Applying for a mortgage for your real estate investment plans is really a daunting and complicated process. It involves too much paper works and too much technical concepts to learn. However, no matter how complex this process can be, you do not have a choice but to learn this process because this is a crucial part of the home investing process, more particularly if you do not own enough cash to pay for the property, let us suppose a Destin real estate. Before you experience the most interesting stage of the entire investing process, which is visiting and viewing Destin homes for sale, learning the proper procedures of the home loan application is a must. This is to separate you from other homebuyers who go into this crucial financial process without having the full grasp of the process first. The mortgage application can be tiresome and it can give you a lot of confusion. There are possibilities that you make some errors during the process but it is best that you know the common mistakes home buyers do so you can avoid them, yourself. Error # 1: Not fixing your credit report before applying for a loan Most homebuyers, especially the inexperienced ones, tend to go into the application process for the mortgage while not going through and checking their credits and other financial deficiencies first. Because of this mistake, many homebuyers receive got rejected with their mortgage application. If you have a low FICO credit score, expect that there are high chances for your application not to be approved. The FICO score is represented by three digit number and it shows how credible you are to have a credit. Seventy five percent of the decisions in mortgage application use FICO score for basis. Try to check your credit score six months before you apply for a loan so you will have ample time to fix whatever wrong information stated in your credit report and improve your score if you get a bad one. Error # 2: Not researching about mortgage programs available for first time buyers National and local government are sponsoring various mortgage programs for first time home buyers or people who do not own a main residence for the last two years. Most of the loan programs of the government and non-profit agencies give better interest rates. Try calling local housing agencies and ask about the available home loan programs. Error # 3: Applying for too much loan Many of the homebuyers tend to miscalculate the amount of money they borrow, most of the time, overestimating them, because they think that their income will increase after several years and that will make the mortgage payment be more comfortable for them as the time goes by. They will try to apply for the largest amount possible, but actually, this kind of decision can only result to headaches, more expenses and possible foreclosure. Aside from the monthly payment for your home loan, you also need to consider allocating portions of your income for household expenses such as bills, maintenance and repair fees, among others. You have to make a long-term financing plan first before you set the amount you will borrow so it would be easier for you to keep up with the monthly payments.