Long gone are the days of the 100% stated income mortgage loans with a 620 credit score. Some high powered Wall Street executives took advantage of us all by promoting loans that inherently placed people in tough financial positions. We all see where that has taken us now. In fact, everyone sees it all over; there are a record number of delinquencies and foreclosures, millions of them. Why, because a percentage of these borrowers should never have received the loan they did. Our '10 Secrets to Better Mortgage Rates' can change a lot of things for a lot of people.

Maybe some people could afford a home, but just not the $350,000 one. The mortgage industry has a responsibility to educate our customers and build strong lifetime friendships. We must look at the long term goals of owning a home, rather than owning what we want now. Build yourself in the 'Best Borrower' so you can get the home that you have always wanted, it is really not that difficult. If you make your mortgage payment a struggle, it will only hurt you in the end.

There is something to be said about the years of 'buyer education' our parents went through to buy their first home. It created financial strength. Often times it took years to accumulate enough money to buy the American Dream. Imagine both the financial commitments and attention to credit that must have had? Did you know that the subprime mortgage industry is really less than 20 years old? It was only recently that the birth of the 'not so perfect' credit mortgage and 'now you need less that 20% down' mortgages were born

Ironically, it's these new ideas that have allowed many more people to own a home. The United States has recently achieved its highest percentage of home ownership in our history. Obviously home ownership is great; however, it can show it's ugly face with foreclosures and all the stress it causes as well.

So we would like to offer you the '10 ways to be your best borrower in a changing mortgage world'. These may sound simple, but absolutely everything in this world has fundamentals and building blocks that we can apply if we are to get the most out of them. This guidance will make you a stronger borrower and will get you better mortgage interest rates.

1) Pay your rent/mortgage on time with checks. Lenders want to see a consistency in major payments. None are more important than your current rent or mortgage. Even if their landlord lives next door, pay by a check. Days of a private Verification of Mortgage have gone away. This stability in payment shows a stronger borrower.

2) When building credit, pay on time and avoid high balances. We are looking at buying a home twelve months from now. Pay a little extra every month. Stay away from programs that say "18 months same as cash". Most likely these programs will give you a credit line for the amount of the unit you are purchasing. ie. That large screen TV for the big game. The line is maxed when you buy the unit. New credit opened and then it's maxed. This has many negative effects.

3) Stay in that car for a couple more months. Get in the home and then go after the car. This can really drive your score down.

4) Buy a home within your means. This will allow you to keep the home and get the home that they want when they can afford it. This benefits all of us.

5) For cash paying incomes - Deposit your money first! Many banks have 12 months bank statement programs. This can allow you to avoid stated income products and higher rates. We all love our extra part time bartending job. Showing this income to a lender will help as well.

6) When paying down credit lines, keep them open. Don't pay them off. Credit lines that are paid off negatively effect credit

7) Educate yourself. Stay up to date on programs and industry trends. For example, right now a 40 yr mortgage is better than an interest only or a 50 yr program. The secondary market, which drives mortgage programs and rates, looks negatively on 50 yr and interest only products. When this happens your rates become higher.

8) Look at the benefits on refinancing. Most lenders use these guidelines called Net Tangible Benefits. This is there to protect you as a borrower. Are you getting 10% cash out? Are you lowering their payment by 10%? Are you moving from a Adjustable Rate to a Fixed Rate? If there is no benefit, think again. This is probably not the lender for you.

9) Know what payment will affect your credit the most. Your home and your car can affect you the worse. It can take 12 months to repair this damage. Don't ever think one payment won't hurt.

10) Before you refinance, can you take out a Home Equity Line of Credit? Most HELOC's do not have a prepayment penalty. Take one out to repair the credit and pay off debts and then refinance. Over time a borrower will save more then the costs of the HELOC because their mortgage interest rates are lower. 40 to 100 points in your score can make a lot of difference to your rate.

If you know the 10 Secrets to obtaining your best mortgage terms before you buy a home, you definitely will saves thousands of dollars.