1. YOUR CREDIT SCORES - Your credit history is collected by three different credit bureaus. When you make an application for a home loan, the lender will get a credit score from each of the three credit bureaus. Most lenders use the median (numeric middle of the 3) as the score with which they will underwrite your loan. The higher your credit score, the better your credit grade. Most of the mortgage products on the market have a higher rate for lower scores and a lower rate for higher scores.

2. YOUR LOAN-TO-VALUE (LTV) - or "are you putting any money into the transaction for down payment?" Most traditional loan products that offer the most aggressive rates require at least 5% down. When you get a mortgage that requires no down payment, your rate will be about .25% to .375% higher.

3. YOUR DEBT-TO-INCOME Ratio (DTI) - Traditional underwriting guidelines require very specific documentation to verify your income. The income must be enough so that your DTI is maximum 50% of your gross monthly income. In other words, no more than 50% of your monthly liabilities can go to your new housing payment and all of your other monthly debts. However, some borrowers don't meet this guideline for various reasons. They may choose a mortgage that requires little to no income and/or asset documentation, which can add .25% to .50% more to the interest rate you get.

4. THE ESCROW ACCOUNT - Traditional mortgages require that the lender set-up and maintain an escrow account to save and pay for your home owner's insurance and property taxes. However, some borrowers would rather manage those funds themselves. This might add slightly to the cost of the loan.

5. HOW SOON YOU WILL BE CLOSING - Interest rates are usually locked for 15, 30, or 60 days. The longer your lock-in period, the higher the interest rate will be.

6. WHO IS PAYING YOUR CLOSING COSTS - Many borrowers have a limited amount of funds available to use in the purchase of their new home. What many do not consider is that the closing costs have to be paid in addition to the down payment. There are three options available to pay closing costs:

1. You can pay them yourself out of pocket. This is the lower rate option.
2. You can negotiate the seller to pay part or all of them for you. You will still get the lowest rate but the cost of the house may go up.
3. Your lender can pay them for you and build these costs into a higher interest rate.

7. THE TYPE OF PROGRAM YOU CHOOSE - The longer the term, the higher the rate (15 year, 30 year, 40 year, etc.). Fixed rates are higher rates than Adjustable Rate Mortgages (ARMs). The longer the ARM fixed period, the higher the rate (3/1 ARM, 5/1 ARM, 7/1 ARM, etc.). If you add an interest only option, your rate will be higher. There are a number of other options that could add to the interest rate.

8. THE SIZE OF YOUR LOAN - The rates change depending on the size of your loan. The best rates available are for loans between $90,000 and $417,000. Loans less that $90,000 or greater than $417,000 have a higher interest rate because of the size of the loan.

9. THE TYPE OF PROPERTY - Rates may vary depending on whether you intend to live in your house (Owner Occupied) or if you plan to hold the home as a rental (Investment Property)