Buying a home is a very big decision, and likely one of the largest purchases you’ll ever make. Like most important decisions you make in life, this one also takes some planning. There are multiple choices involved throughout the process and it can often be easy to slip up. This doesn’t mean that the process can’t be a smooth one that leaves you feeling relieved rather than in pain. Getting a mortgage is about more than having your offer accepted and signing on the dotted line. In this post, we are going to reveal our top tips for the mortgage shopping process and how you can use them to your benefit.

Tip #1: Choosing Your Mortgage Lender

It is important to find a mortgage lender early in the early process so that you have a relationship with him or her when you find your dream home. In doing so, you’ll be able to kick-start the mortgage process by getting pre-approved. Even if interest rates and loan terms are similar across different lenders, final costs and fees might not be. You should inquire to them things such as title insurance and document prep fees. Lenders are eager for your business and some even offer a cash incentive for choosing them over another.

Tip #2: Check Your Credit Score

Be sure to check your credit before beginning. This sounds like an obvious part of the mortgage process but you’d be surprised the number of people that approach mortgage lenders without having any idea of their credit score. Mortgage lenders are going to go through your credit report with a fine-toothed comb, and they’re going to make decisions based on how creditworthy you are, including whether to offer you a loan at all or at what rate. If you are not keeping track of your credit score first, you risk losing money, or your potential dream home.

Tip #3: Do Not Apply for Credit Simultaneously

When you’re applying for a mortgage, your credit is under serious scrutiny. Something as simple as applying for a credit score can cause your score to dip temporarily due to the application credit check. You are then left with a hard inquiry on your account for about 12 months. The same goes for closing an old account. Doing this affects the amount of credit you have available, which can negatively affect your overall score. (Tip: For car or home loans, all credit inquiries made within about two weeks of each other count as one inquiry, so if you’re shopping around for mortgage brokers, be sure to submit all of your loan applications around the same time.)

Tip #4: Don’t Skip Pre-Approval

Pre-approval means going through a mortgage application process with a lender—filling out paperwork and verifying income in order to be pre-approved for a loan even before you’ve found a house to bid on. It’s a great opportunity for you to to find out how much you are able to take on. This includes useful information such as an interest rate which is beneficial while you are house hunting. Plus, being pre-approved is a good way to tell a potential seller that you are serious.

Tell your mortgage lender that you’d like to get pre-approved. You’ll have to provide paperwork such as pay stubs, W-2s, bank statements, tax returns and relevant loan documents. Once you’ve had an offer accepted on a house, all you have to do is give the lender the address and details of the offer to move on with the mortgage process.

Tip#5: Be Sure to Read the Fine Print

A mortgage is about more than just a monthly payment. It’s about the total amount you’ll pay over the life of the loan and your interest rate throughout. Make sure you understand your loan and the payments from beginning to end. Also, many lenders require you to pay property taxes and insurance up front. This could be a pretty large check. Do not wait until last minute to think about fees. Be sure to understand all of your documents and ask any questions you may have.

We understand that the process of shopping for a mortgage can be challenging and time consuming. However, through careful preparation and the use of some of the tips above, you are sure to have a much smoother process overall. Let us know if you try out any of these strategies and how they work out for you!