Here are the top 10 do's and don'ts when looking to secure a mortgage.

Here are the top 10 do's and don'ts when looking to secure a mortgage.

Keep in mind the actual lender will pull their own credit report at closing, and if your credit scores have dropped, you may no longer qualify for the rate that was underwritten and the final approval may come back with a higher rate. Unfortunately, all lenders qualify you by your credit score as to which criteria you fit and every loan has different criteria attached. The loan to value, the debt to ratio and so on etc. This is what borrowers do not understand, and they think the loan officer is baiting and switching. They are not. If an issue comes up that the lender decides you do not qualify for a certain loan, the only thing a loan officer can do is shop for lenders and see if any are willing to give the rate and program they thought you qualified for. If you have good credit and know your score, the loan officer can give you an idea what he or she can offer based on what you say. But do not expect them to stand by their quote if and when they pull your credit your scores have dropped.

Whether you are thinking of refinancing, buying a home or investing in real estate, today's guidelines are more strict than they have even been. The process of applying for a home loan is more documented than ever before no matter if you think you never had a problem before. Good credit is critical when it comes to obtaining the best interest rates and terms on a mortgage.

Methods to Improve Your Credit

1. Don't Apply For New Credit. Every time that you have your credit pulled by a potential creditor or lender, you can lose

points from your credit score immediately.

2. Don't Pay Off Collections or "Charge Offs." If you want to pay off old accounts, do it through escrow, making sure that

the debt is yours. Request a "letter of deletion" from the creditor.

3. Don't Close Credit Card Accounts. If you close a credit card account, it may appear that your debt ratio has gone up.

Closing a card will affect other factors in the score, including credit history.

4. Don't Max Out or Over Charge Credit Card Accounts. Try to keep your credit card balances below 30 percent of their

limit during the loan process. If you pay down balances, do it across the board.

5. Don't Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that

you are "maxed out" on that card and you will be penalized.

6. Don't Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts,

co-signing on a loan or changing your name or address with the bureaus.

7. Do Join a Credit Watch Program. Then, you may check your own credit reports regularly (you won't get dinged for a

"hard" inquiry). Plus, if something unexpected does show up, you can address it promptly.

8. Do Stay Current On Existing Accounts. Like your mortgage and car payments, one 30-day late notice can cost you.

9. Do Continue To Use Your Credit As Normal. Red Flags are raised easily with the scoring system. If it appears that you

are changing your pattern, it will raise a red flag and your score could go down.

10. Do Call Your Loan Officer. Your Loan Officer may be able to supply you with the resources you need to stop any

derogatory reporting to the bureaus. Ask for details.

If you or anyone you know has any questions about this or any financial questions, please don't hesitate to give me a call.

Sincerely,

Dana K. Bain

President

MLO 18693

www.PremiereMortgageServicesInc.com

www.BainMortgage.com

11 Malvern Hill Road

Sterling, MA 01564

Phone: (978) 422-2311

Toll Free: (800) 480-0545

Fax: (978) 422-2313

MA Lic. No. MB1205

Licensed by the State of NH
Banking Dept. Lic. No. 5430-MBR