It goes without saying that the basic idea is to get the best rate and points with the best lending company that you can. This is where I can help a lot with access to many lenders who can take your information and give you an answer by the next day. Some lenders can get an answer in a matter of hours. I even have some loan offers who will come to your house with a laptop computer and let you know right then. What can be simpler?

What a lender can do to help get you started is to get you pre-approved for a specified amount. Pre-approval for a loan is a formalized process that can facilitate the loan application process. Pre-approval is a lender commitment provide you with a specific loan amount. A pre-approval is not not tied to a specific property. The lender will want to know your current financial status and ask you to provide income and debt-related documentation.

Although you are not required to get pre-approval, it makes your offer to buy much stronger in the eyes of the seller. Since the lender has pre-approved you for a specified mortgage amount, the seller can be assured that you are serious about your offer and that the contract is less likely to fall through based on financing. However, keep in mind that what you are pre-approved for may not be the amount you are comfortable spending.

Generally, the person helping you may be a lending broker who works as a front-end to lenders. The lending broker will help you get your loan package together and then "shop" it out to the actual lenders. A lender's underwriter will then approve your loan with terms you can accept or reject. Remember, you can always negotiate your loan but best to have a strong position to negotiate. It's a good idea to understand that the lending broker gets paid from the lender when you go to settlement. So, it's in the broker's best interest to help you get the right loan.