Find the Loan Program that fits your needs best.
The most important part of getting the best mortgage for an individual is choosing the right loan program. Lenders have many programs with different qualifications. The most important factors include credit scores, documented Vs stated income, down payment, Loan to Value considerations, along with amount of savings.

We recommend that you speak to 2 to 3 lenders and see which programs they feel you can qualify for. Loan officers are better equipped to advise you as to which program would be best for you. Loan Locater is a great way to start this process.

Compare Properly (Remember to compare all aspects of each loan)
Lenders and their loan officers work on commission. Therefore, their fees are very flexible. Once you know which program is best for you, shop the rate and the fees, among 2 or 3 lenders who will compete for your business. Generally, the higher the rate, the lower your fees and, the lower your fees, the higher the rate. Ask each of your lenders to quote you on the same rate, with the same lock in period, and see what their fees will be.

Make sure you are pre-approved.
Buying a home is not an easy thing to do because there are so many factors one must consider. It is very important to conduct research, ask questions and study the process carefully. You can increase your chances of having your offer accepted by having a pre-approved loan.

Understand what a Credit Bureaus is and how it effects you.
A credit bureau is merely a clearinghouse for credit history information. When a consumer applies for credit (or in some cases - employment or insurance) the potential lender requests a copy of that consumer's credit report. The bureau then assembles the information from public records and from reports sent from past lenders. Then they sell this information in the form of a credit report to the potential lender who then decides whether to grant the loan or not, based on the credit history of that consumer.

Different Types of Credit Scores
Lenders use a number of different credit scoring programs to determine what kind of risk you are. The best-known credit-scoring program is FICO (which was created by Fair Isaac). However, there really are multiple versions of FICO and each can yield a different credit score for the same person. In addition to FICO there is CreditXpert, programs created by individual lenders, and even scoring systems that have been created by the credit reporting agencies themselves.

All of these systems can be used to predict your creditworthiness and they all run off the same point basis. The scale generally runs from the mid-300s to the mid-800s. Your numbers may vary by up to 60 points from one scoring program to another but your score should remain in roughly the same range.

Understand what your Credit Score number means.
Credit scores are a numerical representation that's obtained by using a formula to rate your credit report. Computer programs take your credit report, analyze certain factors, and then assign a number to you that's suppose to tell creditors of the likelihood that you will repay a loan or credit card on time. The higher the score, the better risk you are believed to be. Your score changes any time information changes in your credit report and if you have a short or incomplete credit history, it may not be possible to calculate a credit score at all.
Credit scores generally range from the 300s to the 800s.

The following is a break down of what your score may mean but keep in mind, different lenders often interpret these results differently:

Good Faith Estimate.
You must receive a written statement of fees associated with the transaction within three business days after the broker or lender receives your loan application. This is the best way to determine what you will actually pay for your loan and it is the law. Have your Good Faith Estimate with you when you sign your loan documents.

Get it in Writing.
You must insist that their best offer be presented to you in writing. Furthermore, insist on their offer being locked in for the same lock in period. Remember, lenders rates are better on a 30 day lock than a 60 day lock. Also, get a Good Faith Estimate of closing costs from each lender in writing. This is a standard form that all lenders use. Be careful here - it can get very tricky.

Compare Fees.
Ask the lender or broker to show you exactly which fees are going to the lender or broker's company. Compare only these fees between your 2 or 3 lenders. Don’t worry about 3rd party fees because these fees will be virtually the same regardless of which lender you choose. For example, your Good Faith Estimate may show different estimates for what your Title Fees will be. However, your Title Fees, Recording Fees, etc. will end up being virtually the same in total, regardless of which lender you choose.
You should add up and compare only "bank" and "broker" fees. These include origination fees, points, discount fees, mortgage broker fees, application fees, lock in fees, credit report fees, processing fees, document preparation fees, document review fees, courier fees, and any other fees that are going to the lender and broker involved.

Professional Inspection of a home is a must.
You must get property, roof and termite inspections of the home you are interested in purchasing so you know exactly what you are buying. The seller of a home is more inclined to agree to repairs if a professional inspector has recommended them.

Make sure you read all loan documents before you sign them.
In most cases, during your closing appointment you will not have sufficient time to read over all the loan documents. Ask your loan specialists for copies of your documentation so you may review them before the actual closing appointment. For the most part, the loan documents you will be signing are standard forms and are available for review.