16 Things NOT to do when Applying for a Mortgage Loan

NOT to do while applying for a mortgageYou can unknowingly sabotage your home financing goals by making some obvious and not-so-obvious moves with your finances.


Check out the list below to see if you know the top 16 things NOT to do when you are in the process of buying or refinancing.

 Do Not:

  1. Leave an existing job for any reason
  2. Open new bank accounts
  3. Close existing bank accounts
  4. Deposit funds over $300 into a bank account*
  5. Transfer money between accounts, unless receiving complete documetnation from your bank, itemizing all transfers
  6. Allow your bank statements to go into a negative balance, even if you have overdraft protection
  7. Buy new furniture, a car, or make any other major purchase*
  8. Shop for furniture, a new car, or any major items, which may result in your credit being run
  9. Apply for any new credit
  10. Inquire about new credit or better rates on existing credit
  11. Co-sign on any debt with a family member or anyone else
  12. Ask a tenant to move out, or give your landlord notice that you are moving out*
  13. Stop paying credit card debt
  14. Stop paying any bills
  15. Pay a bill in collections. If about to pay a bill in collections from a collection agency, try to pay it at closing**
  16. Have a friend or family member pay for anything rleated to the purchase of the home (appraisal, earnest money, down payment, etc), since gifts are only allowed under certain guidelines.

We hope you find this helpful! – 16 Things NOT to do, when applying for a Mortgage Loan:

Contact me before you start your home financing process. I can answer your questions and provide advice on how to prepare for a smooth and successful loan closing!

Guest Post courtesy of:

Jeff Kobold
Branch Manager, Prospect Mortgage
891 Main St. Unit B
Osterville, MA 02655
Cell: 508-221-6254
NMLS# 423207; Branch ID 603612
I Am licensed to originate mortgage loans in the following states: MA

*Check with me prior to making this change just to be sure it won’t affect your loan eligbilitiy.  **Paying a collection will greatly affect credit score and should be delayed (if at all possible) until the loan closes, then pay the collection at closing date. It will affect your score later, but won’t affect you getting the particular loan you are applying for.

Loan inquiries and applications in states where i am not licnsed will be referred to a Loan officer who is licensed in the property state. equal housing lender. Prospect mortgage is located at 15301 Ventura Blvd Suite D300, Sherman Oaks, CA 91403.  Prospect Mortgage, LLC (Unique Identifier #3295) is a Delaware limited liability company licensed by the department of Corpoations under the Carlifornia Residential Mortgage Lending Act and operataies with the following licenses; AK mortgage Lender/Broker License # AK3296; AZ Mortgage Banker License #BK0903027; to Check the license status of tyour CO mortgage broker, visit www.dora.state.co.us/real-estate/index.htm; GA residential Mortgage License License #16984; IL Residential Mortgage Licensee #6424; MA Mortgage Lender/Broker License #MC3296; MS Licensed Mortgage Co; MT Resdiential Moretgage Lender Licensee #120; NV division of Mortgage Banker #1173 and Mortgage Broker #3095; Licensed by the NH Banking Dept; Licensed Banker-NJ Dept of Banking and Insurance #9932414; Operates of Prospect Lending, LLC in Ny (Licnesed Mortgage Banker – New York States Department of Banking. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are sunbject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.



Bank of America Short Sales Relocation Assistance Program

Bank of America Short Sales – Relocation Assistance could be available from $5,000 to $30,000*

cash for keysBank of America has announced that their financially distressed clients wanting to avoid foreclosure and seeking a possible short sale alternative may be eligible for relocation assistance from $5,000 up to $30,000*

This is a limited-time offer. A Pre-approved Price short sale is needed and must be initiated.
(Contact an agent for full details)

A short sale must be initiated by the end of this year and close by September 26, 2013, to be eligible for the payment. Qualifying short sales that have already been started but have not closed may be eligible for the relocation assistance.


Eligibility Requirements

One of our agents will need to initiate a short sale with Bank of America to get the process started. BofA will quickly evaluate the homeowner to determine if they qualify for the enhanced relocation assistance.

