I found these tips from the California Association of Realtors newletter:

Talking Points … 

  • Getting a mortgage is a complex, time-consuming process that is generally one of the most significant events in one’s life.  Because of this, there are several potential pitfalls borrowers should avoid.

  • Applying for new credit and a mortgage simultaneously is never recommended.  Anytime a borrower applies for new credit, the borrower is seen as a greater credit risk, at least initially.  If the borrower also applies for a credit card or auto loan around the same time as applying for a mortgage, the borrower’s credit score might get dinged enough to increase the interest rate applied to the loan, or disqualify the borrower altogether.  Borrowers should first apply for a mortgage, then apply for other consumers loans after the mortgage has been funded.

  • Another mistake some borrowers make is failing to look at the total housing payment.  A mortgage payment consists of principal, interest, taxes, and insurance (PITI).  Commonly, some prospective home buyers forget to factor in the property taxes and insurance premium into the overall mortgage budget.