Submitted by TERI TREADWAY , Wednesday, 26^th March 2008

What does this mean for the average buyer, and what changes should he or she expect when purchasing a home?

• Stricter underwriting guidelines for qualification
• New disclosures at closing
• Down payment increase for borrowers having credit scores below new limits
• Required private mortgage insurance protection
• Increased documentation requirements to support and verify the statements made on a loan application.

Credit scores will continue to play an important role in obtaining a mortgage loan, probably the major determining factor in the interest rate, as well as the amount of the required down payment.

We asked Mr. Laird, who is a frequently sought-after national speaker on mortgage issues, to give us the bottom line. Based on current market conditions, what should the average buyer look for when choosing a mortgage lender? Again, his answer was quick and to the point.

“Choose a reputable, experienced mortgage lending company that is financially strong, has been in business for numerous years and is currently financially well positioned—primarily one that does not originate sub-prime loan products or other loan products that are not generally beneficial to clients.”

“Choose a mortgage lender who has a strong warehouse line of credit and a strong percentage of liquidity in tangible net worth.”

“Choose a mortgage lender who provides in-house processing, underwriting, closing and funding functions and thereby controls processes locally and expediently.”

And finally, “Choose a lender who has access to loan products and the pricing of numerous national investor sources to make sure that every reliable loan program is available to you as a client.”

His parting comment was that a mortgage company should “help people purchase homes they can afford using loan programs that make sense for their specific financial situations. In essence, choose one that does business ‘the right way for the right reasons.’”

When carefully considered, the fear of making a move can not only be completely overcome, but also done away with entirely. While no investment is fail-safe, if you follow the simple guidance of a qualified mortgage lender, your mortgage payment can be a safe one.


Teri Treadway of Cornerstone Mortgage Company, a seasoned veteran in the mortgage lending industry, is staying ahead of the changes. Call her at 832-379-0600 or visit her website at www.teritreadway.com.

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