I recommend working with a mortgage broker, as opposed to a bank or other lending service, Good Brokers not only know policies and histories of local lending agencies, but they know individuals within the different institution, and their knowledge and connections they will be able to get you the best deal possible. Find one whose commission is paid by the bank, it's one bill you should not have to foot.

Best Regards,
Alessandra Marx
alessandra@elikaassociates.com
http://www.elikaassociates.com

Hello J.P.

Just like purchasing everything, shop around to get the best deal that fit your requirements and constraints - Find mortgage brokers who can and will take the time to explain differnt loans and terms to you so you can understanind all options in order to make an educated decision on the best deal that suits you.

However, a best deal, when it is in close competition, can mean different things to differnt people. Can you pay points to buy down? Do you want to keep payment low and refinance in a few years because you expect your earnings to go up? Do you want to have a fixed rate mortgage for 30, 40 yeras due to comfort level?

I have a buyer who started out very conservative and wanted nothing to do with variable rate loan. After talking to a few mortgage brokers, he decided on one which totally surprised me. Both he and his wife are very smart, savvy and well educated, so I am assuming they found the best deal for them.

Talking to different mortgage brokers who either work directly for a lender or represent several lenders also allow you to get the best deal for the option you choose. Lenders come up with different programs with new incentives all the time. The one with the 'best deal' today might not have the best one tomorrow.
Keep shopping until you find the one that works for you.

Always shop the loan. Get as much information about the different products that are available. If your planning on moving in a few years, you may want a variable rate so you can have the cheapest money available. Always make sure there is no prepayment penalty and see if buying down your mortgage points is an option.

The best deal on a mortgage... what a double edged sword!

The best deal is finding the mortgage that you can afford and that fits your unique needs.

There really is no need to shop out a loan if you are already connected to an honest and well-heeled Mortgage Broker. If you do decide to check around, know your credit and scores (all three!) first by going online and purchasing a credit report. The free ones simply do not provide the right information.

With your MIDDLE SCORE in hand, you can talk to some brokers and banks and give them information like your assets, income, job stability and let them offer you a couple of different loan programs.

The difference in the programs from lender to lender to broker to broker may not be evident so you need them to send you a Good Faith Estimate AND TIL - Truth in Lending. If there is a particular broker that you "click with"... then let that lender see the other good faith estimates to compare apples to apples with you.

A good broker will TELL YOU UP FRONT if he/she cannot beat another offer.

If someone will not provide you with a GFE at all... even just an example, then move on. Let them know that you won't work with them without it.

The trick then is to find out what other fees you will be paying... just because the rate is better doesn't mean it is a better deal!!

With a buyers market in play when you are negotiating the purchase contract as part of your offer make it contingent on the buyer paying closing costs to include 2 points for loan reduction. Approach the loan companies advise them that you would like to buy down the rate. I was successful with one client looking to do just that. It results in a slightly lower rate.

Make a list of your priorities - ARm vs. fixed, risk tolerance, etc. Provide your list to at least 3 loan officers and ask them which programs they would recommend. Compare the answers that you receive.

J.P.,
Terri's advice is great! Choosing a lender is the first and most important step in purchasing a home. Be sure to consult more than one, compare APRs (Annual Percentage Rate), and most of all--fees. Application fees generally hover around $300 or less, but the other little fees can stack up. One loan can appear much more attractive than another until you add up all the fees and then compare. Read the fine print and do not ever accept a mortgage loan with a pre-payment penalty or negative amortization.

We suggest that you interview several mortgage reps in your area that have good reputations. Ask each to provide information on their rates, programs, track record and references. Working with a mortgage person should be a pleasurable experience. You may have to go through several in order to find the right fit for personality and program. Good luck!

Shop around. There is no obligation to you to shop around. But if you are going to shop, ask them not to pull your credit report each time. Shop to get the package you think is the best for you, then proceed with the credit reports, etc. If you like a certain mortgage company ove another but they do not have the best package, ask if they can match the one you want. Sometimes, they can do the same program. It is worth asking.

Get prequalified.