Make a chart on which you enter each lender’s name, phone number, loan officer, rate, points, fees, lock-in period, and application fees. Often, local newspapers compile a similar table and print it weekly in their business or real estate section. These tables may have week-old information, so they should be used as a guide and not as a complete substitute for the one you compile yourself The mortgage business today is as much national as local, so you may want to include some large loan companies in your matrix. Finding information about loan terms is relatively easy over the Internet. A search of Web addresses under the topic of “mortgage loans” will give you a large cross-section of lenders from which to choose. You may even want to e­mail some of them for more detailed information.

You might also ask friends about their experiences with their lenders. Many times it is better to deal with a lending institution that has an outstanding reputation than to attempt to get the best terms. If you are working with a real estate agent, do not hesitate to ask for a referral. Agents work closely with lenders and they know which ones are the best for completing a sale. Recognize that federal law discourages an agent from referring you to a lender because that lender offers to pay the agent a fee. However, agents may refer you to a lender with ties to the brokerage firm, or the agent may have access to a computerized network that can process loans. There are disclosures required to alert you to these arrangements, so you probably do not have to worry about being taken advantage of in such cases. On the other hand, you should have a general idea of what kind of terms are available in the market before you select a loan through these types of referrals.

Rates have a way of changing quickly; so ask about the length of the lock-in (the period for which their rate quote will be valid) and the amount of the application fee. Some lenders will offer a 60-day lock-in but may want a 1% nonrefundable fee. Others will refuse to lock in, especially when rates are volatile, giving you the prevailing rate at closing. Beware of the lender with the lowest quote and a long lock-in.

Types of Lending Institutions. Most mortgage lenders, such as banks, sell off their loans to investors after the closing; often, even the right to service the loan (collect payments for a fee) is sold. Consequently, the identity of the original lender often doesn’t matter to the borrower, who may begin dealing with someone else even before making the first payment. (Keys 7 and 9 offer descriptions of mortgage lenders.)

Guidelines of income required for various types of loans are described in Key 18. Some lenders will pre-qualify you, that is, tell you how large an amount you can borrow. This can give you confidence, when shopping for a house, that you will be able to close, and will also expedite the closing time. However, most lenders won’t take you seriously until you show them a signed contract to buy a house.

When you approach a lender, have all of your financial papers in order. Make a list of your accounts: checking, savings, and debts. Include account numbers and balances. Bring copies of car titles. Bring a list of securities you own and their value. Bring copies of 1099 tax forms to show dividend, interest, and royalty income. If you own rental property, bring something to prove you get rental income. If either spouse is divorced, show proof of alimony and/or child support, whether paying or receiv­ing. List your jobs for the past ten years, with addresses, phone numbers, income, and supervisors. Bring W-2 forms for the past two years and your Form 1040.

Your lender will want a copy of the sales contract (not necessary for a refinancing) plus details of all the other items noted above. Help the lender to verify as this will expedite the loan process. The lender will want money for a property appraisal (about $400) and credit check ($50). Ask your lender how long the process normally takes. Call back regularly to be certain there are no unusual snags. Your seller and broker will also appreci­ate being kept informed of your loan approval status.