Shopping for a Mortgage Home Loans

Shopping for a mortgage home loan can be quite confusing for the average consumer.

There are so many different ads and websites that promise you extremely low interest rates, along with low or zero closing costs, and you don't know what to believe or who to trust.

Every day the TV and the internet are constantly bombarding the average homeowner several times a day, so you decide to call some of the advertisers and find out the scoop.

When you call, it seems each company has its own agenda to push on to you and your left feeling more confused than when you started shopping for your mortgage.

The following is a simple list of 7 things you should know and ask before you make your final selection.

1. Find a Mortgage Company that you want to do business with. Start with a referral from a friend, neighbor or relative and get the names of 2 or 3 companies you can call.

2. Check to see the company that you use is local, check the mortgage company's rating with the Better Business Bureau and review their complaints if they have any and find out their reputation, etc.

3. Call the mortgage companies for a quote by giving them your scenario something like this: I have a refinance, on my primary residence, my credit is excellent, the loan amount is app 250,000 and my home is worth app. 400,000.

At this point, the mortgage company should be able to give you a quote without pulling your credit until you are ready to lock in your home loan with them.

4. Ask them for the total closing costs for the rate and loan amount they promised you. Also, ask them if there is a no closing cost option for a higher rate and compare the monthly payments of each rate quoted. This will help you determine how long it will take to recoup your closing costs. You will also be able to see how much money you will save by refinancing.

5. When shopping for a home loan and comparing the closing costs/fees, it's best to do so in the same day. The reason for this is that rates and credits for the rates can change at least once daily, so by shopping in the same day, it is a fair comparison.

6. Ask the mortgage company if there are any costs associated with initiating the loan, like an application fee, or lock in fee. Some companies charge these fees upfront and you want to avoid any surprises when you select a mortgage company to work with.

7. Once you make your decision and select your mortgage company that you want to work with, and then lock in your rate. Failing to do so is a gamble and you can lose your "low interest rate" and closing cost credits quickly in the changing market.