I just want to borrow money, what do you mean by a "good product"?

Most people think that when it comes to shopping for a mortgage, the "product" being bought is money.  In reality, the money is a given.  The product you are actually purchasing is an interest rate and sometimes includes terms of the loan, as in the case of Adjustable Rate loans and special situations. 

You might be thinking, "Isn't the interest rate the price of the money?"  Yes, the interest rate is a part of the overall cost of the money.  But your interest rate can be directly related to the upfront costs.  That is, the total of your upfront costs such as, points, origination fees, and other lender fees can all play a part in determining your interest rate.   You will be borrowing the same amount of money regardless of the lender you choose.  Therefore, the product you are buying is the interest rate (and sometimes the terms).  But that is not all that you are buying.

In addition to your interest rate, another element of the product you are buying is service.  Almost anyone who has been through the mortgage application and closing process will tell you that, all things considered, this part is of equal importance in many respects, and maybe greater if there is little difference in the interest rate.  When you apply for a mortgage loan, you are entering into a relationship with someone from that day until the day you close, usually 30-45 days.  You will be sharing personal information and relying on the person or entity to process plethora of paperwork and manage a multitude of details.  Errors, oversights, or carelessness can cause you a great deal of stress and discomfort, not to mention delay or even cancellation of your closing.

When choosing a mortgage broker or lender, you want to be confident that your lender or broker is experienced and able to make the process easy and stress free.  You want a good idea of the costs involved.  You want to be sure that the closing will take place according to your plan.  Of course, you do not want to pay a higher rate than you have to, and then continue to do so for years to come.  And, you want to deal with someone who is as concerned as you are about all these details. Like any other product, sometimes quality and sleeping better at night can justify paying a little more if necessary.