Is It Really That Hard To Get A Mortgage Loan?

Now for all news content, which is the perception of many, and that's because we have spoiled in qualifying for mortgages by easing since 2004. But in reality, we are back to basics.

Qualifying for real estate mortgages are now back where they were before 2003. Who had applied for a loan meet the following criteria?

• Income (proved) that borrowers have enough money to not only the mortgage but also make other costs - such as utilities, etc., food, parenting, cars, insurance

• The income stated - are a joke. Never leave Bankers to this data if inspection is necessary. Under the old guidelines, a borrower any amount specify required to obtain the loan. I understand that the government revenue is gone. If you are able, a mortgage loan "stated income" be ready to get to pay higher interest rates and larger down payments offer.

Validate • 2 year tax returns and W2 income

• Good credit

• Cash for down payment, closing costs and prepaid - back account statements or other statements as evidence.

Should • relations front end 28 to 30% are, again proportions 36-38% processing (and if everything else was excellent, we were able to obtain permits times with 40% response rate).

Front-end ratio - the amount of revenue to the mortgage payment and escrow to cover - PITI - principal, interest, taxes, insurance and homeowner fees.

Back-end ratio - the amount of revenue required to cover the mortgage and non-recurring expenses such as credit cards, child support, car payments. Make sure that the borrower every month had enough money to pay for the necessities of life.

• The method of payment as at least 5%, 20% PMI (private mortgage insurance) by lender for less than 20% to eliminate required.

100% financing and in some cases 105% financing was never or low interest belongs experience still amazing.

The conclusion that we are now back to the basics and that's good for all of us - sellers, buyers and bankers. There is a difference in your income stretch a little and buy a way home beyond their means, especially with an adjustable rate mortgage. We should all be grateful for the due diligence now required to buy a mortgage.