First, my goal is not to scare you. Far from it. My goal is for your home buying experience to be as stress-free as possible. But I am also a believer in explaining why things are the way they are. And that is what I am attempting to do here.

Everyone has heard a horror story when it comes to getting a mortgage loan. What isn't being shared with the general public is the fact guidelines continue to get tougher and more detailed with every passing month. No one is unscathed: not the first time borrower or the veteran, move up buyer. If you received a mortgage loan in 2010, the differences will be evident in the required documentation. There's a threefold reason for the lending lock-down: investors (banks) don't want the home back in foreclosure, and insurers (PMI) don't want to pay claims, and the federal regulators are determined that certain procedures will be performed at certain times in the loan application's lifeline. Add to that, when lending is tight, instances of fraud are on the rise. Even though it feels like the planets are lining up against the applicant, never has it been a better time to invest in real estate. So, with hopes of minimizing your challenges, here are some tips.

Credit cards. While shopping for a home, it's very important to keep your credit cards paid on time and restrain from any large purchases. Please avoid letting anyone run your credit while you are shopping for a home and please do not close any revolving accounts. This can actually lower your score, even as much as a late payment could. About 72 to 48 hours prior to closing, a soft-pull (meaning it won't show or hurt your credit score) report is done. This will tell us if there have been any new accounts opened, any inquiries for new credit, and any increased balances. Substantial increases mean another trip back into underwriting.

Non payroll deposits. If your bank statements have "counter deposits" listed, we will be required to show the source of those funds. In many cases, it could be a payroll check that doesn't have automatic deposit. Or, it could be an insurance reimbursement check, bonus check or the sale of an item. We go back 2 months on the statements, in some cases further (we really try to avoid this), but every file is different. The best way to handle deposits that are not already identified as payroll is to make sure you deposit the full check (so the check stub matches the deposit). If there is no check stub or tear off description, please make a copy of the deposit before making the deposit. Please do not deposit any gift funds without specific documentation instructions from your loan officer and call your loan officer if someone should give you cash. Why all this bother? All loan types require we verify the funds as rightfully belonging to you.

Unreimbursed employment expenses. If you claim unreimbursed employment expenses on your tax returns (Schedule A, line 21 or Form 2106), it is imperative you share this information with me. Most loan programs require us to pull IRS transcripts to check for these expenses, which lower your qualifying income. (We have portfolio programs, as well as, USDA which do not require tax returns unless someone is self-employed or receives commission income).

Your prequalification numbers. Several factors go into play when you are prequalified for a mortgage. Chances are you were given a maximum loan amount or maximum payment. Those numbers are only good if nothing else changes. So what can change, you ask? Well, besides the ever-so-sensitive interest rate, real estate taxes vary, as do Homeowner Association dues. The best way to do this is to know your maximum payment. This way, if you call your loan officer 3 months down the road to see if you can buy THE house and they aren't at their computer......if you know your max mortgage payment, they can answer that question without your file.

Forewarned.....it can make all the difference in the world.