If you would like to save money on your mortgage you need to shop for the best deal. In order to avoid common mistakes homeowners make when shopping for a mortgage, you need to do your homework before you shop. Here are the basics you need to know before getting started.

Finding a new mortgage with a lower interest rate and better terms can save you a great deal of money. Most homeowners do know enough about the mortgage industry to recognize a good mortgage when the find one.

Before you do anything else you need to make sure your credit is in order. To get the best interest rate for your new mortgage you must not skip this step. Request a copy of your credit report from each of the three credit agencies. Once you have these reports go over each one with a fine tooth comb for errors. If you find problems you will need to dispute the error.

Once your credit reports are in order, focus on making all of your payments on time for at least six months. Mortgage lenders need to see you have a reliable payment history. By making these payments on time you will improve your credit score and qualify for a better interest rate.

If you have multiple credit cards the amount of outstanding credit you carry can also affect your credit score. Open accounts are potential debts; these accounts add additional risk for the lender. Close accounts you don