Everyone dreams of homeownership. Homes are a big investment, and any homeowner should be proud to have one. Most people have to apply for a mortgage so they can afford to buy a home. There are some things you should know when you are considering a home mortgage and the following information can help.

Avoid getting into new debts while you are getting a home mortgage loan. When you have a low consumer debt, you can get a mortgage loan that’s higher. High consumer debt could lead to a denial of your mortgage loan application. Carrying high debt can result in a higher interest rate on your mortgage and cost you more money.

Even if you are far underwater on your home, HARP might be an option for you. Before the new program, it was difficult for many to refinance. How can it benefit you through lower payments and an increased credit score?

Reduce or get rid of your debt before starting to apply for mortgage loans. If you have little debt, you’ll be able to get a larger mortgage. When you have a lot of debt, there is a good chance your application for a mortgage loan will be denied. You may end up paying a higher interest rate if you carry a lot of debt.

If your home is not worth as much as you owe, and you have tried to refinance to no avail, try again. The HARP has been rewritten to allow homeowners to refinance no matter what the situation. Discuss a HARP refinance with your lender. If your lender is still not willing to work with you, find another one who will.

Be sure and determine if your property has declined in value prior to applying for a new mortgage. The bank may hold a different view of what your home is worth than you do, and you need to know if that is the case.

Gather all your financial documents before seeing a mortgage lender. All banks and lenders will require that you show them some proof of income. They also need to see any of your financial assets and bank statements that show how much you are worth. Being prepared well in advance will speed up the application process.

Your mortgage application might get denied in the final stages due to sudden changes to your overall financial standing. Avoid applying for mortgages until you know that your job is secure. You ought not get a new job until you’re approved for your mortgage, since the lender will make a decision based to the information on your application.

As you can see, there are quite a few things that can help you with your home mortgage. You may have other questions still unanswered. Once you understand everything completely, you are now ready to make an informed decision on getting a mortgage that will help put you into your dream home.