Mortgage banks and brokers have different strengths, and going with the one that offers the lowest rate is not always the best choice.  Large banks may have experience with a wider range of lending situations, while smaller brokers may have more knowledge of local conditions and be able to move more quickly.

When shopping for a lender:

*Get referrals from friends or from local real estate agents you trust.

*Interview several candidates - a home is a major purchase and deserves careful planning.

*If there's anything unusual about your situation, ask lenders if they have relevant experience.

*Understand that banks must be more stringent about documentation than in the past, but be prepared to seek a new lender if the process drags on unreasonably.