Mistake #1: Not Comparing Multiple Lenders
Many borrowers make the mistake of going with the first lender they find. Interest rates, fees, and terms can vary significantly between lenders. Always compare at least 3–5 offers before committing.
Mistake #2: Borrowing More Than You Need
It can be tempting to borrow extra "just in case," but every dollar you borrow accrues interest. Calculate exactly what you need and stick to that amount to minimize your total cost.
Mistake #3: Ignoring the Fine Print
Origination fees, prepayment penalties, and late payment fees can all add to your total cost. Read the loan agreement carefully and ask about any fees you don't understand.