Find out if whom you are working through is a lender or a broker. Are they a mortgage broker or mortgage banker? If they are a broker, how are they being compensated? Is there a broker fee? Is there any additional compensation to the broker from the lender? Are you getting a lower or reduced interest rate because of this? Do not pay a middle person fees if it is not necessary. Do you want taxes and insurance in escrow? If you do, make sure that this service is available from the lender. Are you refinancing to get a lower interest rate? If you are not, refinancing is probably not in your best interest, unless the rate is at least 1.5% lower than what you already are paying. Try this amortization calculator to figure out your savings. Do not consolidate unsecured debt like credit cards, tax liens, hospitals or other debt like car loans into your home. It unnecessarily increases your chances of default and foreclosure. Make sure that you know what you are asking for and don't budge from that. For instance, if you want a 30-year fixed, don't accept anything else. Avoid balloon payments and adjustable rate mortgages if you are going to be in the house for more than 3-5 years. Avoid bi-weekly payment programs, they do nothing for you except gouge you. You can accomplish the same thing as a bi-weekly payment program by simply dividing your monthly payment by 12 and adding that amount to each monthly payment. By doing this you end up making an extra payment each year. Do not purchase any single premium credit insurance of any kind. There are mortgage insurance companies that have the same insurance and pay a monthly premium instead of a lump sum at closing. Is there any prepayment penalty? You can take one of these as a bargaining tool to get a reduced interest rate. But be careful, you can get trapped into a balloon loan or an adjustable rate that may adjust before the penalty expires. Avoid mandatory arbitration agreements. It says something about a lender if they are asking you to sign away your right to a court hearing or jury trial. Remember that the note rate and the annual percentage rate (APR) are two different amounts. The APR is always higher because they roll all the closing costs and title charges into the amount financed. Within three days of application, the lender or broker is required by Federal Law to give you a Good Faith Estimate. At least 24 hours before the closing of the loan, the lender or broker is also required to give you a Truth-In-Lending Disclosure or TILA. A federal law called RESPA (Real Estate Settlement Procedures Act) gives you the right to access closing documents at least 24 hrs in advance: 12 USC 2603(b). You must request these, however, or you will not see these documents until the day of closing.