Buying a home, of course, is a major investment. In fact, buying a home may end up being the largest investment you will ever make. Saving money on a home loan is highly advisable and is easier than you may think.

When you apply for a home loan, make sure you have a high credit score. This is common sense in the world of home loans. Poor credit equals either a rejection of the loan or a very high interest rate.

Check your credit report before you apply. This is also common sense. The credit report will inform you on how good your credit score is and if there are any mistakes in the report. Remember, credit reports are the primary way banks can decide if you are responsible and trustworthy or not.

The two most important factors that calculate your credit score is your current credit card balance and if the payments are made on time.

Shop around and get more than one home loan quote. Lending is a competitive business. Let home loan providers know you are talking to the competition. Ask them what they can do to help you. See if they are advertising any home loan rate specials. If they aren’t and a competitor is, see if they will match the competitor’s offer. It never hurts to ask. The internet makes doing research and comparison shopping for the best home loan rates easy. Just a few clicks and you have the information you need right in front of you.

It’s always advisable to ask the seller to pay your closing costs. Selling costs are expenses paid when you obtain the home loan. The selling costs can range between 3-7% of the total home’s value, including points, taxes, title insurance, financing, and other settlement costs.

If the seller refuses to cover the closing costs, consult the lender and request a negotiation of a lower rate on the closing costs.

Purchasing a new home is an overwhelming experience, and unless you have millions of dollars to spend, you are going to need a home loan. Trust the lender as a friend and allow them to work with you. But always do your homework and make sure you are getting the best deal possible.

Tom Martens is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.