Spring mortgage guide

NEW YORK (CNNMoney.com) -- Spring time is almost upon us. That means homebuyers are awakening from their winter slumber. We'll tell you what you need to know if you're looking for a mortgage lender this spring.

A number of subprime mortgage lenders are in trouble. And to hedge their risk, lending standards have tightened. That means if you have less-than-enviable credit, it's going to be harder to qualify for a mortgage. You may need a higher credit score, says Greg McBride of Bankrate.com.

Current Mortgage Rates

Type	Overnight avgs

30 yr fixed mtg	5.34%
15 yr fixed mtg	4.86%
30 yr fixed jumbo mtg	6.51%
5/1 ARM	4.56%
5/1 jumbo ARM	5.25%
Find personalized rates:

Plus, you may be paying higher rates on your loan because lenders are commanding higher returns to compensate for their losses.

On the other hand, if you have good credit, you'll find that rates are in your favor. Even if you have decent credit, you may find your interest rate and terms to be worse than expected. That's because lenders are being more cautious with all borrowers.

Since lending standards are likely to be more strict, you should have a very good sense of what your credit history is like even before you start calling up mortgage lenders.

Some lenders may consider a FICO score below 620 to be more risky, but today, even if you have a slightly better score, you may be considered a risk. Make sure you try to improve your score as much as possible before you apply for a mortgage.

Don't wait until the last minute to search for mortgage options. You'll want to get offers from at least three lenders so you can compare the terms of your mortgage.

Every lender will provide different plans with different rates and different things tied to those mortgage plans. Start out by checking with major banks and lenders that you know of and of course investigate the recommendations of friends and family.

It all sounds like bad news, but if you're in the market to buy this spring, the power is on your side. You can negotiate your home price because the housing market is weak. In many markets, sellers are desperate to sell and buyers are few and far between.

Have your real estate agent come up with a price per square foot by evaluating houses that are on the market now in the area you're looking at. Those houses should be similar to the one you're looking to buy in size, number of bedrooms and baths, and other major features. This gives you a rule of thumb you can use to compare homes you're considering and know what price you should be looking for.

__________________________

Loan Center: Get the latest rates

Gerri's Mailbox: Got questions about your money? We want to hear them! Send e-mails to toptips@cnn.com or click here - each week, we'll answer questions on CNN, Headline News and CNNMoney.com.