A broker is a good start. Note that if you make separate applications to a number of institutions, your credit score will suffer each time someone runs your credit report. Better to be prepared with your credit report before you talk to anyone, Check Annual Credit Reports for legit services.

Here is a link that might be useful: Annual credit report

Sushipup, I believe lenders have a way of obtaining a credit report w/o the inquiry being used as part of the next score.

When I shop for a mortgage, I call at least 3 banks, but also look at online offerings like Quicken Loans, and ask them for 3 pieces of data to make an apples-to-apples comparison:

1. Current mortgage rate for a 15-year mortgage (or whatever you're shopping for), with best credit risk (this is typically their baseline that they quote; borrowers with worse credit end up paying more).
2. How many points are charged for that rate. In actuality, I ask them for the lowest rate with no points, to make it a simple comparison.
3. What are closing costs, not counting prepaid interest or taxes.

You can get all of the above info without anyone pulling a credit report. I line them up, see who's got the best package, and then dig in deeper with them, considering whether an ARM would be a better deal or whether paying points would be worth it.

And then you just need to work with the bank you've selected on the application, credit report, etc.

A broker can shop you around to multiple lenders, but they won't have all lenders, so I always call banks directly as well.

FWIW, my benchmark is that closing costs should be around $2K, not including prepaid insurance, stuff that's escrowed, points, etc. If someone's a lot higher than that, more investigation is needed.

First, know what you are shopping - pick a product, 30 year fixed or 10/1 or 7/1 - but shop apples to apples. Know your score, or set a baseline to do your shopping ("assume my score is 720"). Next, know your down payment. Know your closing date (so you know how long of a lock you need). (And, don't tell these lenders if your closing is more than 60 days out - once you alert them your closing is beyond a typical lock period, you risk getting quotes that won't be true or can't be locked in and they are gambling on that).

Don't let the loan officers confuse you with LPMI, BPMI, super single premium MI,...your PMI will pretty much be the same between lenders. And, be sure you shop rates after they've been set for the day and call those you are shopping on the same day.(important)

I also recommend you put a credit union in the mix for a quote. I'll tell you why, I left a portfolio bank to work for a CU doing mortgage loans{{gwi:807}}......and you can't get more portfolio than a credit union (meaning they use their own guidelines and lend their own money) and we work broker hours (24/7). With all the new rules, credit unions{{gwi:807}} are flush with money to lend. But what is, oh, so awesome for the borrower, credit unions are not-for-profit, giving the borrower a great rate that is tough to beat.

Be sure you know where your loan is going once you make loan application. Ask point blank (and hopefully in writing) how many credit pulls will be done as a result of applying with you. You want to shut down those that send your social security number{{gwi:807}} to several investors for a credit pull by each. Know where your loan will be processed and where it will be underwritten and where it will be closed from. Understand where your loan travels. Yes, even in this electronic age, the further apart the participants, the greater the miscommunication.

Good luck, don't let anyone off with explaining the things you don't understand (as they are said). Your money, your rules.

This post was edited by mandyvilla on Mon, Dec 8, 14 at 21:36

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Use the services of credit brokers. They can compile a list of banks according to your criteria, such as those with low mortgage rates and a large network of ATMs where you can make payments without commission. And based on my own experience, tell me which organizations are more likely to get a loan, and which lenders carefully check the solvency of borrowers. Also, recently, reverse mortgages have become more and more relevant, which brokers will most likely also tell you about - goodlifehomeloans.com. If you are already a fairly old person, I especially recommend considering this option.