I'm frequently asked how to find the best mortgage lenders. It comes with the territory. As a former bank loan officer and owner of my own mortgage company, I have an insider's perspective regarding the mortgage lending business. So I know what I would look for in a mortgage company and try to pass that on to people.

Here are a few simple yet effective principles that I encourage my friends to use.

First, look for a mortgage lender with a stellar reputation. Question neighbors, relatives and your buddies. Ask who they've used and if they'd return for their next mortgage. When you hear the same company name repeating in your discussions, pay attention.

Second, be on the alert for individuals. Is any certain mortgage broker frequently spoken of? Banks and mortgage companies usually employ a number of loan officers. It is important to have as much confidence in your home loan representative as you do their company.

Third, compile your list of 3 to 5 recommended mortgage companies and trusted loan officers.

Fourth, take action. Make contact using a short summary about what you are trying to accomplish. It is better if you write out your purpose ahead of time so you won't feel flustered or forget important ideas. It also helps clarify in your own mind what matters the most to you.

In one sentence be able to describe your purpose. Are you a first time buyer who needs help with pre approval? Do you need cash to update your kitchen or replace the roof? Are you expecting your ARM to increase at its next adjustment? Do you want a 30 year fixed rate mortgage with stable payments? Whatever your reasons to seek financing, be straight forward and to the point with the mortgage representative.

Fifth, after stating your purpose let the mortgage originator talk. She may ask you more questions. This is a good sign. It means she's being thoughtful and creative.

Sixth, ask what she would recommend for your particular situation, based on her knowledge and experience. Important! Take notes.

Seventh, check your response. How do you feel about the conversation? Your reaction can make a huge difference regarding the mortgage loan experience. Remember, a gut feeling matters.

Eighth, grade prospective lenders. By paying attention to their responses, rank them based on whether they sounded knowledgeable and if you liked them.

There is one more important element to finding your best mortgage lender, the internet. Online mortgage applications are being encouraged by most lenders. Although I prefer direct contact with my mortgage broker, I think it's an accepted fact that mortgage lending is moving to the internet.

For most of us, applying for a mortgage online may seem a little uncomfortable but there are great benefits included. Reducing expenses to lenders results in lower closing costs to borrowers.

So take advantage of the search function of your online service provider and your preferred search engine such as Google, Yahoo, Windows Live, Ask.

Type in your search words. Type in "mortgage payments", "home finance", "best mortgage rates", or simply your purpose such as "buying a home". Now you can relax while the search engines do your research.

Here is another little idea that may help you find lenders closer to home. Type in the name of your city after your search word.

Then follow a similar process that I outlined above except instead of talking to a loan officer, search through each website.

If you decide you want more information from a specific lender, you will probably have to fill out a brief online application. That is OK but be cautious. Unless this is a lender you are certain you want to work with, do not input your social security number.

There are two reasons for this. One is for security purposes. Safeguarding all three credit scores is the other.

Warning! Once a lender has your social security number it can be used to order credit. It seems reasonable to provide a lender with your social security number and once your final determination for a mortgage lender has been made, it will be necessary to give your social security number to proceed.

But here are the facts. Every time a lender orders your credit report, it can decrease your credit score, reducing your borrowing ability. So be safe and be smart. Wait until you've chosen a lender before providing your social security number.

As a side note, I highly recommend using a credit monitoring service such as Equifax or Experian to track your credit file so that you know before you apply of any credit issues.

Use these simple ideas when searching for a lender. Follow my 8 easy steps. Take advantage of the internet to search online. Protect your privacy and credit score. You will greatly improve your chances of finding the lender that is best for you.

Best wishes shopping for a mortgage company. Kate Ford