If you are shopping for a mortgage loan, take head and not make these mistakes that could halt approval from a lender.

1.  Disregarding Your Credit Reports.  This is critical.  Find out your FICO score and make any and all necessary repairs to improve it.  You will pay dearly if you overlook this component.

2.  Overborrowing.  Just because a creditor will give you a limit of $25,000 doesn't mean you should take it.  This is a credit card example, but frankly, applies to your home loan as well.  Don't take buying a new home as an opportunity to furniture shop as well, namely if you are doing it on credit.

3.  Changing Your Job.  This is not the time to find your passion in life.

4.  Cutting Down on Credit Cards.  Paying down your credit card debt is important, but closing accounts when you are establishing mortgage worthiness is a no-no, especially if it is cards that have a long history with you.

5.  Moving Your Money.  While you are shopping for a loan, don't decide you are unhappy with your current bank.  Keep your money seasoned and in place until after you have closed on your new home.

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.