Look at the loan programs and the interest rates offered by several different lenders. If you find a lender that offers a low percentage rate when all the others charge more, you will save some interest over the life of a 30-year term.

Compare different loans, loan types, and lending programs. Work with a mortgage broker who arranges loans from many different institutions. Choosing a mortgage can take weeks if you contact several lenders, but saving money is worth the time and effort.

Be sure to compare loans thoroughly:

• Compare different lenders or mortgage brokers. One of them is bound to offer the loan that's best for you.

• It is not all about interest rates. Getting a low interest rate is important, but it won't be beneficial if you have to pay various up-front points and fees.

• Understand how points and rates work. A point is prepaid interest, and each point you pay equals one percent of your loan amount. If you get a $100,000 loan and pay 3 points, that's $3,000 just in points. Paying more points may yield a lower interest rate over the loan term.

• How long will you keep the loan. If you're going to move to another house in a few years, consider an adjustable-rate mortgage since you may be able to sell the house before the rate increases. If you plan to stay longer than a few years, a fixed-rate mortgage may be an attractive option because your interest rate remains the same for the term of the loan.

When you submit your loan application, either online or in person, your lender evaluates the information on your application, the results of your credit report, the information about the property you want to buy, and your down payment to estimate your ability to repay the loan.

If you have already obtained qualification for a mortgage, the lender may be able to approve the application and complete the loan within a couple of weeks.

To improve your chances of loan approval:

• Complete the loan application. The lender needs all this information to determine your ability to repay the loan.

• Respond promptly. Don't delay in responding to the lender's requests for additional documentation. Obtain the documents yourself and deliver them by hand if necessary.

• Don't go on a spending spree. Before the sale is scheduled to close, the lender may check your credit report to verify that your credit card and bank blances still qualify for the loan.

• Make sure the appraisal is done properly. The lender will order an appraisal of the home to determine the value of the property. If the appraisal is low, you may request that a second appraisal be done.

To find the best deal, you may have to visit more than one mortgage broker or bank. You will need to file an application, then wait for loan approval. It is a good idea to obtain loan approval and qualification, before beginning the search for a new home.

To streamline the process and improve your chances:

• Order a copy of your credit report. The mortgage broker will also order a copy, but you should see it first. This will give you a chance to clear any credit problems before you submit the loan application.

• Organize your recent tax returns and financial documents. The lender will need your financial information to determine how much you can borrow. If you don't have all the paperwork, you can get copies by contacting your tax-preparer, and any other people who deal with your personal finances.

Qualify for a loan before you start shopping for a home.

If you take the time to get qualified prior to your search:

• You will know how much you can borrow, so you don't waste your time looking at properties you can't afford.

• You will have an edge when you make an offer, because the seller knows you're qualified to get a loan and close the deal.

• You will save time when you file your loan application, because you've already assembled the required paperwork.

• Perhaps you should contact at least three lenders. They will qualify you based on their current rates and loan programs. Be aware that lenders may persuade you to choose a loan immediately.

• Perhaps you should talk to at least two mortgage brokers. They will qualify you after reviewing the loan plans offered by all the lenders. You may have to pay a fee and may be persuaded to make an immediate decision.