by Brian Cody

Created on: December 30, 2010   Last Updated: January 04, 2011

Your goal as a potential home owner, is to find a mortgage program where the mortgage payment will fit your budget. Since the early 2000's to 2004 time period, mortgage underwriters guidelines have considerably tighten. This was due to the high mortgage foreclosure's that were engulfing the national crisis.

 Mortgage underwriters will review your credit profile to determine your qualifications for your mortgage application.  Underwriters will review your credit payment history, your debt to income ratio, your current assets,  to verify that you can qualify for a mortgage program approval.

 Prior to shopping for a mortgage loan it is critical for your as a mortgage applicant to obtain a copy of your credit report.   You need to know and understand your credit payment history. You can obtain a copy of your credit report from Equifax (800) 637-2422, Trans Union(800) 888-4213 or mycreditscore.com.   For business owners who have a business credit profile, you can obtain a copy of your credit rating from Dunn & Bradstreet,  www.DNB.com (800) 234-3867.

 Mortgage under writers have mortgage guidelines to follow. Your mortgage application will need fit within those underwriting guidelines in order to get a mortgage approval.    Think of the mortgage application process as a 4 legged stool. 

 The four parts to the mortgage approval process include your credit profile, and debt to income ratio, your assets and income verification, and finally your property appraisal of the home you are purchasing.   The loan of value ratio (LTV) will have an affect upon which mortgage program you qualify.    So long as all four legs fit in the  mortgage program guidelines,  your chances of being approved for your mortgage application will increase significantly.

 Credit profiling is the life blood for the Real Estate mortgage industry.  With that in mind it is critical that you understand and review your credit profile.  With today's mortgage industry standards mortgage loan programs will only consider a FICO score of  620 or above to be considered for mortgage loan approval.

 A FICO credit score between 620 to 700 is now considered "B" credit grade.  Credit scores that are between 700 to 800 are now consider "A credit grades.  The lower the credit score the higher your mortgage payment will

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