Wouldn't it be great if everything in life came with a checklist? Unfortunately, for most of us we have to learn life's lessons the hard way - by experiencing them! Fortunately, for home buyers, there are some rules of the game that are well known and can help you avoid major pitfalls when buying a home or refinancing your mortgage. Let's take a look at nine mistakes that can have detrimental effect on your mortgage, so you can prepare yourself now to get the best terms possible.

Mistake #1 - Not shopping around. Too many people go to their local bank or other financial institution for their mortgage and never shop around. As a result, they end up paying more over the life of the loan because they don't realize what they could have had. Go to at least three mortgage providers when looking for a loan - make them compete and earn your business!

Mistake #2 - Buying too much house. How many square feet do you need and how much can you afford? Don't get yourself into a situation where you have too much house that you can't afford over your lifetime. Remember, it's not just the monthly payments you have to worry about. You also need to think about property taxes, insurance and heating and cooling costs.

Mistake #3 - Getting into the wrong mortgage. A quick scan of the newspapers will show you that a lot of people have gotten into the wrong mortgage. Make sure you know the differences between fixed and adjustable rate mortgages and seek the help of a trusted, third party to help you make the right decision. Be sure to review the prepayment penalties as well - why should you be penalized for paying off your loan ahead of time?

Mistake #4 - Credit. This one you probably already know about, but it is worth repeating again and again. Clean up your credit and don't make any big purchases right before you go to take out a mortgage. Save the new car purchase or flat-screen TV purchase until after you have signed the loan paperwork!

Mistake #5 - Borrowing too much. This goes hand in hand with #2. Don't anticipate future earnings and buy a house you simply cannot afford. Purchase a house you can afford now, even if it may not be your dream house. In a few years, if you are earning more, you can look into buying a bigger house. Start small and work your way up so that you know you can afford your mortgage and not get yourself into financial trouble down the road.