Taking a mortgage is an extremely important financial transaction. One topic that needs more information out there is the topic of mortgage mistakes. A mortgage mistake can cost you a lot in the long run, including your dream home.

Here are some common mistakes made when getting a mortgage . Steer clear of these and you will be on your way to a financial decision well made.

Forgetting to check in with local companies
This is a surprisingly common mistake made by many applicants. Experts recommend always checking the deals and rates available with a local mortgage company as these are usually the best for you. For instance, if you are searching for a home in San Diego, you should preferably not contact a mortgage company in Rochester.

Mixing up pre-qualification and pre-approval
These are two terms that mortgage applicants always mix up. Most buyers mistakenly take a mortgage pre-qualification and go about searching for the house of their dreams only to be met with a mortgage rejection or a lower amount approved.

A mortgage pre-qualification is simply based on the information that a buyer fills up and gives a lender. This information may not always be accurate. On the other hand, a pre-approval sees the lender check your financial records and credit reports and give a clear go-ahead. So, always make sure to get a pre-approval and not a pre-qualification.

Taking on more debt
Many mortgage applicants make the mistake of opening up new lines of credit while taking out a mortgage. These lines of credit may be used for other expenses such as furnishing the house. However, do remember that taking on more debt sees that a hard inquiry is made on your credit score, and this is not something you want happening just when you are making a mortgage application.

Forgetting to opt for a locked-in rate
A locked-in rate on your mortgage means that you can benefit from an assured rate for a period of anywhere between seven to as much as 90 days. Sometimes the lock can even extend beyond this. If you forget to opt for a rate lock-in and your current mortgage rate is 4% and a few days later the rate rises suddenly to 4.6%, you will have to pay the higher rate. So, make a wise decision and opt for a rate lock.

Not counting mortgage fees
Mortgages come along with fees. This is an extremely important point to consider when calculating your home-owning finances. The main fees to keep in mind are the origination fee, broker fee, underwriting fee, and application fee. While some fees are absolutely fixed, the others can be negotiated. So, do not hesitate to ask if an adjustment can be made. Forgetting this step is one of the common mistakes made when getting a mortgage.