As we'll see in a moment, many special programs are available, particularly for first-time buyers. But right now let's look at where you should go to shop for the best deal. Start with a mortgage broker One increasingly popular way to shop for a mortgage is to call a mortgage broker. In years past, mortgage brokers were used primarily by people who had such bad credit histories that they usually could not get financing any other way. Today mortgage brokers have become professional mortgage finders and facilitators.
Mortgage brokers are like independent insurance agents.
They typically work with several large mortgage companies to get you the best deal. Mortgage brokers thus serve as lender sales representatives and loan officers. They walk you through the application and handle all the paperwork. In return, the lender pays the broker a commission on your loan. Commissions range from about half a point to two points, but the cost is paid by the lender instead of coming out of your pocket.