Are you curious about what a mortgage is? A mortgage is a loan that you use to pay for your home. If you take out a home mortgage and don’t pay, you will lose your house. Getting your mortgage is a major step so you need to do it right.

Pay off current debt, then avoid getting new debt while you go through the mortgage process. If you have low consumer debt, your mortgage loan will be much better. When you have a lot of debt, your loan application may not be approved. Large debt loads are expensive as well, in terms of the higher interest rates it can bring.

Always review your credit report prior to applying for the mortgage. The new year brought tighter credit standards, so improve your credit rating so that you have the best chance to get qualified for the best loan products.

If you haven’t been able to refinance your house because you owe more on it than what it is really worth, consider giving it another try. There is a program out there called HARP that helps homeowners renegotiate their mortgage despite how much they owe on the property. Speak to your home loan provider about the new possibilities under HARP. If the lender is making things hard, look for another one.

You will mostly likely need a down payment for a mortgage. In today’s world almost all mortgage providers will require down payments. Consider your finances carefully and find out what kind of down payment you will need to provide.

Before starting the loan process, get all your documents together. These are all documents commonly required. This includes your statements, the W2s, latest paycheck stubs and your income tax returns. A fast, smooth process is in your future when you do this.

If your mortgage application is initially denied, keep up your spirits. Try visiting another lender and applying for a mortgage. Every lender has their own criteria you need to meet to qualify for their loan. So, when you are denied by one, you may still be approved by many others.

Before you even talk to a lender, look at your budget and decide what the maximum price is you are willing to spend for a home. This means setting a limit for monthly payments, based on what you can afford and not just what type of house you want. Even if your new home blows people away, if you are strapped, troubles are likely.

While there are lenders who lack scruples out there, you can use the information you got here to seek the lenders who are in it to assist you. Use the tips shared here and your loan process can be a lot more successful. Print out this article and refer back to it when needed, as you apply for a home loan.