It’s been over ten years since the housing market collapsed. If you're thinking about a mortgage now, here’s what to keep in mind.

Remember a decade ago? You might have had your first smartphone and streaming was just starting to take off. Mortgages were easily accessible back then.

Then, the housing market crash occurred, triggering a financial crisis that reshaped our economy.

Since that collapse, lenders have become more stringent, tightening their previously lax standards. Now, only those with excellent credit histories generally qualify for loans.

While the economy and housing market have rebounded, the latter is showing signs of cooling. Lenders have relaxed their credit requirements slightly, but borrowers still face stricter standards compared to the peak of the market.

If you’re returning to the mortgage scene or are a first-time buyer, here’s what you should know:

Proving Your Income is Essential

During the market boom, you could secure a loan just by stating your income, no documentation required. Today, both you and the lender must verify income, assets, and debts. “Each piece of data in a loan application has to be confirmed by an independent party, often more than one,” says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage.”

You’ll need to provide pay stubs, and your employer will be contacted to confirm your income and job duration. The IRS will also be consulted to verify your earnings from the previous year.

According to Ellie Mae, one-third of mortgage borrowers in September 2018 had credit scores below 700.

Loans Available for Those With Imperfect Credit

As of September 2018, about one-third of mortgage closings featured borrowers with credit scores below 700, per Ellie Mae, nearly double the proportion seen in 2012. Although it’s becoming easier to secure loans with less-than-perfect credit, expect higher interest rates that can significantly increase costs over a 30-year term.

To minimize these expenses, set up automatic bill payments and refrain from applying for new loans before your mortgage application, as late payments and new credit inquiries can harm your credit score.

Before applying for a mortgage, check your free credit report at annualcreditreport.com. “You should ensure there are no errors on your report and address any outstanding debts,” advises Lisa Piercefield, regional operations manager.

No Need for a 20% Down Payment

Several loan options are currently available, allowing a down payment as low as 3% of the home’s purchase price.

During the housing boom, many buyers acquired homes with zero down payments. However, when prices fell, many borrowers found themselves owing more than their homes were worth, prompting lenders to adjust their requirements for substantial down payments.

Now, the trend has shifted again. Although the average down payment for a conventional mortgage is around 20%, various programs exist that allow as little as 3% down, provided you’re willing to pay for private mortgage insurance.

Shop Around for the Best Deal

With rising interest rates and a slowing housing market, lenders are facing reduced business. This creates opportunities for potential borrowers. As lenders become more competitive regarding rates, fees, and terms, ensure you're getting the best deal by comparing offers from at least three lenders before making a choice.

While checking loan costs, consider the lender's communication style. “Your loan originator should be someone you can talk to openly and who addresses questions you didn't even think to ask,” advises Staci Titsworth, a regional mortgage manager.