IN recent years, lenders have stepped up fraud-prevention investigations and checks on mortgage applications. For borrowers, this may mean facing questions on actions like accepting cash gifts from relatives for the down payment or signing up for new credit cards during the application process.

The research firm CoreLogic estimates that fraudulent residential mortgage originations will total $7.4 billion in 2011; the number is nearly 40 percent lower than the $12 billion in 2010, though the company attributes the decline to a drop in mortgage volume. (Mortgage fraud involves falsifying information to obtain a loan you otherwise might not have qualified for.)

Fraud-prevention measures — mostly required by federal regulators — look into where you work and live, how you use credit, and more.

The investigation process typically starts when you first apply for a mortgage and lenders verify your identity and Social Security number, said Jeffrey Lipes, a senior vice president of Family Choice Mortgage, in Rockville, Conn., and the president of the Connecticut Mortgage Bankers Association. Further inquiries — an effort to obtain a copy of a brokerage account, for instance — may require approval or assistance from the borrower, he said, but mostly “the consumer is not even aware that we’re doing it.”

Lenders also check to see if a borrower’s name shows up on the government terrorist lists, among other things, and they check employment and credit reports — then check them again, within three days of closing.

What are they looking out for? Here are four common triggers to increased scrutiny, and what borrowers can do about them.

A LARGE BANK DEPOSIT Lender are required by federal regulators to confirm that funds in an account come from bona fide sources, like a gift from your grandmother for the down payment. “We source it,” Mr. Lipes said — “find out where it has come from.” What constitutes a large deposit? That is based partly on your income, he explained. If you earn $5,000 a month and deposit an extra $10,000 beyond your paycheck, that may be considered oversized. Of course, if you were just married and received a bounty of checks as gifts, you might want have your marriage license on hand as proof, when you are providing your bank account information.

YOUR ADDRESS If you are buying a primary home three hours from Manhattan yet list your employment with a Midtown company, your case may draw scrutiny, said Jason Auerbach, the divisional manager for the Manhattan office of First Choice Loan Services. He suggests getting a letter from an employer noting, for example, that you are authorized to work from home four days a week. Likewise, a couple with three children who are buying a one-bedroom apartment may be scrutinized about whether this will be their principal home. Lenders want to make sure you’re the owner-occupant, not buying as a rental or to flip the property.

NEW OR UNDISCLOSED DEBTS When you’re in the process of buying a home, avoid taking on other debt. “Sometimes borrowers don’t think buying a new car prior to closing a loan is a problem, but it is,” said Carolyn Mitchell, a senior vice president of Aklero Risk Analytics, which provides software for mortgage quality control. Buying a sofa or a furnace on credit could also slow or even scuttle your mortgage closing, depending on your situation, if it pushed your total debt levels beyond acceptable limits.

INCOME ISSUES If you disclose that you earn twice what the average person in your occupation earns, you may need to document that discrepancy. Or if you used to be an independent contractor and were recently hired as a full-time worker, that might raise concerns, Mr. Auerbach said. It is relatively easy, Mr. Lipes added, to invent false documents that inflate incomes, so lenders routinely check with the Internal Revenue Service and other sources.

 -Clarksville Real Estate Blog is brought to you by the Vaughn Team.com You can view all their latest listings here as well as view all the Latest Clarksville Real Estate Listings

Your new Home in Clarksville TN

Searching for the perfect home for you and your family can be a long and stressful process. And then once you do find your dream home, you still have the moving to do! With that in mind, below is a checklist of friendly reminders and tips to ensure a seamless moving experience from start to finish.
    It is a good idea to create a notebook for all of your notes relating to your move, such as a schedule, this checklist, and a place to collect estimates and receipts associated with the moved. With regard to your new community, other details you will need to attend to include:
�� Transfer of Utility Service

�� Arrange for cable and Internet service, if desired
�� Identify the most convenient bank branch
�� Locate shopping and entertainment centers
�� Select convenient places of worship
�� Enroll in area fitness club, if applicable
�� Determine most convenient routes to area health providers, including hospitals, doctor offices, dentists, and veterinarians
�� Determine school locations, enrollment deadlines, and calendar
�� Locate police and fire stations
    Contact your insurance agent(s) to update your policies (health, dental, life, and automobile) and inquire about any changes that may affect your policies. Also, establish your homeowners’ coverage for your new home. It is often a good idea to contact your auto insurance provider first when shopping for homeowners insurance, as there are often multiple coverage discounts available.
     Go to your local Post Office to obtain a Change-of –Address kit. It is a good idea to make a list in your “Moving Planner” of people and businesses to notify of your move, especially family, friends, banks, creditors, and whoever else will require this information.
     If you anticipate packing your own belongings, stock up on your packing supplies (boxes, packing tape, markers, labels, newspaper, and any other item you will need). When marking your boxes, make sure to note the box contents, whether the items are perishable or fragile, and the room it belongs in. Remember to register to vote in your new community, and remember to have your driver’s license updated with your new address.
     Buying a new home and starting a new chapter in your life can indeed be stressful, but it is also supposed to very a very exciting and enjoyable time in your life! Moving to a new home is an adventure – you’ll get the chance to experience a new location, have a home to call your own, meet new people and friends and enjoy numerous other new experiences. By using the checklist above, you’ll be able to focus more on the fun and exciting aspects of moving into your new house. Often a fun thing to do to document your move is to take pictures or video. Before you move all of your belongings in, snap a picture. Take a picture after you’ve unloaded everything and then a few more a couple months down the road. Through these photos you’ll see the transformation from “house” to home