How do I Shop for a Mortgage

What do i need to know when shopping for a Mortgage?

One of the things that you will absolutely need is a credit history from all three bureaus to make sure there is nothing that is derogatory or unknown on your report.

One of the first steps when shopping for a mortgage is to find a reputable mortgage broker. Whether you are shopping for a refinance or you are a first time home buyer a good mortgage broker can find the best mortgage program for your situation.

Make sure you don't have more than 2 (at the most) people pull your credit. Too many inquiries can actually hurt your score.

I recommend that you contact two mortgage brokers when you are shopping for a mortgage. By contacting more than one place you can better insure that you are getting a fair deal. A mortgage broker can do the shopping for a mortgage for you from this point on. That is what a mortgage broker does, he/she shops through hundreds of different lenders, sometimes possibly even thousands of different lenders, to find the "right" mortgage loan for you. While shopping for a mortgage can sometimes be a very daunting and exhausting experience for some, finding a good mortgage broker to work with you can eliminate most of this stress and the experience should be an extremely enjoyable one.

The most important piece of the rate-shopping puzzle is the Good Faith Estimate (GFE). This document will lay out all of the charges associated with your particular loan. You will want to carefully examine the fees that this particular mortgage broker is charging you.

It is equally important that the GFE be as complete as possible. Mortgage broker #2's GFE might have a lower closing cost amount than broker #1's did, but you will want to make sure #2 didn't fail to list certain items such as title insurance, transfer tax (if this is a purchase transaction), and tax and insurance escrow amounts (if escrowing). Some brokers will intentionally leave these items off of their GFEs, in order to make their initial quotes look more attractive.

Also beware of the bait-and-switch tactics used by unscupulous mortgage companies. Often...the rate you are quoted is not the rate you get at the closing table. At this point...it may be too late.

Shopping for a mortgage online can give you access to hundreds of lenders without having to speak with each and every one of them. We make all the major lenders, and some specialized ones which don't work directly with the public, compete with each other for your business, more efficiently than you can on your own. We also receive lower wholesale pricing and more flexible terms & conditions. Shopping for a mortgage online with us can greatly improve your chances of getting the best possible mortgage for your personal needs.

» DISCLAIMER: The information contained in this article on 'How do I Shop for a Mortgage' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.