Looking for a mortgage loan in Chicago? Your timing might be perfect

The Chicago Tribune recently ran an interesting feature looking at the tough market for residential mortgage lenders today. The issue? Mortgage interest rates have risen, so far fewer homeowners are interested in refinancing their existing loans.

This has led to a significant drop in business for many mortgage providers.

This, though, could be good news for anyone looking to buy a condominium or single-family home in Chicago: As lenders struggle, they might be willing to charge less in closing costs to nab the smaller number of borrowers out there today.

This doesn’t mean that you can expect a rock-bottom price for either a refinance or purchase loan. Lenders still have to make money. But you might find lenders more willing to offer lower closing fees as a way to entice borrowers today.

Lenders might also be willing to expand the number of borrowers they work with. Maybe your three-digit FICO credit score isn’t as high as you’d like. You might find a greater number of lenders willing to work with you today.

Just be careful. You don’t want to take out a loan that you can’t afford to pay back on time just because lenders are more willing to take chances today. Missing mortgage payments will send your credit score plummeting. You might also find yourself in danger of losing your home if you can’t affordable your monthly payments.

When you’re ready for a mortgage, then, be sure to shop around. You can work with any lender who is licensed to do business in your state. Ask lenders about the fees they charge and the interest rate for which you might qualify. Shopping for a mortgage loan does take more time and work, but the extra research will pay off at the closing table.