Today sellers demand, and buyers really need to be as strong as possible. Banks are actually lending out money, but on traditional terms. Today full documentation underwriting is the norm, unless you're all cash. You'll need to have your credit pulled, submit your application, employment information, and bank statements to obtain what sellers expect: a very strong pre-approval letter from a reputable lender/broker. My sellers demand I only work with strong buyers. So, if you aren't strong, you may want to work with a different agent. If we're representing you, then be prepared to also get pre-approved with the seller's lender when submitting an offer. Today, this is what creates a strong buyer:

1. Strong FICO's
2. Strong Cash Position/Downpayment
3. Strong Employment
4. Strong Debt Ratios

1. Strong FICO's:
Your lender will need to verify a FICO over 700, 680 at the lowest. Ask your lender/broker to provide your "score" page that's usually either the first or last page of the report (depending on the credit company used) and black out any social security and other account numbers. FICO scores pulled over the internet aren't very reliable for mortgage purposes. If they've been done by another mortgage company in the last couple of months, then those are fine.

2. Strong Cash Position/Downpayment:
If you aren't all cash, then your lender will need to verify your cash position. Bank statements, stock accounts, trust funds, and liquid investments may be used. Sometimes gifts are acceptable. Based upon your FICO and cash position/downpayment you'll see exactly where you fit in according to CURRENT loan products available, as they have, and will continue, to change constantly. For a house, duplex, triplex and 4plex you'll need 10% minimum. Land needs 50% minimum. Commercial (5+ units, office, retail, general commercial) underwriting is not focused on credit and personal income, it's focused upon net income and specific DCR (Debt Coverage Ratios), usually 1.2 DCR, but generally 30% down. Today, and probably throughout 2008, appraisers are reporting a "declining" market on their appraisals, which makes lenders very cautious, thus requiring higher FICO's and stronger cash positions.

3. Strong Employment:
No less than 2 years employment. Same line of work for about 7 years and just changed jobs about 6 months ago, with no real major gap in employment time? Should be no problem. If you're self-employed you'll need to submit tax returns for 2 or 3 years.

4. Strong Debt Coverage Ratios:
Lenders never really diverged from debt coverage ratios. With the old stated loans they were able to MAKE the file fit the ratios needed. In general, if you take the new mortgage principal, interest, tax, insurance (PITI) and add to those the minimum monthly payments of all credit card debt and other payments from liabilities that appear on the credit report and divide that total by the gross monthly income, then the ratio should be in the mid 40% range

Do you need to be referred to my personal lender, or a few different lenders I've successfully worked with? Just ask.

Are you ready? Then let's start writing offers