Make sure you record the date of your rate quote. Try to call lenders on the same day, so that you have an accurate comparison. If PMI is required, ask how much it will cost. Find out how much is due at closing and the amount included as monthly premiums. Also ask how long PMI will be required.
Some penalties are in effect only for the early years of the loan.
Laws in many states prohibit or limit mortgage prepayment penalties. Peak business periods, particularly when rates are dropping, can affect a lender's response time. Ask each lending institution for its estimate and see which can promise very short approval times. This is called the fully indexed rate. A teaser rate may sound like a bargain today, but it may turn out to cost you more in the long run.