Per Bank of America, the homeowner must participate in one of the Pre-approved Price Short Sale Programs*, such as:

  • HAFA (Home Affordable Foreclosure Alternatives)
  • Bank of America’s Cooperative Short Sale Program

The amount of assistance provided under the new program will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations. To help homeowners understand the short sale process and other foreclosure avoidance programs, Bank of America encourages them to visit the Home Transition Services website at www.bankofamerica.com/hometransition.

*Specific investor participation & eligibility criteria apply.

Homeowners not meeting eligibility requirements for the enhanced relocation, may still qualify to receive $2,500 to $3,000 in relocation assistance from government and bank sponsored programs.

Read Bank of America’s Press Release Here.



More Resources:

BofA Short Sale Programs

Latest News:

Bank of America Announces up to $30k for Short Sale!

* The relocation assistance payment is calculated based on the appraised value of the homeowner’s property.  The total amount will be no less than $5,000, but no more than $30,000.  The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which include but are not limited to the following: a full walk-through appraisal must be completed and the homeowner must satisfy all junior liens and provide clear title for the property (the relocation assistance payment can be used to clear those liens).  The short sale must close by Sept. 26, 2013.  If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, they will not receive the relocation assistance payment.  The amount of any deficiency and relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms.  We suggest that the homeowner contact the IRS or their tax preparer to determine if they have any tax liability.


Disclaimer: All information deemed reliable but not guaranteed. Information should be verified by visiting the Bank of America website directly.

What is REO? REO equals Bank Owned

bank owned foreclosure - reo

REO = Bank Owned Property

What is REO?

REO is simply a bank owned property. (why not call it a bop?)Wink

REO stands for “Real Estate Owned”. A property will go to auction when foreclosed, if it isn’t sold at the auction or goes back to the Mortgagee then it becomes what we call an “REO”.

Many investors wait until the property becomes an REO beacuse they feel they can get a better deal. When the auction occurs, the auction typically starts at the balance of the mortgage + any fees, liens, etc. Whereas, when it becomes REO an appraiser is brought in, a real estate agent will provide their opinion, and it is typically listed at market value!

We have MANY investors and Savvy Buyers who keep close tabs on our inventory to see what we have coming up…and keep in constant contact with us. Alot of times we don’t even get to advertise because once a property gets listed we may have offers within hours of it being listed if it’s priced right!!!

Want an REO? Sometimes it’s not that easy, if your too slow you’ve lost the opportunity for a chance at a great house!!

**NOTE: Don’t be fooled by my sarcastic photo used in this post. Not all REO’s are in this condition. In fact, there are alot of REO’s in GREAT Condition! Let us help you find one. There are many banks that are starting to make repairs and even rehab properties before putting them  on the market. Ask us for more info!

TIP: Visit our website often, I try to update it daily to reflect both NEW & Upcoming Listings.  If you happen to be extra eager to find something in particular, let me know! I will give you a heads up as soon as I get something that matches what your looking for. Often I can let you know ahead of time so that your ready to see it the day it’s listed & potentially offer in the very same day it’s listed.

Foreclosure Process

foreclosure process
The Foreclosure Process

 The Foreclosure Process

You’ve likely reached this page because you have questions or are curious about the Foreclosure Process. Below are some more articles I thought might be helpful.  There’s also a Video we took during the final part of a personal property eviction we had recently. Remember, Laws vary from State to State, so be sure to research the laws specific to your State.




Below is a short video documentary on the last part of the Foreclosure process we made. The Lockout.


Helpful Articles

Visit houselogic.com for more articles like this.








If you’d like to be contacted  by an agent or have further questions, please   “Contact Us” .


Clever Ways to Increase the Resale Value of Your House

Clever Ways to Increase the Resale Value of Your House

Increasing the resale value of your home does not have to be made of expensive and extensive remodeling and renovations. Sometimes, even the simplest things can already add up a significant amount of dollars on the value of the property that you are looking to sell. There are quite a number of strategies that you can do to achieve this. Of course, note that the specific cost and payback of these strategies can vary from one property to another. But overall, it should somehow boost their resale value.


The kitchen has long been considered the heart of the home so it is not such a wonder that interested buyers will check this part of the home first. Therefore, you should focus all your efforts in revamping this first. Spend a few dollars to change the faucet, replace the cabinet handles, or update old lighting.


