Applying for a mortgage is the most important financial process of your life. Yet most people make avoidable mistakes that cost thousands of euros or directly prevent them from getting financing. Here are the 10 most frequent and how to avoid them.
The 10 errors and how to avoid them
Error 1: Going to the bank without preparing documentation
❌ Going without payslips, income declaration, property note.
✅ Prepare all documentation before the first meeting.
Error 2: Comparing only the interest rate
❌ Choosing the mortgage with the lowest nominal rate without looking at APR or tied products.
✅ Always compare by total APR including insurance and tied products.
Error 3: Requesting the maximum possible
❌ Requesting 80% even if you don't need it, increasing the payment and risk.
✅ Only request what you need and can comfortably afford.
Error 4: Not calculating total costs
❌ Only calculating the 20% down payment, forgetting fees (6-15% additional).
✅ Always reserve 30-35% of the purchase price for down payment and fees.
Error 5: Accepting the first bank offer
❌ Signing with your usual bank without comparing other offers.
✅ Negotiate with at least 3-5 banks or use a broker to do it simultaneously.
Error 6: Applying for credit before the mortgage
❌ Financing a car or vacation right before applying for a mortgage.
✅ Don't apply for any credit in the 6 months before your mortgage application.
Error 7: Not reading the FEIN
❌ Signing without understanding the European Standardized Information Sheet.
✅ Read the FEIN carefully, you have 10 days and the bank is obliged to give it to you.
Error 8: Ignoring tied products
❌ Accepting life insurance, home insurance or pension plans without calculating their real cost.
✅ Calculate the total cost of tied products over the entire loan life.
Error 9: Not keeping a savings cushion
❌ Spending all savings on the down payment and having no reserve left.
✅ Always keep 3-6 months of payments as a safety cushion.
Error 10: Doing the whole process alone
❌ Negotiating with the bank without knowledge or mortgage experience.
✅ Use a mortgage broker: it helps you avoid overpaying and gives you access to better conditions.
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