1. Determine how much home you can afford. Based on your income and any long term debt, know the maximum payments you can be certain of making comfortably. Home loans are serious business, and buying too much home can build a mountain of debt. Make sure you can make your payments comfortably; it shouldn?t be a burden. Locate a mortgage calculator online that allows you to enter your income and it will tell you how much mortgage you can afford.
2. Make a budget. Do you know where your money goes? How much is spent on unnecessary things? How much are your utility bills? If you are buying a larger home, the utilities will most likely go up. Will you be able to make payments on time and pay the larger bills? Does the home you are considering require repairs or upgrades? This tip recommends you figure these things into a budget to avoid overspending.
3. Gather documentation. You will be required to show quite a bit of documentation before you mortgage is approved such as IRS returns for past years, W-2?s, proof of current salary, assets, debts, records regarding child support or alimony and the like.
4. Become educated about mortgage types and rates. The tip is very important. If you know the meaning of the mortgage ?lingo?, the types of loans available and what the current rates are, you will be in a much better position to negotiate your home loan. Start studying your options well before you plan to buy!
5. Consider a shorter loan term. The goal is to pay off the home mortgage in the least time possible while allowing enough money to live comfortably. You can save tens of thousands of dollars in interest payments!
6. Don?t forget you will have to pay closing costs. Many people forget to include these costs into their plans and end up coming up short. Find how much to expect from your broker or real estate agent.

We hope these tips have helped you on the road to making your mortgage experience easier and less costly. Learn all you can before applying for a loan.