A cohesive collection of kitchen appliances can make a very big difference in the way that a potential buyer will look at the property. Instead of replacing those off appliances with a new one, ordering new doors and face panels should be much cheaper.


Bathrooms are the most likely the second thing that buyers will watch out for. There are simple and cheap updates that you can give your bathroom. Consider buying a new toilet seat or a pedestal sink, or replacing your bathroom floor with vinyl tiles.


Old houses are known to have small closet spaces. Storage is another very important aspect in increasing the resale value of your home so would be a big boost to it if you add DIY wire and laminate closet systems. You can also contact firms to redesign your closets.


The only thing that will made a room a bedroom is when it has a closet. A den or any empty storage room in your house could potentially become an additional room when you get closets installed in it. A house that has more bedrooms adds a lot of value.


Aside from looking at the exteriors of the house, take a look at the mechanisms within it. Hire the services of an electrician or plumber to check on the wirings and plumbing to ensure that they are in good shape. Buyers would greatly appreciate this.


Good carpeting can quickly update any space and home. If the carpet in your home is not at all that rugged, you can just subject it to professional carpet cleaning. This is a very inexpensive treatment that can add some value to your home.


If boring and recessed lights have been providing your living space for so many years now, you might want to consider updating them to a fancy chandelier instead. There are so many of them on sale at reasonable prices. Also consider buying replacement blades for your ceiling fan.


If your main door has lost the luster that it once had years ago, consider painting or faux-finishing it to give it a good appeal for less. Also consider replacing its knob or handle and lock set. Note this is the first thing that buyers will see as they enter the house so it should be a sign of a solid home.

Resource Box:

Amy C. is a blogger who takes special interest in real estate. When she is not writing about selling and buying properties, she performs administrative work and blogging activities for Greyside Group, a maritime security and executive protection company. Watch out for more information and tips on real estate on her next post.

An overview of rehabilitation loans

An overview of rehabilitation loans

Rehabilitation loans or rehab loans are exclusively meant for the real estate investors so as to purchase homes which are in need
of repairs. These loans are specifically aimed at rebuilding, restoring or to improve the structure of the house. Rehab loans are also taken out
to repair the damages caused to the property due to any disaster or calamity. However, this type of loan is generally taken out to fund
home improvement plans. The investors then fix the property and resell the property for a profit. These loans are sometimes used to refinance a

The rate of interest associated with mortgage rehab loans is comparatively high in comparison to other property loans. Usually, the
term of a rehab loans ranges from 3 to 12 months. The loan proceeds have various usages such as for improving energy efficiency, for new
roofing, replacing electrical wiring, addressing lead paint hazards in a home, for plumbing and septic works.

To become eligible for such a loan, you, the applicant must be occupying the home currently. To obtain a rehab loan, you are required to submit an application with the
lender. However, you need to ensure that the terms and conditions of the loan are reasonable enough in order to satisfy your requirements.

The lenders who issue such loans not only check the financial position of the lender but they also check the repayment capacity of the lender.
Once you fulfill eligibility criteria rehab loans are approved by the Housing and Urban Development (HUD) officials. These type of loans
require a lot of paperwork and involves huge closing costs. Despite these odds, rehab loans are preferred by many of you. Moreover,
the rate of interest associated with rehab loans vary according to the structure of the house. The house under consideration may be a
single residence or two or more unit dwellings. These loans are offered to you as a means of encouraging you to keep the ownership of the
house. These loans are indeed very useful for the people with limited financial resources. Without this loan, many of you would not have
otherwise been able to afford a house of your own.

Usually, you can not obtain rehab loans from traditional banks or credit unions. In most of the cases, these loans are offered by the
hard money lenders or the private money lenders. These loans are not like the traditional mortgage loans or the FHA loans. These are special type of loans and these loans focus on different areas. These loans
may focus on the commercial properties, raw land or on development projects. The qualifying criteria for rehab loans depends on several
factors such as credit score, job history, monthly payments, down payments, W-2 statements, bank statements, etc.

Guest Post by: Alpena Liebe  10/21/11