What do I need to consider when I'm shopping for an FHA loan?

Shopping around for the right mortgage will help you to find the right loan type an the best deal. A mortgage is a product, just like a car, so the price and terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage, whether it’s for a home purchase, refinancing, or to tap into your home equity. Shopping, comparing, and negotiating may save you thousands of dollars.

If you've got some dings on your credit report, be sure to explain your situation to the lender or broker if there are extenuating circumstances. If your credit problems cannot be explained, you will probably have to pay more than borrowers who have good credit histories. Ask how your past credit history affects the your loan's interest rate and what you might do to get a better one. Shop around and negotiate the best deal that you can.

There are severaly place you can go to get your mortgage -- thrifts, banks, mortgage companies, and credit unions. You can also get a home loan through a mortgage broker. Different lenders may quote you different rates and fees, so you might want to shop around to make sure you’re getting the one that's right for you.

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