2. Applying for a new credit : Focus on what you do! This means if you are going for planning to apply for a home loan it is better not to go for any auto loans, personal loans or new credit cards. . You are considered to have a greater credit risk when you apply for a new loan. Also there are higher chances of you loan application getting rejected due to your high interest rates. Thus better concentrate all your efforts on your home loan instead of going for other options.

3. Not getting the home loan pre-approved: Brace yourself before you apply for a home loan as good preparation is considered as the key to a good financing. Pre-approval by your bank is needed to qualify yourself for a home loan in any other banks. In a pre-approval the bank pulls out the information of your credit and they also look in to your income, employment and assets.  According to your debt-to-income ratio, the banks will ensure on how much you can afford.

Along with this pre-approval you get a written commitment from your lender which is enough to show how serious you are about the purchase. If you are in good terms with your bank then it will definitely benefit you in terms of loan processing time. Thus things become a lot easier.

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