In the past two weeks, there have been a few more lenders who have closed their doors.

Overall, most lenders are tightening up their guidelines and being much more critical of any derogatory credit.

Last year, if you wanted to get a 30 year fixed rate mortgage or one of the popular ARM Interest Only loans, a 700 credit score made getting a loan approval for Stated Income 100% financing was a snap. Not so this year. This year, you should have a 740 credit score and most likely, 5% down. This is not the case with all loan programs, only some programs with 100% financing.

Unfortunately, many of the Stated Income loans made in the past few years have not "performed well". Not performing refers to the borrowers making multiple"?late payments or no payments"?on their mortgage. Last year, one 30 day late on your mortgage was forgivable. Today, you shouldn't count on it. If you do have a late payment on your mortgage, prepare a letter with a very good reason for the late or worry about getting loan approval.

Be very sure that your loan officer is asking about your goals as to how long you will stay in the property and the nature of your income. Please be sure that you understand the loan that you are taking out.

The average loan officer has been in the business only five years. Those five years were times of easier qualifying for loans."?The underwriting guidelines are changing, in some cases, daily.

I am being much more conservative with the ratios with pre-qualifying my clients. Being very realistic and up-to-date can save a lot of heartache down the road. It is important that your own loan officer is doing the same. It never hurts to get two different opinions for pre-qualifying as each loan officer might have different ideas and give you information that helps you make the most informed decision.

Preparing for your mortgage loan is critically important as 20 to 30 points can mean the difference between 6.25% with zero points to 6.25% with .500% charged to the borrower.

I recommend that you get to work four to 6 months prior to taking out your mortgage. www.CreditFitness.net

There is more information at"? www.MarySupinger.com. for various loan programs, loan glossary and an up-to-date newsletter for market conditions.