Once you have decided to go with a certain loan program, and find out current interest rates, you can begin shopping interest rates among lenders. To find the best possible deal, you should do some research and compare the mortgages offered by several lenders before you commit to borrow. It isn't always easy to compare loans because your mortgage rate is only one part of your mortgage loan. You should also compare points and other fees. There are a number of different fees involved in getting a mortgage that can add thousands of dollars to the cost of your loan, and some lenders have different names for them. One lender might offer to waive one fee and then add another one. Comparing what different mortgage brokers and lenders are charging you to get an interest rate is often the most difficult part of mortgage shopping.
Before deciding which mortgage to get, look at the whole product. Pay close attention to the terms of a loan including the type of the mortgage, the presence of prepayment penalties, low or high downpayment, mortgage insuranse requirements, payment schedule, lock-in period and many other features. Pick the loan with the rate and other terms that suit your situation best. For example, prepayment penalty clause can be very important if you are planning to sell your house or refinance in the next 3 - 5 years, or if you expect to prepay your loan.
Once you have decided to go with a certain lender (or broker), ask him to specify the documents you will be required to provide for the approval process. Find out also whether the loan application and the lock-in fees, if any, are refundable if your application is rejected.
