If you’re eager to take advantage of record low selling prices and jump into the homeownership game, be forewarned, say the referees: The rules of play have changed. To make the team and qualify for a home mortgage, you need to have a strong scouting report comprised of impressive stats as well as prospects for a reliable future.

Put simply, “The mortgage programs that were easier, quicker and required less paperwork of the past don’t exist anymore,” says Spencer Llewellyn, mortgage lending specialist, ENG Lending, Little Rock, Ark. “Only a couple of years ago, it seemed like anyone who wanted a home could get a home loan regardless of their income or credit score. But the guidelines for qualifying for a mortgage have significantly tightened in the last 12 months.”

Lenders have become “very conservative with their underwriting standards because of the mistakes made in the industry in the earlier part of this decade,” says Glenn Durr, president NJ Lenders Corp., Little Falls, N.J. “Many programs previously available, particularly those without income verification, have been eliminated.”

Underwriting guidelines for today’s loan programs, Llewellyn says, “require very thorough documentation of the borrower’s credit and income to ensure that they can afford their payment and their willingness to repay. It is definitely harder to get a loan today versus a year ago.”

Michael Brennan, home financing specialist with Private Sale Mortgage, Westport, Conn., says that aside from full verification of income and assets, tighter restrictions that borrowers must abide by include lower debt to income ratios and a higher minimum down payment.

Adds Llewellyn: “A conventional conforming loan can require anywhere from 5 to 20 percent down, depending on if the borrower can obtain private mortgage insurance for the loan. And PMI has been difficult to obtain recently. But FHA loans are very popular in today’s market, partly because of their low down payment requirement of 3.5 percent.”

Credit scores are another area where lenders have ratcheted up the restrictions. A FICO score of 740 or greater is needed to qualify for the best rates available, and most lenders now mandate a minimum score of 620, says Durr.

Homebuyers also need to have a sizeable chunk saved for closing costs, which can range between 3 and 5 percent of the total loan amount, says Ethan Ewing, president of Bills.com, San Mateo, Calif.

To increase your chances of qualifying for the right home mortgage loan and demonstrate your ability to afford the purchase, the aforementioned experts recommend the following “Do’s”:

Boost Your credit Score

First, examine your credit score, as determined by the three major credit-reporting bureaus (Equifax, Experian and TransUnion), for free at AnnualCreditReport.com. Correct any inaccuracies by disputing these items with the credit bureaus, says Ewing.

Pay Off Your Outstanding Debts

Improve your credit score by paying down your revolving credit, says Dustin LaPorte, mortgage loan officer and certified financial planner, Mount Pleasant, S.C.

Use Credit to Establish Creditworthiness

If you don’t borrow, the credit agencies have no information to rely on, says Ewing. Ask creditors for increases on your credit limits to help boost your debt-to-credit ration – just don’t tap into it. To ensure your greatest chance at the best loan and the most preferred interest rates, be mindful of these “Don’ts”:

Know What To Expect

Don’t rush into or have false expectations of the purchase and mortgage application process, which is much more thorough and can last significantly longer than it has in the past, Llewellyn says.

Sidestep ‘Fixer-Uppers’

Make sure to invest in a home inspection before agreeing to purchase any home, and talk with a trusted contractor to determine the true extent of needed works.

Don’t Cash Out at Closing

Taking a slightly larger mortgage and keeping some savings in the bank for a rainy day is a good idea, says Durr.

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