There’s one thing for certain: Dallas still remains a strong buyer’s market. If you are being lured into the market because of the competitive home prices and the near-historic-low interest rates, you may have begun thinking about the home process; in particular, the home loan process.

Regardless of whether you’re new to the Dallas home market, or you currently own a home, there’s one thing you need to know: rules have changed regarding home loans.

Unlike just a few years ago when it seemed that banks were lending money to anyone with a job and loan programs seemed too good to be true (they were!), today’s home loan programs are now reserved for those home buyers who bring good credit and a down payment to the table.

In other words, if you think you know about Dallas home loans, think again. Here’s how the game has changed in just a few, short years:

• If you are self-employed, expect to show your tax returns for at least the last two years. In addition, you may be required to verify your tax returns with the IRS before submitting them to the lender. You may also be required to show the lender that your business is legitimate, which includes showing the lender your business license, a CPA letter, your website or other business marketing, as well as your name in the phone book. If you think all of this is a bit extreme, it is just another example of banks reigning in Dallas home loans for individuals with less-than-ideal credentials.

• Banks are looking for any type of reckless spending when considering your approval. It is best to hold off on making any type of large purchase before applying for a home loan, as it will immediately do two things: lower your debt-to-income ratio and raise a red flag with the lender. In short, hold off on that boat purchase until after you close on the home loan!

• Only the best credit risks will be considered by lenders. So, what does that mean for you? It means that one of the first things you should do when considering whether to purchase a Dallas home is to order a copy of your credit report from all, three credit reporting agencies. Pay off any balances and collections and immediately contact the appropriate credit reporting agency if you notice any errors or discrepancies. Finally, look closely at your credit score. In short, most lenders now look for at least a credit score of 700 when considering individuals for Dallas home loans.

• Don’t head to a lender’s desk until you have saved at least 20 percent. Although there are still some lenders willing to extend Dallas home loans for individuals with less than 20 percent down, in general, you should play it safe with 20 percent down.

• After you have perused the MLS listings and looked at Dallas flat fee MLS services if you are also selling a home, consider what you are comfortable paying in terms of a monthly mortgage. Although the lender will give you an idea of what you can afford, the decision is ultimately up to you to decide how large of a mortgage you can afford. In other words, if the lender approved you for a $300,000 mortgage, but you are more comfortable with a $250,000 mortgage, go with your gut and stick to the lower mortgage.