Shopping for a mortgage can be a very frustrating experience unless you are prepared. Preparation is the key. Whether you're buying a home or refinancing a home, investigate all of your options to find the mortgage that will best meet your individual needs and circumstances. The following practical advice is intended to help make your mortgage shopping process go smoothly.

1. Make sure that the mortgage lender or broker you are using is properly licensed. All lenders and brokers are required to hold a license issued by the Department of Banking. If you are unsure, contact your state's Department of Consumer Credit.

2. Decide whether you would prefer to deal with a lender or a broker. A lender is limited to the products it services and often requires a higher yield to sustain profits. A broker, however, works with a network of many different lenders and usually can provide a lower rate with a wider array of products.

3. Another option for mortgage loan shoppers to consider is a rate and point lock-in agreement. A lock-in is a company's agreement to make a loan at a particular rate, with or without certain points, provided that the loan closes by a specified date. A lock-in agreement will protect against rising interest rates. Request a copy of this agreement.

4. Getting the lowest rate is very important. However, it does not always constitute the best deal for you. What you need to decide is this: at the rate you're looking for, which company is going to charge you the least in fees. Request in writing a good faith estimate. The key to shopping for a mortgage is to limit the variables. First, always compare companies' rates from the same day. Rates change daily and perhaps more than once a day. You must also know the lock-in term. Rates are locked-in in increments of 15, 30, and 45 day locks. If purchasing a home, make sure you are quoted a lock-in that coincides with your closing date on your purchase contract. If refinancing, make sure your lock-in time is convenient to your objective. Most common refinances are locked in from 30 to 60 days.

5. It is very important that you diligently meet all your obligations. Be sure that your application contains detailed and accurate information. If you are unclear about what is required, request an immediate clarification. Do not make assumptions. Comply with all conditions set forth in your loan commitment and, again, document your compliance.

Arrowhead Financial Group has made this process a hassle-free experience for thousands of home owners. Call (1-888-825-1177) or e-mail us for a no obligation quote and you too will experience the difference.

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