How Do I Choose a Mortgage Lender?

When most people think about choosing a mortgage lender, they think about finding the lowest rate. Period.

Of course, financial considerations are important to every home buyer, and you certainly should consider the different rates lenders in your area offer on comparable loans. But you also want a lender you can trust, and someone you can work with effectively. So don't let rates be your only criterion. Here's the process we recommend:

1.Build a list of lenders. Talk to people you know who have bought or refinanced a home recently. Check the newspaper's real estate or business section. Or just look in the yellow pages under "Mortgages."

2.Talk to a loan officer. Call or visit the lenders on your list. Get a feel for what it will be like to work with them, and how they approach your needs. If you're still uncertain, ask for references -- recent home buyers like yourself -- and talk to them.

3.Compare rates for similar loans. Among the things you'll want to discuss with prospective lenders are the rates they offer on mortgages. But when comparing rates between lenders, be sure the rates are for comparable loans -- and remember to include fees and other costs so you're really comparing apples to apples.