Taking out a mortgage to finance your dream home can be the best financial decision of your life or the biggest mistake you have made. The good news is that with careful planning you can take the right steps and avoid making mistake with a bad deal that costs you hundreds of thousands of dollars.

To help you out, here are some of the common mistakes made when getting a mortgage that you should avoid at all costs.

Ignoring the APR
Do not let the rates mentioned in advertisements fool you. Do remember to check the lender’s discloser forms to find out all that they are really charging.

In fact, a low-interest rate might be accompanied by so many additional fees such as an origination fee. High closing costs also increase the total cost of your mortgage payments. So, do not ignore examining the APR in detail to make sure you are really getting the best deal.

Not studying other costs of owning a home
Buying a home comes with many other expenses as part of the whole deal. This includes maintenance charges of the entire house that usually cover things such as fixing the roof and furnace or replacing any old appliances that are worn out. All of this can run from a few hundred dollars to several thousand.

Experts recommend that you keep aside at least 1% of your home’s total cost as a yearly maintenance amount. Not calculating this amount for the next couple of years while applying for a mortgage can be a dangerous thing indeed as you will not really know what your house is costing you.

Applying for new credit
A mortgage loan in itself is a huge credit that you are applying for. So, do not make the mistake of applying for any other credit during that time such as a car loan or a new credit card.

Your credit might be top-notch and make you certain that your mortgage application will go through; however, a single additional check on your credit that shows you have taken on more loans might make the lender suspicious and can even cause them to reject your application.

Changing jobs
If you have been considering a career change, hold up until your mortgage comes through. Changing jobs while the paperwork is still ongoing might make you appear like an unsteady borrower.

If the new job is absolutely one you must take up, request your new employer to let you join once your mortgage gets approved.

Going for exotic mortgages
There are exotic mortgages that can end up complicating the whole deal for you. Do not fall for these. Exotic mortgages might see you pay less in the initial years but can really leave you troubled with higher payments in the future.

Keep things simple and apply for a conventional mortgage that gives you your dream home minus the sleepless nights.