If you are in the market for a new mortgage you need to comparison shop mortgage lenders and loan offers. Here is what you need to know to find the best mortgage.

Once you have collected loan offers from several lenders how do you decide which one is the best deal? Most people simply compare interest rates; however, that is not enough when it comes to a mortgage. You need to evaluate the lenders, not just the loan offer. Here is how to find the best mortgage for you.

When you compare mortgage loans compare all aspects of the loans, not just the interest rate. The annual percentage rate is a good starting point for your comparison; however, you need more to make an informed decision. Ask each mortgage lender for a good faith estimate of all expenses, including the closing costs. Lenders are required to provide a standardized form with a breakdown off all fees and expenses. Look for any other charges that might not be on this list; prepayment penalties for example, are a sign that you may need to find a different lender. Pay attention to how cooperative the lender is answering these questions. If you feel the mortgage lender or broker is being less than honest with you, shop elsewhere.

Large mortgage companies are not always better than small companies. There are small lenders that specialize in bad credit mortgages for example. If you have special needs for your mortgage you may need to look for mortgage lenders that specialize in certain types of mortgages. A mortgage company