Before you call any mortgage company, you should answer the following questions:
-  What do you want to accomplish by refinancing?  Is your goal simply to save money by lowering your payment on your existing mortgage?  Or do you want to change your financial picture by combining your first and second mortgages into one mortgage, consolidating credit card debt, liquidating your equity for investment purposes, or getting cash-out to improve your home?
-  Will you consider an Adjustable Rate Mortgage or other mortgage type in order to better accomplish your goal, or are you simply more comfortable with a fixed rate?
-  How much do you owe on your current mortgage?
-  Do you escrow for your taxes and insurance with your current monthly mortgage payment?  If so, you should identify the breakdown of your monthly payment into the principal and interest payment, and the amount collected for escrow.
-  How much is your house currently worth?  It is important to have an idea of the current value of your home so that the Loan Officer can place you into the best program possible.  In doing so, you will ensure that you get an honest and appropriate estimate of how the new loan will meet your goal and what to expect as a new monthly payment.
- You should also have a detailed, fully completed 1003 loan application to give your Loan Officer.  If you haven’t had your credit pulled, have him/her pull all 3 scores or at the very least 1 score for now.  It’s just like getting pre-approved for your loan when you’re buying.  You can only expect accurate quotes for rate and fees only if you’ve given this completed application and your credit report.  It would also be irresponsible of the Loan Officer to quote you without having this information.  Once you have your credit report and know your scores, you can use this information with any other mortgage companies you’d like to get a quote from.  This way you don’t have your credit pulled multiple times.

Call the mortgage company and provide the loan officer with the information you have compiled, listen to proposals, and evaluate how well your goal is met.  Make sure you request a copy of a Good Faith Estimate, which will show the proposed interest rate, closing costs, and monthly payment breakdown.  Have the Loan Officer explain which costs are to be rolled into the new loan and which are to be paid prior to closing (out-of-pocket). 

Be wary of companies that require more than $350 for appraisal and credit report to be paid up front.  Once you have received Good Faith Estimates from two or three mortgage companies, it is time to make a decision.  You should be prepared to review the estimates and then lock in all in one day because interest rates do change daily.  Expect to pay for your appraisal and credit report out of pocket, and upfront BEFORE your Loan Officer will lock your rate in.  If one company has lower rates and closing costs but you call to lock the day after you receive your quote, that company can say rates have increased, putting you back at square one.

If the two mortgage companies are comparable in rates and costs, analyze your discussion with the person you spoke with from both companies.  Who were you most comfortable with?  A good loan officer makes all the difference in a smooth refinance transaction.  Ask how quickly they can get the Good Faith Estimate to you and hold them to it.  Also ask for references so you can see a history of this loan officer doing a great job for his/her clients.  You are an important customer, and a good Loan Officer will make sure you are their top priority.  Good luck and happy hunting.