Ask about mortgage's annual percentage rate (APR). The APR takes into account not only interest rate but also broker fees and certain other credit charges that you may be required to pay, expressed as a yearly rate.

A mortgage often involves many fees, such as underwriting fees, broker fees and closing costs. Every lender or broker should be able to give you an estimate of its fees. Many of these fees are negotiable. Some fees are paid when you apply for a mortgage and others are paid at closing. In some cases, you can borrow money needed to pay these fees, but doing so will increase your loan amount and total costs. "No cost" loans are sometimes available, but they usually involve higher rates.

Negotiate:

Once you know what each lender has to offer, negotiate for best deal that you can. There's no harm in asking lenders or brokers if they can give better terms than original ones they quoted or than those you have found elsewhere. Once you are satisfied with terms you have negotiated, you may want to obtain a written quote from lender or broker. The quote should include rate that you have agreed upon and period quote lasts. When buying a home, remember to shop around, to compare costs and terms, and to negotiate for best deal.

Don't be afraid to make lenders and brokers compete with each other for your business by letting them know that you are shopping for best mortgage deal.

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