Hi Dana,
Gene and Stephen's answers were very well explained and stressed the importance of reputation and customer service over just finding the "best rate around". A good deal is a state of mind and you want a lender who will give you a competitive rate and fee structure and who will deliver on their promises, because the lowest rate in the world means nothing if they cannot deliver a loan closing on time with no surprises. Check on bankrate if you must to get a general idea of where rates range, but when it comes time to make a decision, make sure you are working with a local, reputable lender because rates should all be within 1/8-1/4% of one another - what you'll remember is the experience you had and whether it was a dream experience or a nightmare. Don't learn the lesson the hard way.

Best of luck

Dana:
Websites, such as the one you mentioned, are good for offering you an idea of what is available within the current market. My suggestion for your search begins however, with others you personally know that have closed a loan or are professionals within the real estate industry that you respect. They will provide you with reliable, dependable referrals and contacts. Ask around. Ask for references or testimonials. You will most likely begin to see names occurring over and over, pro and con. The positive referral professionals you are hearing about are the ones you should seek out and speak with.
Please remember too ... although very important ... rates should not be your sole determinator regarding your decision. Anyone can quote an unbelievable rate, but can they deliver on it? Search out a loan professional that has a good "closing rate". Much like a batting average, it will tell you how many loans they have delivered successfully to the closing table. THAT is what you are needing. Someone that can actually get your loan closed. Service is key.
Also, ask if the loan provider you are considering offers thorough and continuing mortgage planning AFTER your loan is closed. Will they continue to monitor the market situation, your financial scenario, your needs? This can be invaluable to your overall financial health. A professional mortgage officer should be your advocate before, during, and after your loan closes. This important service entails more than just a "rate watch" for you. Something to think about when you are considering the services on an internet only mortgage provider.
Best of luck to you in your new home search. If I can be of any service to you, please do not hesitate to write.
Thank you.

In my opinion, shopping on the internet can be dangerous. All you see disclosed are rates, which must be followed by an APR. When you see a big 'spread' between the actual rate and APR, it means there are lots of costs (fees and/or points) associated with getting that rate.

I think the best way to 'shop' for a rate is to ask your attorney or agent who they have had good experiences working with. While rate is a significant issue, saving 1/8% may end up costing you in terms of a delayed closing. I had 2 borrowers who applied for the same program, at the same rate, on/about the same day. They were also anticipating closing on/about the same day. One of those clients decided to cancel their application with me so she could save 1/8%. My buyer closed about 3 days after her scheduled date, which was due to repair issues. The other buyer who left for another lender ended up closing 5 weeks later due to lender delays and processing issues. Both buyers were very strong candidates for financing, with no qualification issues.

So, I think it's most important to know with whom you're working, rather than trying to ink out a small savings in the end. In all likelihood, you'll still get a very good deal. What you want is a 'good' deal (doesn't have to be the best), with exceptional service, and someone who will pick up the phone.

I was just in Costa Rica on vacation, but managed to stay in touch with my clients who were closing at the end of July, just to make sure everything went smoothly. In the end, you'll remember the service...not the rate!
Good Luck!
Stephen

Hi Dana, Wells Fargo, Weichert Financial, BofA - all respected names that are getting deals done - start there. Rates should not vary greatly - but they do as do products so be sure you are doing an apple to apple comparison. If you'd like contacts at Wells Fargo and Weichert Financial, send me a quick email and I'll send them along.

The rates matter of course, in the end though, making it to the finish line in a timely fashion with your terrific rate in tact carries the day!

Good luck,
Jeannie Feenick
"Unwavering Commitment to Service"
Search the MLS at http://www.feenick.com

Hi Dana,

Go to http://www.Bankrate.com for daily rates and lots of good information on mortgage products and the lending process.

I also can give you the names of some reputable local lenders and reps.

I work throughrout Norhern NJ so if you have any further questions feel free to conact me.

If you are a first-time homebuyer you still have time to be eligible for a tax credit of upto 8,000 dollars.

Good Luck!
Eve Meyerson, ABR
Broker Associate
Coccia Realty
Rutherford, NJ http://www.ask4eve.com