Mortgage Rate News

Right now, the real estate market is suffering. But the lending market is suffering almost as much. Why? Because the subprime lending crash is still reverberating, and causing problems. Lending standards — especially in the subprime market — have been tightened. And, due to the increase in paperwork and documentation required to get approved, there is a bit of a backlog. This means that you could face losing your chance to lock in interest rates, or you may have difficulty getting everything squared away if you have unique circumstances.

There a couple of different ways to handle this situation, and they are addressed by Bernice Ross of Inman News. Here is what she says about applying at multiple lenders for your home mortgage:

The second way to handle this situation is to apply at two different lenders. The lenders don’t like it, but it can be a way to make sure that your loan will be approved. You can also achieve the same result by going through a mortgage broker who represents a number of different lenders. If there’s a problem at one, they can easily shift to a different resource. Alternatively, numerous online lenders have multiple sources to fund their loans.

As you can see, widening your options can help. That way, the first mortgage broker or lender to get you through is the one you can go with. Personally, I like the personal service one gets when you sit down face to face with a mortgage broker. Of course, I am also self-employed and have rather specific and unique needs. However, there are some great deals online, and if you have a situation that is fairly simple and straightforward, an Internet mortgage broker could be the way to go.

In today’s market, you need all the help you can get in preparing for and securing a mortgage loan in a timely fashion, so don’t be afraid to fully explore your options.

Tags: mortgage broker, lenders home mortgage, home mortgage loan, home mortgage,
applying home mortgage, subprime lending crash, real estate market