We know that you are excited about home ownership and your first mortgage. However, when choosing your mortgage, there are three major mistakes to avoid that can improve your mortgage experience, and possibly even save you from financial ruin.

The first mistake you should avoid is choosing the wrong mortgage. This may seem like common sense, but there are so many options out there sometimes it may be tempting to choose one that is not right for your situation. Some examples of what not to do are taking on a 30 year mortgage when you plan to retire and move away in ten years, or taking on a fixed rate mortgage with high closing costs when there is a good chance you will be transferred in a couple of years.

The biggest mistakes, though, in this area, involve taking risks like getting an adjustable rate when you aren't sure your income will increase when the mortgage does. Make sure to get a mortgage that conforms to your budget rather than hoping your budget will somehow magically conform to your mortgage.

The second mistake is letting your ratios get out of hand. Your mortgage payment should not be more than approximately 28 percent of your income, and your total debt should not be more than 36 percent of your income. While these are only rules of thumb, you should be very careful about straying too far above them. Just because a lender is willing to give you a loan at a 50 percent ratio doesn't mean it is a good idea. You may find yourself very uncomfortable financially, having to give up using your money for enjoyment, savings, or investment, or even worse, finding yourself in default on your mortgage.

The third potential mistake is paying too low a down payment. Low down payments are tempting, especially if you have to wait to save the money. However, you could find yourself in trouble if housing values stagnate and you need to sell your house. In such a case, you might wind up with high out-of-pocket expenses for commissions and other selling expenses.

These are just some simple precautions to make sure you don't get in over your head when you are getting a mortgage. Of course everyone's situation is different, but most people would rather play it safe than risk serious future problems in exchange for perceived short-term benefits.