Before signing for a new mortgage loan it is important to compare all aspects of the mortgages you are considering. Many homeowners make the mistake of only comparing the interest rate or Annual Percentage Rate. Using these rates does not give you an accurate picture of total cost and could cause you to overpay for your new mortgage. Here are tips to help you find the best mortgage loan.

Before applying for a mortgage from any one lender, you should request a copy of the Good Faith Estimate for the loan you are considering. Lenders are legally required to provide this Good Faith Estimate upon receiving your application; however, most lenders will provide this document to you upon request. If a mortgage lender refuses to provide this document you should find yourself another lender.

Use The Good Faith Estimate

When you shop for a new mortgage you need to consider all of the fees, points, terms, and closing costs for each loan offer. The Good Faith Estimate itemizes these expenses and tells you who the fee is being paid to. Remember the law protects you when taking out a mortgage from unscrupulous lending practices. If you feel a lender is withholding information or pressuring you into a loan that you don’t want, find a different lender.

Keep in mind when shopping for a new mortgage you may be required to pay an application fee. Before you pay this fee ask the lender if the fee is refundable if you do not borrow from that lender. Pay close attention to these fees when shopping for a new mortgage and you could potentially save yourself several hundred dollars. You can learn more about shopping for the best mortgage, including common mistakes to avoid by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.