Here are a few Pitfalls

1. Have Too Much Credit:
   Just wait on those big purchases you’ve been planning until after you buy your home. Too much credit is almost as bad as no credit or sometimes bad credit. Lenders focus on how much credit you have available to you, just as much as on whether or not you pay your bills on time. Auto loans and credit card debt that is excessive will get you turned down for a mortgage. **
   
   
2. Lie on Your Loan Application:
   Be honest with your income; don’t add on to it. If you fudge a few things on your loan application it can come back to bit you. When the bank finds out, they can call your loan due and payable. Besides, it is a federal offense. Also, answer all the questions completely. Don’t leave any blacks on your loan application. Lenders at times have been known to stretch the truth to get a customer approved. But it’s your tail, you may end up paying the price with a mortgage that is too high for you. **
   
   
3. Choose the Wrong Mortgage:
   Check all your options, see how your choices line up to each other and do the math. Look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties. **
   
   
4. Confuse "Pre-Qualified" & "Pre-Approved” with a Loan Commitment:
   Not all lenders apply the same definition to each expression. Have your lender define these terms for you. A loan commitment is much more defined that getting pre-qualified or pre-approved. **
   
   
5. Hide If You Can't Make Your Payments:
   Lenders become the enemy when you give them no other choice. They have options available to them that can keep you from loosing your home. If you avoid talking to your lender there are no strings thaey can pull to help you out of a sticky situation. Answer your lenders phone calls and letters. They don’t want to see you get into a foreclosure. **
   
   
6. Skip a Home Inspection:
   Home inspectors examine houses from ground up. Inspectors can give you an accurate report of the condition of the property. Spending the few hundred dollars to have your home looked at by a trained professional is wise. They know just where to look. If you do this yourself you are taking a big risk. What condition is the roof in? How about the plumbing or electric? Hire an independent home inspector. **
   
   
7. Hire Just Any Agent to Sell Your House:
   There are a few objective questions you should ask a prospective realtor. Does he/she specialize in your neighborhood? Are they a top producer? How do they plan to market you current home? What will they do to make your home more attractive to buyers? What are there fees? Try not to hire a friend or relative unless they can answer these questions to your satisfaction. **
   
   
8. Burn Your Mortgage:
   When you make your last house payment the place is now yours. It’s a beautiful feeling. Like others have done you may be planning a mortgage burning party. Don’t torch the original document. File your loan document in a safe place. Make a copy of it and burn that instead. **