking a no-cost refinance when you expect to be in the house for a long time

• refinancing into a bi-weekly at a higher interest rate for the purpose of reducing total interest payments

• assuming that a refinance is a good deal if it results in significant savings over your existing mortgage

• viewing refinance and prepayment as alternatives

• responding to a solicitation for a 1.25% mortgage

• taking out a mortgage for the express purpose of getting a tax deduction

• failing to check if the lender is crediting payments properly

• assuming your credit won’t be badly damaged if you skip just one payment

• agreeing to cosign for a friend or relative without considering all the implications

• when a financial reversal endangers your capacity to pay the mortgage, doing nothing until the lender calls about your delinquency

• throwing out mortgage servicing statements after a year or two