Correspondent lenders may be a good choice between selecting a traditional mortgage lender or a broker, which will be discussed in the next chapter. Correspondent lenders make the lending decision and fund the loan with their own money or credit line. They underwrite the loan as well. Because they do all of this in-house, they tend to offer slightly more competitive rates, sometimes a quarter- to a half-point less than the competition based on your credit history. They're a little tough to find and tend to be within smaller financial institutions. Ask around, check the yellow pages, and Google “corresponding lending departments” in your area.

Even if you've never taken out a mortgage loan before, you're more likely to get a good deal if you study the operations of lending institutions available to you and what their specific competition is. Call on every resource you have available to you: bankers you trust, real estate brokers, and financial planners or tax accountants who may know reliable lenders in your community. Above all, pay attention to the news to get the latest data about rates and the health of various institutions you'd go to for a loan.

Too many new homebuyers walk into a bank or other lender with hat in hand. Housing prices are high these days, and the sheer size of debt one needs to take on is daunting, but always know that unless your credit is an absolute disaster, you deserve a loan as much as anyone else. The lender needs to make its money, too. If a lender treats you as if you don't deserve to apply, just leave — and tell your friends what happened.