Comparing mortgage quotes is not an easy thing even with all the web
sites that claim to match you with the right mortgage lenders. Once
you fill out the online form to be matched, you still have to compare
mortgage quotes with those lenders. It can be quite confusing when
each lender tells you about a different loan program. One has a lower
rate, the other has a higher rate but not closing costs. What about a
pre-payment pentalty? That's just the tip of the iceburg of how
confusing it can be. Most people can get a better mortgage loan if
they follow these rules when comparing mortgage quotes.

First, determine which mortgage program is best for you. You can do
this by asking yourself this question. How long do I think I will own
my current home? If you think it will be more than 5 years, go with a
standard fixed rate mortgage. This will save you more in the long run.
If you are pretty sure that you may want to sell or refinance before
then, look at an adjustable rate mortgage that will give you a lower
rate in the meantime. If you are not sure, you can get suggestions
from mortgage lenders but do not jump into a mortgage application
until you compare that same mortgage program with other lenders as
well. This is an important step that most people forget when jumping
into getting mortgage quotes.

Now that you have determined which type of mortgage loan is best for
you, it's time to compare mortgage quotes. If you ask the same
questions to each lender for the same mortgage program, you will be
able to see which mortgage quote is better.

Questions to ask every mortgage company when getting your quotes:

What is the interest rate (we all know this one)

How long is the mortgage quote good for?

Most people forget that most mortgage rates change daily. Try and get
all of your quotes on one day, then compare. If you get quotes
throughout the week, you could get inaccurate results due to the
market changing. Remember, your quote that you got will not be good
the next day if rates go up.

The interest rate quoted is based on a lock of how many days?

Because most interest rates change, you have the option to lock in or
float your rate. If you don't ask to lock your loan, you can be
subject to higher rates if they go up. This can also give a mortgage
company leverage to do a bait and switch telling you rates went up.
Another reason to ask is that one lender might quote on a 15 day lock
and other will quote on a 30 day lock. The longer you lock in your
rate, the higher the interest rate will be.

If I choose to lock my loan, will I get the confirmation in writing?

This is very important. If you dont have your lock in confirmation in
writing, there is nothing you can do if the lender presents you with a
higher rate later. Never use a good faith estimate as a confirmation
of mortgage rate. This is a mistake that many people often make when
comparing mortgage quotes.

What are the closing costs associated with that loan?

Is there a pre-payment penalty and how much is it?

Stay away from loans that have pre-payment penalties

How much experience does the loan officer have?

This is more important than how long the mortgage company has been in
business. Look for at least 3 years experience.

Are there any upfront costs?

Appraisal is a standard upfront cost, but do not give a lender your
appraisal money until you are sure that they are the one you want to
use. Some lenders collect money upfront to lock your loan. Stay away
from anyone that does this.

Do I have to use your title company?

Many mortgage companies have part ownership of title companies. The
charges for this service can be much more than using your own title
company. You should compare title companies separately and use the one
that offers you the lowest costs. Besides, it's against federal law
for a mortgage company to force you to use their title company,
however many of them do not tell you of your choice. This one tip
alone will save you a few hundred dollars on your closing costs.

Can you have my loan documents ready 10 days prior to closing on my
home purchase?

This one will guard again being stuck at the closing table being stuck
choosing between your new home or giving it up due to loan terms you
don't want. Most people will sign when the home they want is on the
line and they don't have time to start the process over. If there are
any problems at the closing table, you will then have time to work it
out with your currrent lender or find a new one that can process a new
loan quickly.

Feel free to print these questions so that you can be most prepared
when comparing mortgage quotes. You can use this free mortgage advice
line to get all of your questions by an unbiased advice from the
author of this article.

www.Real-Mortgage-Quotes.com