Here are some steps to follow when determining which lender is right for you:

* Compare fees as well as interest rates. Comparing loans based on their annual percentage rate (APR) is a good place to start, but it's not enough. In the case of a mortgage, to get a more accurate breakdown of costs, ask the various lenders for a formal good faith estimate of all the fees you'll incur with your loan -- this is a standard form lenders must provide you that is more detailed than the overview you'll get with an offer. Also, ask about potential charges that may not appear on that list, such as prepayment penalties. You're not just comparing numbers here: determine how honest and upfront you feel the lender is being, and don't use a lender that you feel is evading your questions.

* Consider your individual circumstances. Bigger lenders aren't necessarily better than smaller ones, especially if you have unusual circumstances. For example, some lenders specialize in loans for people with poor credit, while others may have more options for those with small down payments. If you have special borrowing needs, look for a lender with experience working with people in similar situations.

* Obtain All Important Cost Information: Be sure to get information about mortgages from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate is not enough. Ask for information about the same loan amount, loan term, and type of loan so that you can compare the information.

A word of caution: When you are loan shopping, not all lenders you talk to will be quoting you a real rate. Some lenders will simply tell you anything to get you to fill out an application and start up a dialogue. Likewise, some advertisements on television or in newspapers have strings attached or fine print. As always, if something sounds too good to be true, it probably is. When you do sit down with a lender, pay attention to the features of each type of loan, including points, interest rate, or other provisions. Once you reach a rate for the type of loan you want, lock it in.