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A mortgage is likely the most significant financial transaction you’ll face in your lifetime, so it’s important to educate yourself thoroughly before applying for a mortgage. There are some common mistakes that many people make, and those mistakes can cost money.

Choosing a Mortgage Lender

Selecting a mortgage lender is the most important choice you’ll make at the start of the application process. Choose a lender you can trust, rather than the lending institution that offers the lowest rates—the application and lending process will go much more smoothly if you choose a lender you feel comfortable with. The rates and terms of your mortgage are important, but if you choose an unscrupulous lender, your chances of getting the rates they advertise aren’t good.

Closing costs are an inevitable fact of life when buying a house. You can expect to pay a percentage of your home’s purchase price in closing costs before you can call it your own home. These costs range from home inspection fees to loan arrangement fees to title insurance. Each of the costs is necessary, but many of them are negotiable. Here are some of the most common closing costs, and how you may be able to save on them.

Start by looking over the final settlement sheet on your home purchase to see if there are any fees or costs that you don’t understand. Don’t be afraid to ask for an explanation of the fee.

Refinancing can help you in many ways as long as it is done for the right reason. If you are considering refinancing, you will want to know what it can do for you and how. One way that refinancing can help you is to help you grow your equity, although it cannot do it without some help from you.

What is equity?
The equity in your home is the value of your home (not the sales price, but the actual value) less the money that is owed on the property. This value can be cashed in on in the form on home equity loans, which offer lower rates than credit cards or personal loans, and will allow you to finance things like a wedding, a new car, or a much needed vacation if you so desire.