Everybody seems to have a “guy” in the mortgage loan industry. When I went out to buy my first home, I was referred by a number of people to their “guy.” These were trusted friends of mine that were honestly trying to help me. But in doing a little more research, I found that most of my friends recommend their “guy” because that was the same person that was recommended to them when they bought their first home!

Fact is, you can’t trust one source.

Home loans are available through a number of different types of lenders- credit unions, commercial banks, mortgage companies, etc. This list could go on. As you speak with different lenders, you’ll find that they tend to quote you at different prices; it pays to shop around.

Another option is to obtain your loan through what’s called a mortgage broker. A broker’s job is to go out amongst all the different lenders they have access to and find you a deal. Their job is to arrange the transaction, NOT to lend you the money. Or, in other words, they’ll find you a lender that will suite what you’re looking for.

Remember, brokers are in this to make money too, so don’t trust just one! You need to make sure you do your homework. Technically, they are not obligated to find you the best deal! That said, shop around for a number of brokers.

It’s important to know whether you’re working directly through a lender or a broker. Mortgage brokers tend to get paid on either “points” paid when the deal closes or on an add-on to your interest rate. Depending on the situation, it may be both! So it’s important that you know if you are working with a broker or not. And it’s not always so clear; many advertisements don’t even use the word “broker,” so it may be wise to simply ask.

Again, don’t just trust that because somebody has a “guy” that you’ll be getting the best deal; shop around. Find the best deal for you. It’ll end up saving you thousands!

Trever Shipp, the author, works as an online business consultant, student, husband, and business owner. Follow his personal finance blog and see how he and his family take finances by the horns and steer them to success.