11 Deadly Mistakes When Applying for a Mortgage

6. 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 risk decreasing your credit score and thus possibly decreasing the likelihood of getting the best rate and terms.  Experts recommend that you select a mortgage broker with a number of investors and do your shopping with her/him.

7. Hiding Things From Your Mortgage Broker

   Most of us have experienced times of financial difficulty at some point.  While it can be embarrassing to discuss issues like this, your mortgage broker is there to help you get loan approved despite such issues.  Your mortgage broker can only help you with those things with which s/he is aware.

8. Making Late Payments

   Late payments, especially those within the last year, can be very detrimental to getting the best rate, terms and even the difference of being approved at all.  While this might seem like unnecessary advice, ALWAYS pay on time.

9. Over Using Credit Cards

   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 helps you get the mortgage that best meets your specific needs.

10. Co-signing On Someone Else's Loan

    While it can be a great service to a friend or loved one, signing to guarantee someone else's loan is often a big headache for the co-signer.  Before co-signing you decide if you're willing and/or able to assume the liability.

11. Not Getting All The Facts

    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.