In the newspapers, on TV and particularly on the internet, ads and headlines scream at you about the great rates and terms this or that lender can give you. How can all of them have the greatest rates, you ask.

If you want to avoid being taken in by such come ons, be sure you know the lender well. If the mortgage company or broker is a company that is not familiar to you, make sure you get all of their details. You can check with the Better Business Bureau or the state banking commission to learn if they have had a lot complaints against them.

Make sure the broker has experience with your particular kind of mortgage. You should also try to have a broker with a lot of experience, so ask how long they have been in business. Experience in closing thousands of mortgages can make a difference when you are closing yours.

Conduct your research. Yes, it is hard to separate the wheat from the chaff, particularly on the internet. But if you know which types of mortgages are available, and which are the best in your own circumstances, this knowledge will be useful. Compile a list of rates for different types of mortgages and terms, so you have a good concept of what the going rates in your area are.

Be sure you realize who the advertised rates apply to. Often the brokers will advertise excellent rates, but it turns out they only apply to top rated borrowers, and everyone else pays more. learn what those premiums are so you compare rates that will apply to your circumstances.

Once you have the average rates being offered, you can ferret out the scams. Remember the old saying, if its too good to be true, it probably is not true. You are going to see variations in the rate, however, if one broker is much lower than the others, proceed with care.

Take your time and don’t be forced to decide. Any broker who is not able to take the time to explain everything properly to you should be eliminated from your list. You have to be sure you understand each aspect of this important transaction. Walk away from a broker hesitant or unable to answer every one of your questions.

Once you have agreed upon the terms, obtain them in writing. Be sure all of the terms are in the document; a broker should not tell you “we’ll work that out later”. If you are inquiring about an adjustable rate mortgage, the underlying index should be specified. If you have a lock in term, make sure every one of the details of it are in the document. Make sure this document is on the firm’s letterhead and is signed by a representative of the company. The great majority of headaches that come up at a closing are because some points were verbally agreed upon.

When you receive the written agreement, read it and understand it. Don’t allow the lender to put in legal terms that you do not comprehend. If anything is unclear, have it reworded, or make notes as to the explanation to make sure it agrees with your understanding. This is another area where, if a broker does not agree to cooperate, you should not work with him.

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