All you see lately are ads for the best mortgage rates around. How do you avoid the lenders who just have come on ads to draw you in from the ones that you are going to get the most advantageous deal from?

Foremost of all, know your lender. If you don’t know the bank that offers the best rate, make sure you find out about it. The Better Business Bureau and the State Banking Commission will have lists of brokers that have an unacceptable number of complaints.

Make sure the broker has experience in your particular kind of mortgage. You also want to have a broker with ample experience, so ask how long they have been in business. Expert experience can make a big difference in how smoothly your mortgage process goes in the long run.

Conduct your research. As much as the internet has overloaded us with information, it has also made it easier to get the information that we need. But understanding the type of mortgages that are most advantageous for you, and the terms available will help you make your mortgage decision easier. Compile a list of rates for different types of mortgages and terms, so you have a good idea of what the going rates in your area are.

Make sure you understand for whom these rates are meant. Most of the time the published rates are for the most credit worthy borrowers, and premiums are added to anyone with a lesser credit rating. If your credit score is not the best, you may pay a premium above the quoted rate.

Once you have this thorough list, you can choose the lender that is best for you. Remember the old adage, if its too good to be true, it probably is not true. You are sure to find some differences in rates, but if one lender is inordinately lower than the others, this should be a red flag for you.

Take your time and don’t be forced to decide. If a broker does not take his time to explain, and give you time to decide, cross him off the list. You have to be sure you understand each aspect of this important matter. Walk away from any broker hesitant or unable to answer all of your questions.

Once you have agreed on the terms, get them in writing. Check that all conditions are in the written agreement, not just your rate and points. In the case of an adjusted rate mortgage, the index the ARM is fixed on should also be in the agreement. If you have a lock in period, make sure all of the details of it are in this document. Make sure this document is on proper letterhead and is signed by a representative of the company. Most headaches that occur with mortgages are a result of verbal agreements that are fast forgotten when the terms are no longer attractive to the lender.

When you do sign a written agreement, make sure you are clear about everything on it. Too often, what you have agreed to will be translated to in incomprehensible legalese. If anything is not clear, have it worded differently, or make notes as to the explanation to make sure it agrees with your interpretation. Once again, if the lender is not willing to do this, run away.

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