Make sure that you are working with a reputable mortgage broker. Check with the Better Business Bureau. If you know someone who has refinanced their mortgage recently find out who they used and if they liked them. There are lots of mortgage brokers out there. The ones that advertise on television and the radio may not be the best ones to work with. A good mortgage broker relies more on word of mouth and reference from people who refinanced their mortgage with them alread.
Know your credit. Don’t let them tell you your credit is bad, make sure you see it. Know what your score is. Go to freecreditreport.com or a similar place. The better your credit is the better mortage you will qualify for.
Know what the current mortgage rates are. Go to someplace like bankrate.com and see what the current mortgage rates are. Keep in mind that this will not necessarily be the mortgage rate you will get. It all depends on your credit, how much you owe on your house compared to the value of the house, and your personal income. There are other considerations, but these are the biggest ones that will affect your new mortgage.
After you have found a mortgage broker let them know exactly what you are wanting. You cannot, for the most part, control the mortgage rate you get, but you can make sure that you are getting a fixed rate. Do not let them talk you into an adjustable rate mortgage.
When you get to the closing there has to be an independent third party there from the title company. Many mortgage brokers will want to be there and in some cases there will be no representative from the title company at all. This is illegal, there has to be a representative from the title company to do the notary work on the mortgage paperwork right then. Also, make sure that the title company is not owned by the mortgage broker. You can ask that the mortgage broker not be at the closing. This will prevent them from trying to resell the new mortgage to you at the table. Everything should have been settled before you go to the closing table and there should be no surprises about the term of the mortgage then.
Finally make sure you understand all the important paper work. Make sure you know the mortgage rate and you know that it is the length of time you wanted and it is fixed for the entire length of the mortgage. Also make the title agent shows you exactly how much the mortgage broker is charging you. The amount paid by bank to the mortgage broker is the amount they are getting paid for making you take a higher mortgage rate. Know that you will never get the exact lowest mortgage rate available, but you should try to get it as low as possible.