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I'm finally ready to buy my first home. How will the current economy affect my mortgage rates?

Posted by  on Apr 19, 2009
 


That depends on how much cash you're willing to pay up front and how well you've managed your money over the past few years. According to many experts, mortgage lenders have" rolled back" to the policies and protocols they used decades ago. Hoping to avoid the kind of lending that led to the subprime mortgage crisis, most lenders require higher down payments and higher credit scores from borrowers than they did only a few years ago.

If your credit has a few dings in it, don't worry. Be prepared to lock in something higher than today's best mortgagerates, and be prepared to pay extra origination fees in addition to your down payment. While you won't find many private lenderswilling to finance more than 80--90% of your home's value, investigate FHA and other community homebuyer options. You can use a stable employment history and community connections to find a fair financing deal.



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