The big day has finally come. You’re ready to buy your first home, and you’re full of excitement and anticipation. But wait a minute! As you start looking for homes, have you thought about what type of mortgage is best for you?

It’s easy to get swept up in the rush of finding the “perfect” home. But spending a little time on the front end determining which loans you might qualify for can help prepare you for what lies ahead. But you may also feel overwhelmed by all of your options, especially if you’re shopping around for the first time. Don't worry—we've got some tips that can help!

Shopping around for a mortgage is a sound strategy to save money on your home loan, but it also takes some time and effort. But it can pay off big time. If you get multiple loan quotes, you can save an average of $1,500 in just 30 days by comparing lenders.

Home buyers who do mortgage loan shopping can avoid leaving money on the table. Sure, it’s not as simple as doing a Google search for the best rates (although we’re working on that!). Yet simply calling up two or three lenders and getting rate quotes can make a big difference in what you pay — and how quickly you pay off your home loan — over the life of your mortgage.

Shopping for a new mortgage can be exhausting, but it pays to take the time to consider multiple lenders when buying a home. Whether this is your first home purchase or your third, there are plenty of ways to benefit from shopping around.

When you're shopping for a mortgage, it can be tempting to just go with the loan that offers the lowest interest rate. But make sure you don't overlook other factors that may have an impact on your financial well-being when you're discussing terms with lenders. So we wanted to share some tips with you.

• Finding the right lender

The first step to finding a mortgage loan is finding the right lender. And that's where things get fun.

When you're looking for the perfect lending partner, there are some great places to start: your local friends and family, your real estate agent, and online reviews.

When you talk to your friends and neighbors about who they recommend for a mortgage loan, it's important to keep in mind that their experience will be different from yours: they're buying a different house with different financial circumstances—so don't be afraid to shop around!

Your real estate agent will also have some great recommendations for lenders, since they know the industry very well. But again—it might not hurt to look at other options so you can be sure you're making the best decision for yourself. Look at more than one lender's offer before deciding.

And finally, don't underestimate the power of customer reviews! Those personal stories can really help paint a picture of what it will be like working with a certain lender.

• Go in for your intro meeting with a loan officer

The first thing to remember is that the meeting with the loan officer is an intro meeting. You can meet with the loan officer to discuss your situation and get information. They can help you understand what the mortgage process looks like, how it works, and what they need from you. They will also ask you some questions and may help you understand what loan types are available to you, but they won’t be recommending specific loans at this point.

You should also have a list of questions ready for the loan officer. After all, this is your introduction to the process and you want to make sure you leave feeling prepared and confident, not confused or nervous.

Finally, it’s important to remember that everything discussed in this initial meeting is confidential; your lender will not disclose any information about your finances or credit score unless you explicitly grant them permission to do so.

• Get and Compare Financial Information

If you're comparing loans from multiple lenders, the best thing to do is get apples-to-apples information. Then you can make sure you're finding the best deal for your financial situation.

Whether you're looking at the federal form called a loan estimate (LE) or a precursor form called the fees worksheet, you'll see a breakout of closing costs. To compare the lender financials, you'll want to drill down to origination charges in the lender section. 

Make sure you're comparing apples to apples. If one lender is offering a 30-year fixed rate at 2.875% with no lender fees and another is offering 2.75% with $1,500 in lender fees, those are unlike products. Get the fees at the same rate to find out which is less expensive.

• Getting Pre-Approved

Lenders will give you a letter stating how much money they're willing to lend you, and for how long. It's important to get preapproved before you start shopping for a home, because it gives you a clear idea of how much house you can afford.

Preapproval letters are often necessary when making an offer on a home. When a seller lists their property as contingent on financing, they'll want to see proof that the buyer has been preapproved by a financial institution. This shows them that the potential buyer is serious about purchasing their home and can actually pay for it.

Being preapproved also lets you know what monthly loan payments are within your budget before looking at homes in person or online. Without knowing this information upfront, it's easy to fall in love with a property that isn't financially feasible.

• Conclusion

The bottom line here is that there are likely to be a number of factors that go into your decision about what bank to use for your mortgage. Take the time to examine all the details, and don't just focus on finding the best interest rate. Shopping around can save you money—but only if you do it properly. We always recommend talking to a few options and making sure you know what the payment will look like and the terms. Remember not all lenders are created equal too though. So in addition to rate we want to help you make sure they’re a great fit and that they’re going to give you the same great service we would - meaning they’ll be on top do things every step of the way. Sometimes that is more important than saving a few bucks.

Knowing your options may help make this process more manageable, so don’t hesitate to contact us if you want to learn more about shopping around for a mortgage loan.

Thanks for taking the time to read this article, and if you have any comments or questions please feel free to leave them below in the comments section.