Here is a series of considerations for determining what mortgage lender to use.
1) Check references
2) Look for testimonials.
3) Get expert advice
4) Do not pay application fees.
5) Do not borrow more than you can pay back.
6) Find out how long the loan officer has been in business. Have they furthered their education by taking fraud prevention courses?
7) Deal with someone local to the area you are buying in. It is easier to resolve problems with someone you can meet face-to-face vs. talking with someone in another state.
8) Make sure that they are telling you how much they are making on the loan. Make sure they discuss how they are paid. If they are a broker they will have to disclose closing costs and yield spread premium.
9) Find out if they are licensed. Mortgage brokers and loan officers that work for mortgage brokers require a license. Mortgage bankers that work for banks or credit unions do not require a license.
10) Find out what percentage of clients are from repeat/referral business. This will give you a good idea on who you are dealing with. See if they will give you the name and number of a closed client.