How to pick a lender

Know your numbers: Before you start, find out your credit profile and credit score. Many borrowers are pushed into subprime loans when they could qualify for prime or near-prime loans.

Shop: Check The Plain Dealer's BusinessMonday section, where some local mortgage lenders list their rates, points and fees, or check a source like bankrate.com. Select a few lenders with the lowest costs to contact. Also, ask family, friends and trusted advisers whom they have dealt with in the past.

Inspect: Check to see if the lender or broker has proper credentials. Mortgage brokers and their loan officers must be licensed by the Department of Commerce, Division of Financial Institutions. Go to com.state.oh.us/dfi to find out if they are licensed and if any enforcement actions have been taken against them. The Better Business Bureau (bbb.org) also is worth contacting.

Ask: If dealing with brokers, ask how they will be compensated for matching you with a lender. Mortgage brokers can do a lot of the legwork for you, but they may have financial incentives to push you toward a higher-cost loan.

Verify: Get an independent assessment of any loan agreement before you sign it to make sure it's in your best interests. In others words, check with a lawyer. Do not allow yourself to be hurried.