NEW YORK (CNN/Money) - So, you think rocket science is difficult? Try understanding the mortgage settlement process.

No matter who you are or how much money you make, most future homeowners end up at the closing table about 60 days after you apply for a home loan. Every year, Americans spend approximately $50 billion on closing costs. The U.S. Department of Housing and Urban Development is nearing the finishing line in developing new regulations to make the process simpler and more affordable.

But until then, here are today's five tips to help you on the road to home ownership...

Brian Sullivan of HUD says before you even go to a bank or mortgage broker, you'll want to track down your credit report. This way, you'll have the knowledge and the confidence to apply for a loan without being in the dark.

If you are an A+ borrower with pristine credit, you know you deserve the very best rate the bank has to offer and won't be taken advantage of. A low score could get you a higher rate or your application could be flat out rejected.

If you have bad credit, you can work on fixing the problem before your potential lender finds out.

Credit scores in the range of 620-650 indicate basically good credit. And, if you have a credit score of 680 or higher you could most likely qualify for the lender's best rate.

Check out your credit history at the three major credit bureaus, Experian, Equifax and TransUnion. You can find them all on the web. We found the cost to get your report can range from $9.00 to nearly $30.

One reason why EVERYBODY should do a preemptive credit check on themselves? Sometimes, these credit bureaus will have a mistake indicating you have a blemish on your record. Checking beforehand will prevent the bank from discovering it when they check your credit.

Once you know how credit-worthy you are, you're ready to shop around among the many banks and mortgage brokers out there. The Internet is always a good resource. Check out www.hsh.com and www.bankrate.com. Also, check out the local real estate section in the newspaper. And start collecting your W2, paystubs, and debt history, because you will need them.

Shortly after a person applies for a home loan they will receive a document called a Good Faith Estimate. This details their total estimated costs they are likely to see at the closing.

Gerri Willis on five things you need to understand about the mortgage process. Play video (Real or Windows Media)

These include title insurance, appraisals, credit checks, even pest inspections. Make sure to ask your lender to explain every single item, to your satisfaction, on the Good Faith Estimate. You want to make sure you are dealing with someone who is reputable and won't tack on additional charges and fees at the closing.

Shop around early on for as many Good Faith Estimates as you can with similar loan packages. This will give you ideas of what your bottom line will be.

The Real Estate Settlement Procedures Act (RESPA) was enacted nearly 30 years ago to provide consumers with a clear understanding of settlement charges and to prevent excessive fees. Nevertheless, consumers still often do not understand the charges and experience sticker shock at the closing table.

They will sometimes be expected to pay hundreds and even thousands of dollars more than their estimated settlement costs. Log onto www.hud.gov for more information on Good Faith Estimates.

Later in the process, you should check out the HUD-1 settlement statement. The HUD-1 is the final statement that outlines the ACTUAL costs you owe.

This usually isn't prepared until shortly before closing. 24 hours before closing, demand to see your HUD-1 and compare it to the original Good Faith Estimate. You have a right to see it, according to RESPA rules.

If you see a big difference between the estimated and actual costs, this gives you time to protest the fees. Most people wait and see the HUD-1 for the very first time at the settlement table. You're better off digesting the statement before hand.

Keep in mind, you may see a few differences between the Good Faith Estimate and the HUD-1, and these may very well be legitimate. For example, courier fees are often later included.

At the closing, you can have your attorney present, but this is an additional out of pocket cost. Nonetheless, it could be money worth spending to make sure someone is present with your interests in mind.

If you're a homebuyer who prefers simplicity, guaranteed mortgage packages might be the way to go. These provide a single price upfront that will include the mortgage interest rate and the total settlement charges.

By guaranteeing the costs at the front end of the process, and not at the closing table, consumers have the chance to shop around for the best price.

Now, if you are a stickler for details, this might not be the best option for you. These guaranteed packages will not give you a cost breakdown. You'll probably want to stick with the Good Faith Estimate.

Several of the big players that offer the packages include Ditech.com and Mortgage.com. We went to Mortgage.com and found that among the fees its guaranteed one-fee mortgage includes are appraisal fees, credit reports, underwriting and processing fees.

Keep in mind, current rules limit the number of companies able to offer these packages. HUD wants to reform the rules in order to allow more players into the guaranteed mortgage game.

Lots of borrowers use mortgage brokers these days -- they are the people who can grease the wheels of a mortgage loan by helping customers complete loan forms or lining up other services like property appraisals or credit reports.

Typically, a broker has relationships with a number of lenders whom they ultimately match with borrowers. However, understanding broker fees can be tough. Some are direct fees figured as a percentage of the total mortgage amount. That's clear enough. But sometimes on the good faith estimate, you'll see a cryptic message which reads YSP (POC).

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This stands for yield spread premium paid outside of closing. It is most often used when a buyer doesn't have enough money to pay closing costs and elects to finance it as part of their mortgage debt. (If that's the case, you'll want to make sure that you get the break on closing costs you expected.)

But YSP can also represent a fee to the broker for their services that is paid in a lump sum by the bank, but, again, is financed as part of the loan. That means an additional fee footed by the borrower. Critics argue that the YSP is often not clearly enough explained to borrowers.

The best way to make sure you're getting the best deal is to get competing good faith estimates.

Gerri Willis is the personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.