Today, more than ever, getting approved for a mortgage is tricky.  Banks have tightened their standards due to the unfortunate economic situation at hand and the housing crisis.  One reason people often do not get approved for a mortgage is because they are not educated on the mortgage market.  The first step to finding a mortgage should be researching the industry.  You need to understand it so that you do not look naïve when you are talking with prospective lenders.

Shop Around

Once you understand and are confident in your abilities, make sure that you shop around.  When the economy is good, usually one loan is as good as the next.  However, that philosophy is not necessarily true during a tough economic time period.  Do your research.

Get A Fixed Rate

After you begin working with a lender, get a fixed rate.  If you currently have an ARM keep it for now.  The interest rates are low right now, so the ARM will not affect you in the short term.

Are You Pre-Approved?

Lastly, it is a lot easier to get approved for a mortgage if you are pre-qualified.  You might need to work out your finances and even improve your credit score to get pre-qualified.  And, for those who are first time borrowers, consider seeing a credit counselor.