In today’s volatile mortgage/housing market, it’s critical to be prepared when entering into a purchase contract with a seller. Criteria have changed considerably when applying for a mortgage and one must be ready for much more stringent underwriting/approval guidelines. For example, agency (Freddie Mac) guidelines have changed regarding overall debt to income ratios – in other words the amount of total debt has been capped regarding acceptable underwriting levels.

So here are a couple of pieces of advice when preparing to meet with your Mortgage Banker to discuss your situation…

First – have all supporting documentation together and current. Bank statements and investments statements from two years ago are not relevant. Secondly – have all outstanding liens and judgments paid if possible – this makes it easier for the approval process to proceed without delay.

And when shopping around for mortgages make certain to consider a couple of different referral sources. Remember that rate is not the only thing involved in the mortgage transaction – transaction fees must also be viewed closely, as it’s the entire cost and the originators experience that you get with your mortgage that should help you weigh your decision.

Jeremy M. Salemson
CEO
Corporate Investors Mortgage Group, Inc.
www.cimginc.com