A Guest Post by Bashir Phillip from Trinity Insight .

For most Americans, purchasing a house requires taking on a mortgage loan. A Mortgage can be a very complex and costly financial investment and in order to avoid making common mortgage mistakes a borrower should be reasonably knowledgeable before committing to a contract.

Choose Your Lender Carefully

Choosing a lender that you trust and are comfortable with is a lot more important than picking the one that offers the lowest interest rate. Unscrupulous lenders have no problems in offering attractive rates to draw customers in and then surprise them with hidden costs later on in the life of the mortgage. That "no fees, no down payment mortgage" at first glance may look great, but it often times comes at the cost of higher interest rates and hidden fees. Choosing a reputable lender will ensure that you don't get any unpleasant surprises down the road.

Research your Options

When looking around at different mortgages (ARM, FHA, HELOC, reverse mortgage, etc) and mortgage rates it is especially important to consider the length and structure of the mortgage.

While in today's turbulent housing climate it is generally recommended that you obtain a conventional 30 year fixed rate mortgage due to its safety and reputation as being the mortgage that is least likely to cause problems in the future, in certain situations going with an adjustable rate mortgage can provide numerous financial benefits for borrowers. The value of an adjustable rate mortgage largely depends on how long you plan to own your home. Adjustable rate mortgages are far more valuable in the short term rather than in the long run. Currently, Five-year adjustable-rate mortgages are averaging 4.59% and one year adjustable-rate mortgages at 4.62% with both rates at a 3-month low. If you don't plan on living in your home for more than six years, it is usually a good idea to opt for an adjustable rate mortgage, as the interest rate will generally be lower than a fixed rate mortgage over the period of your occupancy. However, check to make sure that your mortgage agreement does not contain a penalty for prepayment or negative amortization in which case the unpaid interest would be added to the balance of your loan.

Check for Hidden Fees

All lenders are required by law to supply a mortgage applicant with a Good Faith Estimate within three days of processing their application. Once you receive your estimate carefully check it for hidden fees that can often add several hundred dollars to your closing costs.