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For many families, buying that first home or a bigger home is still the American idealistic path even in this financially strapped economy.

It is important for consumers to avoid at all costs financial mistakes when applying for a home loan so as to not waste time or money. Although the Fed has often listed these potential pitfalls, we should discuss how these 3 ideas can be used when applying for a purchase or mortgage refinancing.

1. What Can You Comfortably Afford

Maybe it’s not so much a clause but rest assured a vital point for you and your family to discuss… how much can you afford. You must have a clear idea of this before you ever go out shopping for a home or starting the mortgage process.

You should sit down and “crunch” all the numbers involved beginning with all your expenses and total income for the month. Don’t forget to include home insurance, property taxes, etc. This will be necessary as the lender will want the exact same details when applying.

Make sure not to cut yourself short at the end of the month by forgetting to include those unexpected emergencies such as a leaking roof, busted plumbing or that water heater that you forgot could go out at any time.

Of course you cannot plan for every possible situation that may or may not occur. But don’t make the mistake of failing to plan for such events that could quickly put you in the poor house.

2. Understanding the Different Types of St. Louis Home Mortgages

Due to the fact that there are so many different types of mortgages justifiably demands that you take the time and discuss the pros and cons with a mortgage professional. When it comes to a fixed-rate mortgage, would a new 30-year mortgage be the best for you and your family or perhaps a 15-year home loan put you in a better financial condition?

For example, an adjustable rate mortgage may help you get into your home a bit easier compared to a fixed rate loan. Just keep in mind that each type of loan has their advantages and disadvantages depending on your goals.

The worst thing you can do is not take the needed time on the phone or in person with your mortgage professional.

If you want a smooth financial transaction that will truly benefit you and your family, the last thing someone wants to do is show their ignorance by thinking they can “run the show.” Loan officers know more than you. This is their specialty. Let them do their job by you being courteous and involved through the entire process.

3. My Momma Told Me… You Better Shop Around

Shopping around for a loan is not the same when shopping for toilet paper or groceries. It is encouraged to do some initial research on the Internet or at the library. But never, ever waste anyone’s time. You would not tolerate this type of disrespect and neither should you think you have the right to do so.

Since this is probably the largest purchase you will make in your lifetime, go online and educate yourself about different types of loans and current rates. Asking well thought out questions and taking your household budget with you will help the lender to help you in reaching your financial goals.

Now would be the time to visit with your lender or mortgage broker. In fact, a mortgage broker can actually do all the shopping for you by obtaining various loan quotes from lenders thus saving you valuable time and money. With that being said, following these 3 simple rules when shopping for a St. Louis home mortgage loan will inevitably make your loan process easier and much more pleasant.

Learn more about getting a St. Louis home mortgage. Stop by Floyd J. Tapia’s site where you can find out all about the St. Louis Refinancing and Mortgage industry and what it can do for you and your family.