Dear Reader,

Today I want to take time to educate the borrower (applicant) on things not to do when getting ready to apply for a home loan.  With recent sub-prime mortgage meltdown, mortgage guidelines tightening and interest rates on the rise in the past 3 weeks in a row, I believe all consumers should be more cautious before applying for a purchase loan or a refinance loan with a lender of your choice.  An educated applicant is essential in this market and it is my duty to try to educate you so that you get approved for a mortgage product of your choice with a great interest rate.

*Note: Real Estate Professionals, feel free to add this to your own blogs and even in your email blasts to your current clients.  You have my permission to use this blog to share with your family, friends and colleagues.

10 Things Borrowers Should Avoid When Applying For A Mortgage:

 1.) Avoid being late on your bill payments!  Lenders look carefully at your recent credit history as it is a major variable when it comes down to approving you for a mortgage and determining an approval with a great interest rate.  I tell all of my family, friends and clients to just make the minimum payments even if you can't afford to pay the whole debt off when you receive the bill.  The three major credit bureaus look for a solid payment history in order to rate you and give you a high Fico score which is one of the major variables when applying for a home loan, a car or any big purchase.

 2.) Avoid purchase or lease of a new car!  Lenders look at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a mortgage.  Ask yourself, which is more important to you, a car or a home?  One of the biggest purchases and investments of your lifetime is more important than a car so don't chance this by adding more debt to your current debt/liabilities.  Wait until you close on your transaction/mortgage and then go ahead and purchase a new automobile or lease a new car. 

 3.) Avoid changing jobs!  A new job may include bonuses which you can't count towards your new income because in your previous job you did not have bonuses.  A new job in a different field might cause problem when applying for a loan.  Remember that lenders look for 2 years of employment history which should usually be in the same line of work.  If you are fresh out of college then you do have a college/university excuse and it is okay if you have not worked yet for 2 straight years after college.

 4.) Avoid buying new furniture or major appliances for your new home!  If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs.

 5.) Avoid moving assets from one bank account to another!  These transfers show up as new deposits and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to.

 6.) Avoid searching for a lender on-line!  Not many have heard positive stories about people using on-line companies for their home financing needs.  I am implying about companies like Ameriquest, DiTech and xyz mortgage companies.  I highly recommend speaking with someone that you know and trust.  If you do not know anyone in the business then ask a family member or a close friend to refer you to someone.  I am looking for your best interest, your family and friends are as well.  Always going with the top lender in the country like the #1 home loan lender that I currently work for Countrywide Home Loans is your best bet.  Would you rather do business with someone who you can see face to face or someone that is hundreds or thousands of miles away from you in another state who you know nothing about?

 7.) Avoid requesting your credit report by yourself!   When you request your own credit report this will show as an inquiry on your lenders credit report.  Credit inquiries must be explained to the lender by you writing an explanation letter.  In your explanation letter you should also include that you have not recently applied for new credit cards or any other debt that the lender can't see.  Lenders and I are looking for your best interest so don't apply for new credit cards and increase your debt because it could be detrimental to you getting approved for your mortgage product of interest.

 8.) Avoid losing needed documents for the loan application!  Important paperwork such as W-2 forms, divorce decrees, tax returns, pay-stub and asset statements should always be filed away in a safe place where you can access them when needed.  Requesting new copies of these items could take a long time and could effect the closing of your mortgage.

 9.) Avoid seeking advice from persons who are not certified professionals in the mortgage business!  There have been a number of times where I've had clients tell me that their colleague or friend told them differently regarding something during the loan process.  I want the best for you and I would not dare say anything which is not true or anything that will keep you away from getting approved for a mortgage.  Speak with a mortgage professional about anything that has to do with your home loan and don't ask anyone else.  Do you ask your landscaper about investment decisions?  Do you ask your dentist about your cholesterol levels?  The point here is to always seek advice about mortgage from a mortgage professional.

 10.) Avoid consolidating your bills before speaking with your mortgage professional!  Speak with your lender first and then they can guide you on if it is needed to be done or not.  Sometimes the liquid assets that you have in your checking/savings/asset accounts could be needed in order to get approved for the home loan.  It is great to have less debt/liabilities but it is also important to have money saved/stored away in the bank because lenders like to see reserves.  They want to see that you have assets in emergency cases like if you lost your job that you can still make your monthly mortgage payments while you search for a new job.  Again, the lender or your mortgage professional is looking for your best interest.  They are not going to lend you hundreds and thousands of dollars if you have no money in the bank because you never know when any emergency can arise.

Thanks for reading my top 10 things to avoid when close to applying for a mortgage.  If you have any further questions or need any mortgage advice, then please feel free to contact me by visiting my website: http://www.mynima.com/

Want to set up a FREE NO-OBLIGATION MORTGAGE CONSULTATION for a refinance or a purchase of a home then click here to get started: https://countrywide.dorado.com/nimarezvan/GetStarted

or you may contact me on my mobile at 203.913.6016 or email me at: Nima_Rezvan@countrywide.com

Your Nationwide Mortgage Professional,

Nima Rezvan

Home Loan Consultant

Countrywide Home Loans

48 Westport Avenue

Norwalk, Connecticut 06851

I work nights & weekends for your convenience!  I can do loans in all 50 states.