Yuma News Now

Unfortunately, many of these families may be sitting on the sidelines, says Freddie Mac senior vice president Paul Mullings, because they are unsure about the new rules of the road for getting a mortgage.

To qualify for an affordable, conforming, conventional mortgage in today's market, Mullings says borrowers should have:

• A stable income;

• A good credit history;

• A commonsense down payment; generally about 5 percent for a conventional, conforming mortgage (fortunately, there are down payment programs for qualified borrowers);

• Documentation-responsible lenders today will want documentation verifying income (like W-2 forms, tax returns), employment, your latest credit reports, and assets such as bank statements to verify savings.

The lender must also obtain an impartial third-party appraisal complying with tough new rules to verify the house you want will secure the mortgage you need to buy it.

Borrowers still unsure about the new rules can ask a reputable lender to prequalify them for a mortgage. Think of a prequalification letter almost like a driver's permit that can:

• Confirm you can qualify for a mortgage;

• Tell you how much you can expect to borrow;

• Make you a stronger home shopper, since sellers won't have to worry about whether you can qualify for a mortgage.

During the prequalification process, the lender will review your credit, financial and employment information after you fill out an application and provide documentation. (There may be an application fee.) While mortgage prequalifications are only good for a limited time, they are still worth getting. Even though you will need to apply for a mortgage once you find a house to buy, your prequalification letter helps clear the way by telling home sellers you're road tested for the most affordable mortgage market in 50 years.

For more information, visit www.freddiemac.com/buying.