What are some of the most common mistakes made by borrowers when shopping for mortgage rates?  

• Selecting the lender with the lowest rate.    Getting the best rate is not always the best deal.  You don't have to look hard to find a lender that will "beat all other offers".   Unfortunately, that lender neither has the capacity or intention of delivering those deals.   Their objective is to rope you in and move the process along until it is too late for you to back out.   When choosing a lender, you should consider someone who will take the time to help you determine what product/rate/cost combination is best for your situation.
• Comparing lenders shopped yesterday, today and then tomorrow.  Because of market volatility, rates obtained on different days are not comparable.  Rates can even change as often as 3-4 times per day.  Unless you shop all sources on the same date, you are wasting your time. 
• Not providing all the information about your financing needs upfront.   Rates will vary depending upon certain characteristics that lenders believe will affect their risk and costs.   The size of your loan, the type of loan, your credit rating, the projected (equity) loan to value, type of home and the ability to document your income are just a few factors that affect your rate.   Unless informed to the contrary, lenders are quoting prices assuming a set of standard specifications that generates the lowest rates.
• Relying on APR quotes to determine the best deal.  The APR "annual percentage rate" is supposed to be a shopping tool, but unfortunately it has serious flaws.   Numerous inconsistencies between lenders in what is and what is not included in APR exists.  Fees covering such items as credit reports, appraisals, document preparation and pest inspections are excluded by most lenders but not by all.   APR also varies depending on the size of the loan and whether it is a fixed, variable or balloon term.  Additionally, APR is calculated over the life of the loan even though over 90% of all borrowers sell or refinance their home before their term matures.   As a rule of thumb, use APR as a shopping tool only if you believe you will be in your home more than 10 years and shop by rate and costs if the time horizon is lower. In either case, make sure to compare the actual costs.
• Not asking for a GFE "Good Faith Estimate" when shopping.   If you formally apply for credit, RESPA requires a GFE to be provided to you within 3 business days of application.   If you are shopping various lenders, ask for this document upfront to give you a clear picture of the lenders closing costs before you do turn in your application.  Remember: Any extra lender charges at closing are a violation of the law.
• Not asking about pre-payment options.  Some lenders allow homeowners to pay down their principal early, bit by bit.   It is a great way to reduce your interest payment over time.    Other lenders impose penalties on early payments.  After all, lenders make money on interest you pay - income that is eliminated when you prepay.    Make sure to clarify whether or not the rate for the loan program quoted has any pre-payment penalties.
• Getting pre-qualified and not pre-approved.    Yes, there is a difference.   A pre-qualification is an approval based upon written or verbal information provided to a lender with no verification.   A pre-approval goes the next step and verifies your credit, income and assets.  The seller will be more accepting of your offer if it is accompanied by a pre-approval letter.

We want you to know and understand that Affinity Mortgage Services is truly giving you the best deal.   Our goal is to provide every customer with the best rates and lowest closing costs every time.  We want to earn your respect and business.