Being Prepared For the Changes in Lender's Requirements

August 18, 2010

If you are planning on purchasing a property this year, be prepared for the large amount of your financial (and to some degree) history. If you own other property, the lender will want to know why you are purchasing the subject property. This is particularly true if you are not selling your present home.

Knowing the basic requirements can aid you in getting your finances in order. It is not that you will be denied a loan if these basic requirements are not met but it is highly unlikely unless you have additional proof of financial worthiness.

1. FICO score (credit score) of 720+

2. Verifiable and sustainable employment or self employment for the last two years.

3. One year plus of mortgage payments in an immediately liquid account.

4. No late payments or foreclosures on real estate debt.

5. Evidence of down payment funds.

6. Usually past two years of 1040 income tax returns.

A professional loan officer will assist you with guidelines for the documentation you will need. However, your prior preparation will make the process smoother.