1. Not knowing how much money you can really put down
The first step in finding a house is figuring out how much you can afford to spend. It's very important to know how much you can afford to pay in down payment and closing costs before you apply for your mortgage. The more you're able to put down the better rates and terms you're likely to get. At the same time you also need to stay within your normal standard of living.

2. Not knowing or understanding the mortgage process
How many mortgages did you take last week? If you are like most people, probably none. In fact, most people don't shop for a mortgage more than a few times in a lifetime. Therefore, it is not a process we are very familiar with. It's very important to work with a mortgage broker who will listen and answer all your questions.

3. Working with a lender who has too few investors
When it comes to investors, not all lenders have a full range of options. What if he only has one or two investors and they don't offer the type of mortgage you need? Worse, what if you need to change your loan system AFTER you started the process? If your mortgage broker has many investors will allow you to face these issues without having to go through the whole process again.

4. Buying an new car or purchasing a big item before you apply for a mortgage
A lot of people think that it is in their best interest to complete large purchases before applying for their mortgage. One of the key components in determining the amount of home you can qualify for is your total debt. Big purchases should therefore be done after your house purchase has closed. In fact, you will be in a much better position to assess your needs after you purchase your house. So many things can go wrong...

5. Over shopping your mortgage loan
When a new possible lender needs information on you, he will have your credit report pulled. The problem here, is that every time your credit report is pulled, there is a possibility that your credit score will decrease. If your credit score decreases, your chances of getting the best rate and terms are also decreasing. Mortgage experts recommend that you choose a mortgage broker who has a good number of investors and that you limit your shopping to that broker.

6. Not revealing all the facts to your mortgage broker
Who hasn't experienced some moments of financial difficulties at some point in the past? While it may be embarrassing to reveal such issues to your mortgage broker, you have to keep in mind that he/she is there to help you to get loan approved... despite such issues. Your mortgage broker will certainly not be able to help you with those issues if he knows nothing about them.

7. Not paying on time
Not paying on time, or late payments, in particular those done within the last year, can be very detrimental to obtaining the best loan rates, terms and, in some cases, can even make the difference between being approved or not. Even if this looks like unnecessary advice, always, and we mean ALWAYS, pay your bills on time.

8. Credit cards
Credits cards are used everyday by a majority of people to make purchases, they are convenient, secure and easy to use. When you apply for a mortgage if your credit card balances are not paid off or kept low, you might find it more difficult to get the best rates and terms on your mortgage. If you keep your total debt as low as possible, it will help you get the mortgage that best meets your specific needs.

9. Too many credit cards
When a lender studies your mortgage application, he basically wants to find out how much money you can borrow without putting yourself in a default position. The amount you can "borrow" with your credit cards is therefore an important factor - event if you don't use your credit cards. Why? Because you could... The total amount you could "borrow" on your credit cards should be kept low.

10. Cosigning on a friend's or loved one's loan
Your friend or your loved one will certainly be happy, but when you give such a guarantee to someone else, you are, in effect, assuming the liability on that loan. Your total loan potential will be lesser than if you didn't cosign.