Most banks and mortgage lenders generally offer the same types of mortgages with varying interest rates. Because there is so much competition, mortgage rates tend to vary only slightly. Depending on the amount of your home loan that slight difference could wind up saving you anywhere from $50-$100 and up per month. So it pays to shop around for your mortgage.

It may also be a good idea to "buy" points with your mortgage as this will help bring down your interest rate and you can usually deduct the points from your taxes the year you buy your home, so you don't have to wait 15-30 years to deduct it from the interest you pay that is spread out during the duration of your mortgage. Please consult with your financial advisor or mortgage banker to see purchasing points is an appropriate option for your circumstances. Keep in mind that if you do decide to buy points on your mortgage, that money is due up front at closing and thus closing costs can become expensive. Generally, you can estimate your closing costs to be in the area of 2% of your mortgage loan.

• When filling out your mortgage application, make sure to fill in every possible space. The more questions you answer the faster your mortgage will be processed, leaving less of a chance for your mortgage being returned to your loan officer as incomplete.
• When applying for a mortgage, lenders like to see at least 10% of your annual income in a savings account (in addition to the down payment that you will be making).
• If you have had bad credit but was able to re-establish it within the last year or two a lender might still consider your mortgage application.
• If you have credit card debt and/or student loans, mortgage lenders tend to prefer that they total less than 20% of your annual income. For example, if you make $80,000, mortgage lenders don't want your total debt to be more than $16,000.
• Know your upfront costs. Put aside the money so that you have it for later. Check our mortgage calculators and Buyer's Guide to estimate your closing costs.
• Use our mortgage calculators and figure out how much you can afford before you begin to look at apartments. Having a good perspective on your mortgage costs is key to understanding the price ranges of apartments you should consider.
• If you put down 20% or more of the purchase price of the apartment, you will not be required to obtain Private Mortgage Insurance (PMI), which can save you $25-$50 or more per month. (You will still need to take out a Home Owners Policy)
• Don't be denied a home loan because of mistakes on your credit report. Something as small as a wrong birth date on your report could cause your mortgage application to be denied. Know your credit report in advance so that when the mortgage lender asks about something questionable on your report you'll be well prepared.