The most common way is to speak with several different mortgage lenders and record the information provided by each one. For this purpose we have a MORTGAGE COMPARISON FORM for you to use in Appendix B. On the form, record the names, addresses, and types of lenders you spoke to. Then list the types of loans offered, the points that would be paid, and the interest. You can then use this information to compare the rates and determine which mortgage is best for you.
Another way is by going to the website www.bankrate.com. This site is quickly becoming the premier location for information about mortgages. From this website you can compare mortgage rates from mortgage bankers, mortgage brokers, banks, savings and loan associations, and credit unions without picking up the phone. Bankrate.com also provides mortgage data to many of the major newspapers who print a mortgage guide comparing rates in their real estate section of the newspaper.
Make sure that you are done comparing mortgage lenders before you fill out the loan applications. Because it costs money to apply for a mortgage, most people will determine which lender to use and
then only fill out one mortgage application.
Mortgage companies are looking for:
• the borrower’s credit history and credit score;
• employer and income verification;
• the borrower’s minimum monthly payment obligations;
• a two-year history of residence; and,
• a borrower who knows the amount he or she is comfortable paying monthly for a mortgage.