Comparing Your Best Offers: At a minimum, you should use the Quoter to compare at least three loan offers. This way, you avoid unrelated factors that are beyond your control. A mortgage approval is nothing more than one person's or one company's opinion. Most people incorrectly assume, at any given time, that lenders are always actively seeking loans. But that may not be the case. Many factors impact approval, including a number of factors that have nothing to do with your application.

For example, cash reserve laws apply to all banks. These laws set exact maximum limits for the total of all loans banks make (based on a percentage the bank's total assets). If they go over, bank examiners cite a violation of law. Banks must also maintain a percentage of assets as cash reserve. When banks begin pushing their limits, they begin restricting loan approvals by increasing interest rates charged or rejecting applications for no apparent reason. They do not explain a rejection is because of their inability to make loans. Mortgage companies operate similarly.

The result? All lenders are different and motivated by factors beyond your control. If you apply and receive either high quotes or rejections, do not accept merely one or two opinions. The lenders Mortgage Quoter recommends have proven records for the best approval policies and most generous amounts available in the industry today. And all recommedations actively seek new loans. They need you.

How to compare approval offers: The best way to compare quotes is to use a consistent measure. We find that savings over a five year period produce the best results. And always use the same loan amount and period to compare offers. Comparing several new quotes to one another is easy. Simply add up the total of all payments and costs (for the same loan amount). The lowest cost will leap out. When quoted approval amounts are different, you may request a new estimate for payments and amounts from the lender if you do not feel comfortable calculating this amount yourself. Other somewhat more difficult decisions include:

• When to convert an ARM to a fixed rate in the economy today.
• Is shaving 1/4 point worth the effort for a $400 refinance cost? (Hint: with a $200,000 mortgage, you could save $9,600 over 5 years).
• The best way to negotiate reductions in interest rates, costs, and terms.
• Should I use a mortgage broker? And who pays the cost?

First look, then decide: These questions are somewhat more difficult because the answers depend on you - your goals, expectations, personal financial history, and your current situation. With only a small nudge, almost anyone can influence a mortgage company and create substantial savings over free quotes. The first step is approval. Then negotiation. Then complete your final comparison before you accept any offer.