Even if your credit score is favorable and you know what type of loan you want, you still have to shop around. Not all lenders offer the same interest rates or terms.

How to choose a lender once you know what type of loan makes sense:

• Compare rates. With your credit score in hand, compare the rates that similar lenders offer. But also check the rates offered by different types of lenders, such as your brokerage, a credit union (if you belong to one) and even your credit card issuers.

• Call your bank. If you already have taken out a mortgage or a loan, ask your current lender about its offerings. You may receive a more favorable rate from your current lender if you have a solid repayment history.

• Know the terms. Once you know the rate you’ll be charged by different lenders, compare their terms. Some have requirements that others do not. For example, some may offer a more favorable introductory rate while others will allow you to make two or more late payments without charging a penalty.

• Check the penalties. Some lenders charge higher fees than others for missed payments or early repayment.

• Verify the service. From time to time, you may have questions about your loan. Confirm that the lender’s customer service is easy to reach. Also, if you prefer that the lender automatically deduct payment each month directly from your account, ask if that service is available.

• Review the refinancing process. If national interest rates drop significantly after you borrow, you may want to refinance your loan to get that better rate. Or you may want to refinance a variable rate loan to one with a fixed rate or a different loan period (from 30 years to 15 years, for example). Ask about the lender’s refinancing process. Some provide existing borrowers with a streamlined turnaround.