First thing you should do is order a current copy of your credit report, with scores, from the 3 credit reporting bureaus before you start shopping mortgage rates.
Almost every single, albeit well meaning shopper, gives some incorrect information when they first start shopping for mortgage rates.
P.O. Box 740241
Atlanta, GA 30374
P.O. Box 2002
Allen, TX 75013
P.O. Box 2000
Chester, PA 19022-2000
Each time your credit is checked the credit companies may reduce your score a little. If all credit checks are done within 30-45 days for the same reason, (home loan, car loan, etc..) you should avoid any reduction in your cedit score.
Once you've decided on the mortgage company and loan officer, and only then, go ahead and let them run their own copy of your credit report.
Most people call 3-5 mortgage brokers when shopping for rates and say I have A+ credit, what's your interest rate for today.
Almost every borrower is not going to hear an interest rate for their particular situation. The interest rate they will quote you is the lowest rate possible for a borrower with perfect credit, low debt ratios, good job history and 20% or more down payment.
Of course you're also going to run into the loan officer whose rate is far lower than everyone else's. Other loan officers are quoting 6.0% and one particular loan officer says he has the connections to get you 5.25% (for the same fees/costs).
Heck "NO", you run from this loan officer/mortgage company as fast as you humanly can, we're not kidding around on this one "RUN".
There are many situations in life where the good old phrase "If it sounds to good to be true, then it is" fits. This is definitely one of those times.
There is no secret lender this loan officer has (that no one else seems to know about) with rates three quarters of a percentage point below everyone else's.
It's a teaser rate to get you in the door, period! Once there, they will undoubtedly inform you that "your situation" doesn't warrant that rate, so of course your rate will have to be higher than originally quoted. Most of the time you will end up paying much more then if you had gone to one of the loan officers who gave you an honest upfront quote.
Borrowers should shop a minimum of 5 brokers, disregarding the lowest and the highest interest rates of the 5. Call back the 3 remaining loan officers.
Now you can give more in-depth information and try to decide which one you believe will work the hardest to get the right loan for you.