you are ready to shop for a mortgage loan, you can work directly
with a mortgage lender or with a mortgage broker who represents
many individual mortgage lenders.
Mortgage lenders are lending their own money, they have an
in-house mortgage program, and the mortgage lender makes the
final decision on your application. Mortgage brokers are
intermediaries who represent many lenders and mortgage loan
programs. If you have special financing needs or just want to
shop for the best mortgage deal, an experienced mortgage broker
may be the best choice.
Choosing a mortgage lender is only the first step. Other costs
that need to be considered and shopped for are: the total cost
of the mortgage loan, including the mortgage's interest rate,
broker fees, points (each point is one percent of the amount you
borrow), prepayment penalties, the mortgage term, application
fees, credit report fee, appraisal, etc.