4. No planning for expenses: This is one of the common mistakes found among most of the loan borrowers. Planning your expenses is mandatory. Ask and clarify your doubts that you have in your mind about the expenses to your lender or bank. Many homebuyers are not aware of the fact that they need to have money to pay for the closing costs. In addition, home inspection fee, appraisal fee and other lender fees which they need to pay from their own pocket. It is always better to ask your lender about all these fees before closings, so that you can be well prepared.

Home buying alone is not all; you need to keep money for future expenses as well, such as home renovations, higher heating bills or cooling bills, home maintenance and furniture.

5. Lying on your loan application: Have you ever heard of a “liar loan”? The borrowers who have a tendency to lie and inflate their income to buy a large house take liar loans. There are many cases when an individual took a liar loan without even having a job. Exaggerating your income on a home loan application or telling other untruths are considered to be a national offense.

It is often seen that the loan officers are known for lying or stretching truths to get one client approval. But the fact is at the end it’s the borrower who have to pay for lenders lie, often in the form of monthly payments which they cannot afford. So never ever sign your name to a loan application that is not completely filled.

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