Back when the real estate market was booming, you didn’t have to go far to find a great mortgage. Practically all of the lenders were eager to loan money for home purchases. Now that the real estate market has dramatically changed, the easy mortgage money is history. If you are in the market to make a home purchase, it is still possible to find a mortgage, but you are going to need to recognize that the avenues available for best home loans have dwindled and restrictions for home loans have increased.
Lenders today have become far more wary when it comes to making home loans and with good reason. Given the number of mortgage defaults, it only makes sense that most banks today have decreased their mortgage loans as well as tightened lending restrictions. There are even some banks that will no longer consider working with mortgage brokers, making it even more difficult to locate a mortgage loan in today’s market. So, what do you need to do to find a mortgage loan in spite of these problems?
The first step is to turn to the Internet. Shopping online has become quite commonplace today and that includes shopping for a mortgage. Browsing the web will provide you with some crucial information regarding current home mortgage rates. You should keep in mind that many of the mortgage sites you will come across actually act as a referral service and or not actual mortgage brokers or banks, but still, it’s a good way to become informed before you actually begin the process of shopping for a mortgage. Just make sure that you keep your confidential information private when you are in the early stages of research. You shouldn’t supply your social security number or any other confidential information until you are actually ready to apply for a mortgage.
When submitting information to receive mortgage loan quotes, make sure you enter only accurate information. Avoid the temptation to guesstimate when it comes to your credit score or income. If you aren’t sure about something, wait until you have the accurate information before you enter all of the data. Otherwise, the rate you are quoted could end up being much different than your actual rate based on your verified information. Get your free and best mortgage rate quotes here!
Keep in mind that if you are refinancing or if you are looking for a loan less than $417,000 then contacting your bank may be the best option for finding a loan. Sometimes banks are more willing to make a loan to an existing customer, whom, they already know. The key is to make sure that you’re working with a loan officer who truly understands the new regulations. The last thing you want is for your loan to fall out in the middle of the process because your loan officer was less than informed about changing underwriting regulations.
Working with a mortgage broker can also still be a good option. If you are a first-time home buyer, a broker can actually be an excellent asset. If you are trying to go it on your own and shop online there will not be a lot of support available. Working with a mortgage broker can provide you with the crucial support you need during the process. Also, a mortgage broker may be able to provide you with more mortgage options than you would be able to find on your own.
If you are planning to finance investment property or you are looking for a jumbo mortgage, typically more than $417,000, then it can also be a good idea to use a mortgage broker, who can help you look for lenders who will underwrite loans that are less conventional. Keep in mind that the more unique your loan needs, the more difficult it may be locate a mortgage at the current time, especially if you are trying to do it on your own. This is where a mortgage broker really excels.
Finally, when you do find the mortgage and rate you are looking for, make sure you exercise the option to lock it in, if the lender offers that capability. Remember, loan rates do not remain static. They can and will change from one day to another. Do not make the mistake of assuming that a loan rate will remain available. The best option is to make sure that you are ready to take advantage of a good mortgage deal when you find one, because they are definitely not as plentiful as they once were.