After your home transaction is complete, you will own two things.the home itself and the mortgage.  Over the lifetime of the loan, you may end up paying thousands of dollars extra just for not doing a little investigation.  Selecting your loan officer is every bit as important as selecting your real estate agent. 

Often, you will start with either the agent or the broker.  One will refer you to the other.  For example, you may have known the real estate agent you want to work with for years.  He or she may refer you to a broker they know and trust.  The inverse could be true.  The team approach is a good one, as long as you are certain your team has your best interest at heart.

There are two different types of lenders, and many areas of expertise.  In general, there are bankers and brokers.  Bankers represent their own products only.  They have their own guidelines.  If you fit them, they may have a good loan for you.  Brokers are more flexible.  They probably can offer you the same programs from the same bank as a single banker, plus other programs from other lenders.  

Shopping for a loan officer can be difficult.  You want to know what they can do for you.  They need to know your credit history.   It's best not to have your credit pulled 10 times.  The solution is to go to www.equifax.com and have your own 3 bureau credit report drawn.  It will cost you about $25.  You can fax or email this to a broker who sounds like they can help you, and get a ballpark quotation.  Ask for a Good Faith Estimate from the broker you choose to do your loan.  It may not be binding, but it will give you some idea of what they are charging.  Keep in mind they are not obligated to give you what they promise, even if it is in writing.  

Some loan officers do only good credit loans.  Others specialize in challenged credit borrowers.  Other specialties are jumbo loans, FHA, VA, low documentation or no documentation loans, rural properties, duplexes and Fourplexes.the list goes on.  Make certain your loan officer has resources and experience to suit your particular need. 

Mortgage brokers make their money one of two ways.  One is origination points.  This is the disclosed fee they charge you for their services, typically 1% for outstanding credit customers, as much as 2% for credit challenged buyers.  The second way brokers make money is Yield Spread Premium.  If the lending bank is offering your loan to your broker at 6% and your mortgage broker sells you the loan at 6.25%, the lending bank will pay your broker extra.  This is both legal and ethical.  It is the customers job to shop for the best loan; that means the best rate and best terms.  

Ultimately, after you have shopped you loan and interviewed lenders, your own instincts are your best indicator of who you should work with.  You need to be comfortable with and have confidence in your lender.