Mr. Thrifty knows this maybe common sense, but you would be surprised at how many people don’t do this.  Just because you have a checking account with Bank of America that does not mean that they are going to have the best mortgage rates.  In fact, you may find the opposite- their mortgage rates are among the worst.  In Mr. Thrifty’s experience, very rarely do one of the big banks offer the best mortgage rates.  It is important to shop around.

Once you have decided to shop for your mortgage there are three ways to do so:

   1) Gather a bunch of mortgage quotes yourself

   2) Utilize a mortgage broker to get you several mortgage quotes

   3) Get mortgage quotes online

Mr. Thrifty recommends you choose option #2 or 3.  Trying to get mortgage quotes on your own is a VERY time consuming process (think: the guy in the Progressive Insurance TV commercial trying to get the insurance quotes).  Mr. Thrifty would rather be playing Halo2 or Frisbee golf than spending all of his time calling different mortgage lenders. 

Let’s start with option #2- mortgage brokers.  Mortgage brokers are not lenders but rather they “arrange transactions”- kind of like pimps but legal.  A typical mortgage broker will work with several mortgage lenders and may have access to deals that you may not be able to find.  You can find a good mortgage broker by either looking in the phone book or talking to friends and family. 

One thing to note is that mortgage brokers are generally not obligated to find you the best deal unless they have contracted with you to be your agent.  As such, talk to a couple of different mortgage brokers and get them to compete with one another.  Mr. Thrifty has also heard of mortgage brokers asking folks for an application fee.  Wrong! This is totally bogus.  If a mortgage broker asks you for a fee upfront, hang up on them and move along.

Another more recent phenomenon is to get mortgage quotes and information online.  The first place to start an online mortgage search is www.BankRate.com.  They have a huge list of mortgage rates as well as a litany of content.  However, as you start looking at mortgage rates, realize that the mortgage lenders who post their rates on BankRate are PAYING for the privilege.  As such, they do not offer a comprehensive list nor may the best deal be found here.  If you want to get actual mortgage quotes, there are a bunch of sites that are happy to oblige.  One good example is LowerMyBills.  It is pretty easy- you fill out a “simple” 50-question form and then “mortgage companies compete for your business.”  This can be a good deal as when firms compete for your business, you usually win. 

Mr. Thifty realizes that this sounds time consuming.  No matter which option that you choose, you are going to have to shop around to find the best deal on a mortgage.  There is no one “uber-source” of information- if you want the best mortgage deal you are going to have to spend some time shopping.