( from Nikki Nakano Guild Mortgage nnakano@guildmortgage.net )

Tip#1 Get a complete quote in writing for lenders rates and all associated closing costs.   The total cost of your mortgage includes the rate you qualify for, plus all the closing costs.   Advertised rates can be misleading as they do not include  your personal qualifications that determine your actual pricing.   Be sure that all loan origination fees, discount points, credit report, appraisal, title, escrow fees and any other lender fees are shown.

Tip 2.  compare lenders prices on the same day.  Mortgage rates change daily just like stock and bond prices.  Sometimes even during a day they can change. 

Tip 3.  Get an assurance as to any possible variance of rates and fees quoted.   A comprehensive quote should be accurate within $100 – $200.  If a lender won’t commit in writing, move on

Tip 4. Seek sound advice on when to look.   You can lock your rate at any point after you have an accepted offer and established a closing date.   Credible lenders track market activity daily and can provide accurate historical data showing you daily and weekly trends in the market before you lock.  Choosing the right day to lock is just as important as choosing the right lender.  Does your lender call with market updates?

Tip 5.  Choosing the right lender.  Major Bank?  Credit Union? on-line lender?  It is nearly impossible for any single bank or credit union to have the best rates in the market at all times given their process to obtain their money from Wall Street.  As you begin the process of obtaining a mortgage, consider the day you will lock in your rate.  Will your lender be in the best position in the market?  Lenders with a choice of institutions for obtaining money might be your best chance of providing you the lowest cost mortgage.