1  consider whether you are eligible for special loan programs such as VA Loans, Low-Income Loans, RWS Loans, etc. — see product information

2  decide on the term for your mortgage loan by comparing monthly payment amounts that fit within your budget; ex. 15-Yr repayment terms vs. 30-Yr repayment terms — try this calculation

3  compare the APRs among lenders (or brokers) with similar products — eliminate those lenders who have higher APRs — use this mortgage shopping worksheet as a comparison guide — FREE download

4  now view the products with similar APRs — compare the number of points lenders (or broker) charge for the product — view our notes on "points"

5  eliminate those lenders (or brokers) who charge higher up-front points — it will cost you more if you decide to remain in you home for only a few years

6  eliminate any lender (or broker) that has prepayment penalties — this will prevent you from prepaying down your mortgage — or negotiate to have this prepayment penalty clause removed

7  check the reputation of the lender (or broker) before you finalize your selection — do they service their customer, impose unnecessary fees, etc.

check your Better Business Bureau

lookup your local government consumer affairs division

Review this brief loan analyzer to link to product information that might fit your required needs.

Note: this guide only recommends mortgage products that address a certain need. Your actual need may result in a different loan selection.

1  if I could get a lower rate, I would be comfortable if my monthly mortgage payment changed:

1. Monthly
   
2. Every Year
   
3. Once after the 3rd or 5th Year
   
4. Never
   

2  I expect to remain in my new home:

1. For less than three years
   
2. Between five and seven years
   
3. At least ten or more years

3  I expect my income to increase significantly:

1. Each year
   
2. Within three to five years
   
3. My income is fixed and it will not rise significantly over time
   

4  I would like to repay my mortgage loan:

1. Quickly, so that I can build equity
   
2. At a normal pace
   
3. Within at least fifteen years
   

5  Select the answer that best describes your situation:

1. I don't have much for a down payment, but my gross income is above median levels. My relatives plan to help me with the down payment.
   
   
2. I have a small down payment and my gross annual income is below median levels
   
   
3. I am a veteran of the U.S. Armed Services
   
   
4. I am ready to build my own home
   
   
5. I am a first time home buyer with little-to-moderate income
   
   
6. I have an existing home to sell and plan to use the proceeds on a large, expensive home
   
   
7. I would like to use my investments as collateral for my down payment
   
   
8. I could use some extra income while in my retirement.
   
   
9. I plan to buy a home in a rural community
   
   
10. My credit is not so good, but I am working to clean it up