If you've finally located a property in Aurora that you'd like to buy, something that can finally top those Mississauga detached homes you drooled over for years, don't get too excited yet. There are still many home purchase steps ahead of you, including applying for the mortgage that will help you afford the property. If this is your first time submitting an application, or even if it isn't, you may find these dos and don't helpful.

DO shop around

Ask anyone you know who has purchased homes for sale in Lorne Park or elsewhere: not all mortgages are created equal. Some have higher interest rates than others. Some are long, some are short. Some allow you to make extra payments on the principal whenever you like, others force you to adhere to a strict payment schedule. Therefore it's best to visit several banks and brokers to see what you're able to get, then choose the one you like best from among the institutions that said yes.

DON'T over reach

It can be tempting, especially in a buyer's market like we have now, to want to buy a grander property to take advantage of the lowered prices. However, gold bullion prices rise and fall, and so do real estate prices. When your home value goes back up so will your taxes. Therefore you should make sure your mortgage payments aren't more than 30% of your income and that you have saved at least 20% of the purchase price as a down payment. This gives you the best chance of meeting your payments.

DO be honest

No matter how desperate you are for approval, you should never, ever lie to a financial institution when applying for commercial mortgage loans or residential property mortgages. This doesn't just mean lying about how much money you earn. It also means disclosing everything that might make you look bad, like credit card debts or student loans. They do their research on you, and if they catch you in a lie you could go to jail for fraud.

DON'T make big changes

Just before you submit your mortgage application and while the institutions are considering it, you shouldn't make any major changes to your finances. Of course you should go ahead and pay your bills, like the charge for having your property in the Toronto condo real estate listings, but don't close or open bank accounts or credit cards, or switch jobs.