Before you start writing offers for a dream house, be aware of some common mortgage mistakes:

• Don't exceed your budget: Get prequalified for a loan before you start house shopping.

•  Don't dig that hole deeper: Avoid taking on new debt while applying for the mortgage. Most lenders will get two credit reports, one at the onset of your mortgage application and another to double-check your status just before closing. New debt, such as a car loan or a new credit card, could hurt your debt-to-income ratio or credit score.

•  Don't lose that job: Most loan programs require a two-year employment history in the same line of work. If you recently changed careers or decided to quit your secure gig to start a business, the income from those jobs may not count. Remember, too, that a lender will verify your employment status, so don't try to hide a pending layoff.

•  Don't run out of cash: Most lenders require you to have at least two months of mortgage payments in addition to the down payment and closing costs.

• Don't rely on "hidden" money: Many people rely on "mattress money" -- or cash tucked away in their homes -- for major purchases. But lenders often require that the source of money for a down payment, closing costs and cash reserves be easily identified and in your bank account for at least the past two months.

•  Don't time it too closely: Don't count on selling one property in time to buy another. The timing for such "contingent financing" is unpredictable. If your home purchase is contingent on the sale of an existing property or on the closing of a refinance, discuss the timing with your lender.

•  Don't throw away your pay stubs: Pay stubs, bank statements, tax returns and the like are critical documents in applying for a mortgage.

•  Don't be afraid to ask: Be sure everything is happening on schedule. If your loan officer calls and wants to know what that $1,500 deposit in April's bank statement was, you need to answer. The mortgage business is like an assembly line. There are generally five groups of people involved: real estate agent, loan officer, appraiser, underwriter and closing attorney. If one person isn't doing his or her job, everything can come to a halt.