The mortgage approval process is a complex task and may not always give you the results you want. For instance, you may get a higher interest rate or your monthly payment may be too much of a burden. The process is also time consuming and can be further delayed if you are the least bit careless. All this and other common mortgage issues can be prevented if you avoid making the following blunders.

• Knowing only the basics

A mortgage is one of those few things that can have a major impact on your life financially, and you will probably have to live with it for a couple of years. So before you begin applying, you must learn everything about the process. Just knowing the basics is not going to help you. You will need to get into it much deeper, even if it takes you some weeks to grasp the whole concept.

You must know terms such as amortization, closing costs, APR, HBP and CMHC insurance. You should also know the effects your down payment can have on the monthly payments and interest rate.

• Not going through the credit report thoroughly

You must know your credit score because it affects the mortgage rate, and can give you an idea of the least rate which you will get. You should also study your credit report and make sure it is error free.

Equifax and TransUnion are the two major credit agencies in Canada. Try to get reports from both of them and compare their reports to see if they are the same or not.

• Contacting just one lender for details

Quite a few of you will believe that your bank will give you the best possible rate, but this may not always be true. Mortgage loans vary significantly with each lender, and comprise of much more than just the rate.  There are many other aspects as well which are equally important.

You should at least compare the offers of four to five lenders and examine the differences. You can even ask smaller organizations for their details because they may agree on terms which the bigger companies won’t even listen to.

• Forgetting to read between the lines

The last phase of the mortgage process is to go through all the documents and then seal the deal. Do not make the mistake of signing the contract if you have not studied it. You should not only read the conditions mentioned, but should also understand the subtle meaning behind them.