Don't waste your time trying to get the absolute lowest rate in the market!

Instead, focus on getting a good rate with a company that you can TRUST on DELIVERING promised rates. There are just too many stories of consumers who were promised an incredibly low rate only to find out that rates/fees were different at closing. Getting the Lowest Rate is Meaningless if you Do Not Close escrow With THAT RATE! If price was the only consideration, then everyone would be driving Yugos!

Here is a list of things to do when shopping for a rate:

1. Get a good-faith estimate of closing costs in writing. When comparing lenders, pay close attention to the loan fees on the estimate. Other fees such as title charges and government recording-fees are independent of the loan, and so are irrelevant when comparing lenders. These are normally paid to companies other than the lenders. Compare the loan fees, points and the interest rate.
2. Find out what the APR on the loan is. Use this as a guideline to shop for loans. Unfortunately, APR is not well-defined, so different lenders may calculate the APR differently. You cannot depend solely on the APR.Check out this article, which explains APR in detail
3. Find out how long the rate is valid for. A company might quote you a really low rate on a 10-day lock. This means you have to close your loan within 10 days. Most lenders will not let you lock in a 10-day lock unless your loan is already approved. Always ask for at least a 30-day lock.
4. When you lock in your interest rate, get the rate, the points and the length of the lock in writing.
5. If you are locking in an adjustable loan, make sure you know the margin, the adjustment caps and the life cap. If you are unsure about these terms check out our reference desk.
6. If you do business with companies who publish rates on the Internet, monitor their rates over time. Some companies may have low rates one week and higher rates the following week. Unless you are locking your rate on application, it is a good idea to work with companies that have consistent pricing strategies.

Should you work with 2 lending sources?

Loan officers and mortgage brokers work hard to earn their money just like you do. They spend many hours trying to make your deal go through and deserve to be compensated for that effort. Nothing is more frustrating in a loan officer's life than to find out that he/she has been "double-apped" (a borrower has filed two applications with two different lenders). Working with two lenders can be like having two wives, hard and time-consuming. One lender might have a better rate on a given day and you decide to lock with them, and on the next day the other lender may have a better rate! You may also have additional costs such as duplicate credit report fees, appraisal fees, etc. Many lenders now have a $500 cancellation policy.

It is better to choose a broker that you trust and feel comfortable with. Working with multiple lenders will only raise costs for everyone since the lender that takes a loss will have to pass this on to other customers.