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Applying for a mortgage? Watch your words!

Posted by Scott Van Voorhis May 16, 2013 08:31 AM

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Sure, the amiable loan officer at your friendly local bank may seem eager to please.

But beware. If you are too chatty, you could every easily wind up seeing your mortgage application suddenly vanish into the circular file.

Just take Fishwood, a regular contributor to the comments section on this blog, who claims to have both cash and excellent credit.

He lost out on one mortgage after the loan officer got cold feet over his commuting plans from his new house, which was a significant distance from the old one.

The second time on the mortgage merry-go-round, Fishwood thought he'd be smart and would preempt this line of questioning. He was still trying to buy the same house, which again was a hike from where he was working at the time.

So Fishwood up and announced his plans to seek a new job after he settled into his new house.

Bad move.

Here's Fishwood:

I told the loan officer that once we bought the new house I planned to find employment at the new location and then quit my current job -- all he needed to hear was that I planned to quit.

OK, let's go easy on Fishwood - he was trying to preempt a potential problem and instead just ended up tripping over himself.

But it would have made more sense for Fishwood to have been friendly and confident, but offer no substantive details unless asked, and then think very carefully on how to reply.

Who knows, the job question might never have come up. For the loan officer, your current employment is probably just a box to fill out, to be verified by pay stubs and a quick call to your company's HR department.

For that matter, there is definitely no need to brag or chat about your career ambitions, especially if you plan on starting your own business or simply launching out on your own as a freelancer of some sort or another. Hint, self employment income is the kiss of death.

This is not time for heart to heart conversation. When it comes to applying for a mortgage, it is a cookie cutter process, from start to finish.

This blog is not written or edited by or the Boston Globe.
The author is solely responsible for the content.

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About boston real estate now
Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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