Today's mortgage lenders have a wide range of loan products and can find a loan for almost anyone.

If you are not an ideal candidate (i.e. less than perfect credit, variable income, self-employed, carry alot of other debt) you have to expect to pay a somewhat higher interest rate, but even 7% or 8% is a good deal when you consider that a decade ago people normally paid 11% - 12% for 30-year mortgages.

Most local banks and credit unions won't handle these higher risk loans; they are more conservative and they're concentrating on the low-risk customer. But just because they say no doesn't mean that you cannot find a loan.

You can go directly to a mortgage bank - I believe Washington Mutual is the largest loan originator in the U.S., and I know from my experience as a R.E. broker that they offer many specialized sorts of loans to meet varying needs. They have neighborhood offices nationwide and a website.

A mortgage broker can help. They are like personal shoppers for loans - tell them what you want and they search every loan currently available to find you the best deal, and guide you through the application process. The banks pay their fees, so it shouldn't cost you extra. If you have a real estate broker or attorney, ask them for a recommendation. Otherwise look on-line or in the phone directory for companies like Lending Tree, Wells Fargo, MoneyStore. In the New York area we use Manhattan Mortgage alot.

Good luck in your loan search!

Learn more about this author, Carol Bennett-Gerber.
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