The period from 2000 to 2005 of lenders saying yes for a seemingly good loan without having sufficient equity and marginal credit are gone as lenders require more criteria. That's why it's a wise decision to shop around for the best rate offers. Keep in mind that although a particular lender offers an attractive rate, compare the APR(annual percentage rate)'s to really get a handle on the fees involved and see if it is worthwhile. Refinancing in today's lending bottleneck is not close to what it used to be just a few years ago, when borrowers with only a small amount of equity and with borderline credit scores were eligible to be approved for a loan. Nowadays above average credit scores, twenty-percent or more equity and very little external debt. In today's world, homeowners must have a credit score of 700, and if you desire the best rates, a credit score higher than 740 is necessary. And some lenders or mortgage companies require even more than that such as six-to-twelve months cash reserves in the bank. Homeowners whose credit score is not high enough to get the best loan rates, consider cleaning up your credit before beginning the loan process. Some ways to improve your credit are to pay down some revolving debt such as credit cards, pay off auto and student loans and to correct any credit reporting discrepancies with the major reporting agencies. Once you begin doing this the better rates will be offered to you as well.There are two more figures which will have a large impact in how much you pay for a mortgage loan: the loan-to-value ratio and debt-to-income ratio. These two ratios are the eye catchers for underwriters, loan agents and for senior loan approval.The ratio called the loan-to-value determines what your house is valued at related to the loan amount. Normally, low rates are provided to those acquiring a property under 80% of their home's worth. The debt-to-income ratio is a sign of your financial ability to repay your mortgage and is utilized by comparing your total monthly payments which includes your home, auto, credit cards, college loans, etc. relative to your gross monthly income. In previous years, lenders permitted borrowers debt ratios up to 60%. In the current mortgage environment, lenders want to see homeowners borrowing 43% or less. Obviously, a low interest rate helps your debt ratios remain low. This is what borrowers must understand. As the market experts and homeowners adjust to the guidelines, more loans will become approved and default ratios will fall off. As a result, this will correlate into lending standards perhaps becoming a little bit more lenient. Homeowners and new homebuyers are enjoying some of the lowest mortgage rates offered in over 50 years so with this in play maybe the floor has been made in the real estate market.