-> It is important to get pre-approved for a mortgage loan because most real estate agents will not show you any properties unless you have that letter. Getting a pre-approved letter will avoid all the hassle, lessen your closing costs and what's best, the process is free!
Note: Do not settle for a "Pre-Qualified" mortgage because that means nothing. You have to be pre-approved, not pre-qualified!an

-> If you have a down payment of less than 20% on your home, you have to get Private Mortgage Insurance (PMI) that protects your lender from your defaults. This PMI could potentially add several hundred dollars to your monthly mortgage bill. To get your way around that, mortgage brokers often recommend two loans; a primary mortgage for 80% and a home equity loan for the remaining 20%. The home equity loan will serve as the 20% down payment clause and avoid you having to purchase PMI. This idea was sound when interest rates for home equity loans were like 5%, which matches to that of mortgage loans. However, interest rates on home equity loans now hover between 7% - 9%, which makes them a less popular deal. You would actually be better off buying PMI than taking out a home equity loan.

-> The credit bureaus literally receive millions of pieces of information every day about consumer's buying habits, defaults and late payments. This makes them very prone to errors. Infact, 75% of all credit reports contain atleast 1 error. Therefore, it is advised to check every entry that appears on your credit report.

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