How to Conduct a Mortgage Lender Compare

There are hundreds of different mortgage lenders in America, and if you are considering securing a mortgage, it is imperative that you choose a reputable and financially sound institution that can provide you with the best overall financial package.In this article, we'll discuss how to conduct a mortgage lender compare.

Difficulty: Moderate

Instructions

1. Gather your information. Get a copy of all of your financial information, including your credit score, regular and supplemental income, and any debts. Take a long hard look at your credit score. If you notice any discrepancies, you will need to contact the reporting agency immediately so that they can clear it up. In addition, you should pay down debt and make sure that all of your accounts are current before applying for a mortgage.

2. Conduct preliminary research. Once you have your information, visit www.bankrate.com and input your state by using the drop off menu, and then view the current rate for your state. This will give you the average rates for a 30 and 15 year ARM. You will use this as your "marking point" to determine if you're getting a good deal with your mortgage lender.

3. Conduct your research. Now that you have your "marking point", you'll need to contact several banks and speak to their mortgage specialist. To find qualified leads, you can ask friends and family members, check the yellow pages, or ask your real estate agent for a referral. Next, you'll need to inquire about their available mortgage rates. Ask them about the APR and base rate, fees, whether points are required (to get lower rates), application fees, prepayment penalties, required down-payments (unless it is a refinance), and any other pertinent questions. This will provide you with an overall picture of their offer.

4. Weigh your options. Evaluate each offer carefully. Consider strength of the financial institution, available rates, fees, etc. Don't simply settle on the lender that offers the best rates. Consider lender fees as well as whether your lender can work with you to achieve your financial goals. In some instances, you may find that a lender will waive certain fees. Always get your offer in writing and to "lock" the rate to ensure that it is available when you're ready to conduct the transaction.

5. Negotiate for the best mortgage rate. Next, you'll need to negotiate for the best mortgage rate. Don't be afraid to pit two mortgage lenders against one another by showing them your written offers. After all, you must look out for your best interest when conducting a mortgage lender compare.

Resources

• Compare Mortgage Rates Here!

[Tidbits]

on 2/5/2009 Knowing the strength of the financial institution as you mention in step 4 is very important. Great advice!