Idaho Mortgage Information

One of my mortgage bankers indicated that many of the lenders have tightened their standards on subprime mortgages. A Federal Reserve survey provided further evidence of the spreading problems in mortgage lending industry
The Fed survery found that 56.3 percent of banks responding reported that they had tightened their lending standards for subprime mortgages, (loans offered to borrowers with weak credit histories.)
It also found that 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages which are defined as: adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes.
The Federal Reserve survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat."
In other words: "Get your pre-finance completed early to eliminate wasted time and effort."