Choosing a Mortgage Company

The Internet has made finding a mortgage company easier and less time consuming. Do not automatically go with the California mortgage company that offers the lowest interest rate. Sometimes in order to get the lowest interest rate, the mortgage company in CA will add on fees for points and although the mortgage monthly payment will be lower, the upfront closing cost will be a lot higher. A point is equal to 1% of the loan amount. For example, if you are borrowing $200,000, an extra point will be $2,000 that you will need to pay at closing instead of over 30 years.

Talk to friends and family for recommendations about mortgage brokers and lenders that they were happy with. Check with the BBB to see if there have been any complaints against the company you are considering. Keep in mind ,that with national lenders such as Wells Fargo, Countrywide and Ameriquest, you may see a good amount of complaints just because of the sheer amount of business they do. Don't get discourage if you see those.