Buying a home is serious business. And since you will most likely seek a mortgage to make such a big purchase, it’s important to learn from former buyers and not commit their top home mortgage mistakes.

3 Top Home Mortgage Mistakes to Avoid

Getting the WRONG mortgage. Due to the fact that home buyers have unique personal situations, the mortgage industry has developed many different types of mortgages to address these differing needs. Although this is a good thing, it becomes a problem if you choose the wrong mortgage type.

For instance, do you know the difference between fixed-rate mortgages, interest-only mortgages, or balloon mortgages? (And these are just a few from many different types!) If not, then you run the risk of choosing the wrong mortgage type and then seeing yourself ‘burdened’ with the fact that you owe the full balance of your home after just a few years! For many, this can be a fatal financial blow.

So the first step is really to make a list of your personal situation (e.g., can you afford a down payment? what’s the potential for higher income in the next years? etc.) and to study or be knowledgeable about the different types of mortgages and find out which one best suits your needs.

Getting TOO Deep in Debt. You’ve fallen in love with a great-looking and costly house but you’re already in debt. Luckily, a mortgage lender has approved your mortgage anyway. Should you go for it?

The short answer is no. Mortgage lenders study your debt in various ways to find out if they should grant you a loan or not. And although they have agreed to grant you a loan, it’s still all up to you how to pay all your debts. So, can you really shoulder all these financial burdens? Don’t forget that if you don’t pay up, you risk losing that beautiful home to the lender in the end so it’s important that you don’t get carried away.

So what do you do? Study your financial situation. Write down how much debt you already have and how bigger that number will become if you add mortgage payments on top of it. Consider your job and if it’s ‘solid’ in such a way that you’re sure it’s at least guaranteed for the coming years. How about the potential of getting a higher salary down the road? In the end, experts say that if you owe more than 40% of your gross income, you should delay buying a home until your finances are more stable.

Putting Up an Extremely Small Down Payment. You should give as much down payment on a house as you can. Remember that what you don’t put out, you borrow. And this leads to bigger monthly mortgage payments; money that’s eating up your salary monthly!

Buying a house is a big decision so keep these top home mortgage mistakes in mind so you don’t regret it.