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Find a trustworthy mortgage broker by asking your Realtor, friends and relatives for referrals.

#7: Pick the right mortgage pro for your situation.

As that popular rap song goes: "More money, more problems." Doesn't it seem like the more money is involved in an industry, the more scam artists and charlatans work in that field? That's certainly true with the mortgage industry, but for every fraudulent financier, there are a dozen honest mortgage mavens who can hook you up with the funds you need to finance your home. Here are some simple steps you can take to make sure your mortgage specialist is both honest and the right pro for the job.

In referrals we trust. Finding a mortgage broker who is worthy of your trust is an important task, but it doesn't have to be a difficult one. The best way? Ask your friends and relatives -- someone you know must have a mortgage rep they swear by. And one of the best sources of mortgage referrals is a frequently overlooked one -- your Realtor. Even if you bought your home years ago and are just wanting to refi, your Realtor stays in the know on which reputable local loan reps have access to the loan options you need.

In the mortgage realm, because there are so many different types of professionals, it's sometimes tough to know what sort of referral you even need. There are mortgage brokers who shop a bunch of different lenders, mortgage representatives who are employed by (and thus only work with) a single lender, and all sorts of service providers in the business of modifying loans. Let your mortgage project determine the type of pro you seek out.

Straight from the lender's mouth. If you're trying to stimulate your household economy by taking advantage of the stimulus plan, go straight to your lender. If you qualify for one of the stimulus modification or refinancing options, they'll make it happen. For a quick-and-dirty Cosmo-style quiz to see if you're eligible, visit www.MakingHomeAffordable.gov. Even if you're not looking for stimulus help, but you would like to explore your refinancing or loan modification options, you should always check in with your current mortgage holder and your personal bank or credit union to see if they can waive fees, get it done faster or offer you some other preference for being an existing customer. But be sure to compare their offer against your mortgage broker's to make sure you're getting the best deal. And remember, these mortgage reps work for the bank, not for you, so their goal is to sell you what their bank offers, which may or may not be the most appropriate loan for you.

Broker is better. In almost every scenario, it's a good idea to get a mortgage quote from a reputable mortgage broker, even if you're also going to get one direct from your lender. Brokers know how to work the system to get you the best deal, and they generally have access to tons of lenders, so they do the hard work of shopping for you. But make sure you use a broker you find by referral. They want to earn your repeat business, so they'll do everything possible to get you the lowest rate and best terms on the right loan for you.

NEXT: #6: Protect yourself when you bypass the bank >>

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