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Daily Real Estate News | October 31, 2007
Mortgage Tips for a Tight Lending Market
Even home buyers with good credit may have trouble getting a mortgage these days.
Here are three tips for home buyers in search of the best deal.
- Conforming loans win. Keeping the loan below $417,000, the most that Freddie Mac and Fannie May will buy, saves big money since the rate on nonconforming loans is now a full point higher than for lesser loans. If getting the cash together is a challenge, Greg McBride, senior financial analyst with Bankrate.com, suggests taking out a small second mortgage or tapping an existing line of credit.
- Don’t rock the boat. "Anything that might disrupt your credit history will be seen with a more jaundiced eye," says Keith Gumbinger, a vice president with mortgage research firm HSH Associates. He says avoid big credit card purchases or, if possible, major life changes.
- Get multiple approvals. McBride urges borrowers to get advance approval from more than one lender, just in case the lender – not the borrower – goes under.
Source: Smart Money, Brad Reagan (11/1/07)
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