The easiest way to contact several lenders or brokers is online. Let them compete for your loan. Today, most mortgage companies and lenders provide simple online forms or questionnaires. This way, lenders or mortgage companies can directly contact you to promote or discuss your mortgage loan and determine how they can best serve your needs. Once you have spoken with a loan officer then you can usually move forward with an application process for credit. As you receive offers from various lenders and brokers you need to compare apples to apples to make sure the pricing is comparable.
Ask each potential lender for a "no/no" which means a "no points and no origination fees" rate quote.
Also ask for detailed closing costs and a total cost to close. Closing costs should not vary too much because the costs associated with closing have standard fees in many states and county taxes, credit report fees and appraisal fees. Also keep in mind that closing costs on a Good Faith Estimate (GFE) are only estimates and may change at closing. Some lenders or brokers will even guarantee that their closing costs will not exceed the total closing costs on the GFE. Once you have the no discount fee and no origination point rate and closing costs you can better compare your mortgage offers.
It is clearly a big mistake to just ask for a mortgage rate or to call about a low rate you may have heard on TV or radio. Rates are determined by risk and each mortgage loan will carry a different level of risk and thus a different rate. Risk factors that determine rates can include the borrower's credit history, the price of the home
, loan to value (LTV) which is determined by the down payment and many other factors.
