Selecting a mortgage may be the most important financial decision you will make. Most likely, you will be paying off this debt for years, and after all, the right type of mortgage will make a huge impact on your financial plan. We hope the following will help you shop for a mortgage most effectively.

First of all, it is highly recommended that you take the time to order your credit report from all three credit reporting agencies and check it for errors. An inaccuracy you aren't aware of could cost you thousands of dollars in extra interest or even cause a denial of credit; it is estimated that 50% of all credit reports contain errors significant enough for an individual to be denied a loan!

Secondly, tracking interest rate movements is recommended when shopping for a mortgage. Ask your lender what current mortgage rates are and whether they are going up or down. Mortgage rates fluctuate frequently. One day they are up, the next, down. It is very rare that they remain constant for any lengthy period of time. There are many factors affecting rates and it is often difficult to accurately predict interest rates as the national economy itself, but an understanding of key economic indicators can provide clues to the future direction of interest rates.

Mortgage rates generally rise and fall along with the yields on Mortgage backed securities. They reflect the overall direction of interest rates. By knowing your lender is tracking the market on a daily basis the borrower has a better chance of obtaining a competitive interest rate.

Thirdly, you and your lender should decide which mortgage program is the best for your situation. A mortgage is a major purchase, so it is important to know that you have the right program for you. Today's market offers borrowers a tremendous choice of loan products and new opportunities that never existed before, so it pays to educate yourself on the different types of loan programs.

Choosing the right type of mortgage requires you to review your financial objectives and ask a host of questions, such as:

• How long do you plan on staying in the house or with the loan?
• What amount of monthly payment can you comfortably afford?
• How much money do you have for a down payment?
• Is paying the mortgage off early important?
• Do you intend to make extra principal payments?
• Is your income projected to remain stable or increase?

Your personal expectations for the future of interest rates, your tax bracket, and your adversity to risk are also important factors to consider when choosing a mortgage loan.

Before deciding which mortgage to get, look at the whole product. Pay close attention to the terms of a loan including, the presence of prepayment penalties, low or high down payment, mortgage insurance requirements, payment schedule, lock-in period and many other features. Pick the loan with the rate and other terms that suit your situation best.

We look forward to assisting you. We are sure you will find the process rewarding.