How many people today know whether they can qualify for a home mortgage? Do they know what is required to be approved for a mortgage? As regulations and guidelines continue to change, many people are finding that they no longer qualify even if they already own a home. The economy and market has changed so rapidly from just a few years ago that many people are unsure of where they stand.

Today's credit scores are required to be higher for a mortgage. For conventional loans, most lenders are requiring a minimum credit score of 720. Lower than that and a borrower may have to opt for an FHA loan. Many people who had high credit scores have found out that if and when banks lowered their credit limit, their credit scores came tumbling down even though they are not overextended and pay their debts on time. As credit reports and credit scores are very important in the mortgage lending process, consumers should always be aware of what is being reported and how it is affecting their scores.

Steady employment and income is necessary in order to obtain a mortgage. Pay stubs, tax returns and verifications of employment are all part of the mortgage process. Some people have found that although they have continued at a steady job during these trying times, it was necessary that they take a pay cut in order to stay working. Lower income has caused many people to become unqualified for a mortgage. Temporary employment and going from job to job just to survive has also kept some people from qualifying.

Even if you have steady employment and good credit scores in your favor, refinancing can be difficult if you owe more than your home is worth. Many people are bringing cash to closing to pay off some of the principal of the mortgage in order to bring the loan to value down to acceptable terms. With no available cash, these people will not qualify to refinance their mortgage at lower mortgage rates.

It seems like just yesterday everyone qualified for a mortgage. Today things are much more difficult. Not only are borrowers finding it difficult but lenders must be more aware of potential fraud being committed and because of this, the documentation and examination required for a home mortgage has become more intense for both the borrower and the lender.