Before Applying for a Mortgage

• Check your own credit report and score through the site AnnualCreditReport.com. You can receive your credit report for free once per year through each of the three credit agencies: Experian, Equifax and TransUnion. Additional reports, as well as your credit score, require payment.
  
  

Mortgage Preapproval Application

• Provide each lender you request a mortgage quote or preapproval from your copy of your credit report. Ask each lender to prequalify you based upon the credit report you provided.
  
  

Truth in Lending Statement

• Ask each lender for a Truth in Lending Statement, as well as a Good Faith Estimate reflecting the fees based upon your preapproval status. Both will outline the fees associated with the loan, as well as the APR (Annual Percentage Rate). The APR is the total cost of the mortgage, including both the interest rate as well as the associated fees of the loan itself. The loan with the lowest APR is the lowest cost mortgage.
  
  

Choose a Lender

• Allow only the lender with the lowest APR to check your credit report. This will lessen the impact on your credit score, as well as allow you to get your official preapproval letter. The lender will most likely not issue you an official letter of preapproval until it checks your credit score and report with its system.