If you are in the process of refinancing your mortgage loan comparison shopping will help you choose the best lender. There are a number of costly mistakes homeowners make when choosing a mortgage lender. Doing your homework and carefully researching mortgage lenders will help you avoid making these mistakes; here are three tips to help you avoid making costly mistakes when refinancing your mortgage loan.

I. Look for a Lender With Good Customer Service

Customer service is an important aspect of choosing a lender but it should not be the deciding factor. Mortgage lenders routinely sell mortgage debt on the secondary market; the lender you choose today could very well turn around and sell your mortgage to another lender tomorrow. Customer service is however an important aspect of closing on your mortgage loan. It is important to remain in communication with your loan representative to ensure the interest rate guarantee you receive does not expire before your closing date. If you find a lender is unresponsive to your phone calls or emails you might consider using a different mortgage company.

II. Avoid Excessive Fees and Yield Spread Premium

Mortgage lenders often try and slip excessive or unnecessary junk fees past borrowers that don’t know any better. To avoid overpaying for your new mortgage it is important to do your homework and research lenders prior to applying. By comparing a variety of loan offers across many lenders you will be able to easily recognize junk fees. Yield Spread Premium is the markup your mortgage company or broker adds to your loan to collect a bonus from the wholesale lender. To learn how to spot Yield Spread Premium and avoid paying the markup, register for a free mortgage guidebook using the links below.

III. Choose a Lender With a Variety of Programs

Comparison shopping from a variety of lenders with a wide range of mortgage products will help you find a mortgage tailored for your financial situation. The more time you invest shopping for the most competitive lender, the more you will save. When you compare loan offers it is extremely important to compare all aspects of the offer, not just the interest rate. Homeowners that focus solely on mortgage interest rates often overpay for everything else from origination fees to closing costs.

You can learn more about shopping for the best mortgage and avoiding common homeowner mistakes by registering for a free mortgage guidebook.