When you begin to search for a new home, you might start by counting how many bathrooms and bedrooms you need. However, there are other more glaring factors you need to consider before you begin to buy a home. Here are the top four biggest mistakes you should avoid when applying for a home mortgage loan.

The House Is Realistically Out Of Your Budget

While lenders are legally required to approve mortgages no larger than 35 percent of the household income, you should still aim for a mortgage of less than 28 percent. And just because you have been preapproved for a large mortgage, that doesn’t mean you need to buy one at that limit. Many households with mortgages above 30 percent of their income find that their mortgage payments may leave them strapped for cash. What happens when there is an emergency?

Not Looking For The Best Rates and Loans

Far too many homebuyers look into homes before they pick the “best” one, however, the same doesn’t go for when shopping for a mortgage. Other lenders will have other rates, so don’t lock yourself into one specific lender just because it’s all you know. Comparison shopping (comp-shopping) different lenders, or working with an experienced mortgage lender, will give you the best advantage when it comes to obtaining a mortgage loan that works best for you.

Not Knowing Your Credit History

The largest determining factor when buying a home is your credit history. Credit bureaus assign scores based on your borrowing history. You can check your credit score through the various bureaus, so it’s smart to do that before beginning to buy a home. Even missing one payment on a bill can negatively impact your credit, and the lower your score, the less likely you are to be approved for a mortgage loan.

Changing Your Credit ASAP

Despite popular belief, paying off old bills and canceling credit cards right before you apply for a mortgage loan can hurt your credit. Some borrowers view closing out credit cards will help with their score. However, this can be detrimental. Before applying for a loan, you should consult with an experienced mortgage lender. They will help advise you on what you should and shouldn’t do when it comes to your outstanding debt.

Buying a house involves more than finding the right home. You need to take all of your financing options into consideration, as it can save you thousands of dollars in the long run. When it comes to purchasing a new home, financing can be the most stressful part of the process. Consider working with a trusted home mortgage lender to help you find the best loans and rates that are available to you.