There Are Plenty of Places to Get a Mortgage

Way back in the old days, like the 1980s, home buyers didn't think twice about where to get a mortgage.

They went directly to a local bank for home financing. They didn't shop rates, had never heard of a yield spread premium and didn't really understand loan points, but they were certain their neighborhood bank would give them a great loan. Nowadays, neighborhood banks are competing with credit unions, mortgage brokers and Internet companies for the same customer.

So which should a buyer choose? First, realize that all lenders are required to give a borrower within three days a Good Faith Estimate, which home buyers then use to comparison shop. However, not all GFEs are equal and the numbers on that estimate are not required by law to be accurate. In fact, the annual percentage rate (APR) can be computed a number of ways from Sunday, so a borrower can't use an APR for comparison purposes, either . . . read more about where to Get a Mortgage.

More Articles by Elizabeth Weintraub:

• Questions to Ask Your Lender
  
• How to Order a Free Credit Report
  
• The Advantages of Loan Preapproval

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