Everyday people have their mortgage loan turned down because of one or more of these common mistakes. By taking a few minutes to familiarize yourself with these "Top 10 Worst Mortgage Mistakes" you can prevent being declined and save thousands on your mortgage.

Mortage Mistake #10

Not Knowing How Much of A Down Payment You Can Afford
It’s important to know how much money you can pay as your down payment and in closing costs before you apply for your mortgage. The bigger the down payment the better rates and terms you’re likely to get. At the same time you also need to stay within your means and comfort level.( Note: Don't get stuck rennting for life because you think you need to save up a huge downpayment - if you can afford a big downpayment you may not get the best deal but it will usually still be better than renting)

Mortage Mistake #9

Working With A Mortgage Broker Who Has A Poor Performance Record
Industry insiders know that the most common reason that a sale fails to go through is that the mortgage fails to go through. Ask your mortgage broker about her/his performance guarantee.

Mortage Mistake #8

Not Understanding The Process
Most of us don’t shop for a mortgage very often. As a result it isn’t something we become familiar with. Work with a mortgage broker who will take the time to answer your questions and uses terms you understand.

Mortage Mistake #7

Working With A Single Lender
Not all lenders have a range of options when it comes to loans. What if that Lender doesn’t offer the type of mortgage you need? Or worse yet, what if you need to change loan products after you’ve started the process? Working with a mortgage broker who has many lendors enables you to address these issues without starting the process over again.

Mortage Mistake #6

Making Large Purchases Prior to Applying for a Mortgage
Many people think that it is in their best interest to get large purchases "out of the way" prior to applying for their mortgage. As total debt is a key element in determining the loan amount and rate you qualify for it is best to wait until after your home purchase has closed to make any big purchases. Other things to avoid just prior to getting a mortgage include: changing jobs, change banks, and closing credit card accounts.

Mortage Mistake #5

Over Shopping Your Loan
Each time you call a lender seeking the best possible rate and terms you have your credit report pulled. Every time your credit report is pulled you take a hit on your credit score and risk possibly decreasing your chances of getting the best rate and terms. Experts recommend that you select a mortgage broker with a number of investors so they can shop the loan while only pulling your credit report once.

Mortage Mistake #4

Hiding Things From Your Mortgage Broker
Most of us have experienced times of financial difficulty at some point. While it can be embarrassing to admit sometimes, your mortgage broker is there to help you get loan approval despite such issues. Your mortgage broker can only help you with those things that they are made aware of.

Mortage Mistake #3

Making Late Payments
Late payments, especially within the last year prior to application, can be very detrimental to the rate and termsyou are offered. And can even prove the difference between being approved or disapproved. While this might seem obvious advice, always pay your bills on time.

Mortage Mistake #2

Having Too Much or Too Little Credit Card Debt
Credit cards are a convenient way to make purchases, but if not paid off or balances kept low you might find it more difficult to get the best rates and terms on your mortgage. Keeping your total debt as low as possible, while having moderate available credit and good credit payment history helps you get the mortgage with the best rates and terms.

The #1 Biggest Mortage Mistake

Not getting all the information
(a.k.a Paying too much in Interest and in Closing Costs)
It is important to learn the total cost of your mortgage loan, both at closing and for the life of the loan. While mortgages can look a lot alike there can be subtle differences which can save or cost you thousands of dollars. Get all the facts and know what to expect. Our guide will explain all the closing cost charges and what you can do to lower them - see more about our guide "Closing Costs Insider Secrets" - its guaranteed to save you at least $200 - or your money back.

Mortgage regulations have changed significantly over the last few years, making your options wider than ever. Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.

Get the Right Information - Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you be informed about the factors involved.

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