Attn: Mortgage shoppers
Here are 10 tips to keep in mind if you want to be a savvy borrower

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Mortgage rates are declining around the nation, giving homebuyers a chance to lock in a favorable rate and infecting homeowners with a new strain of refinancing fever.

Here, from Bankrate.com, are 10 things every mortgage shopper should know:

1. Errors are common in credit reports. Mortgage shoppers should obtain a copy of their own and their spouse’s reports six months before looking for a mortgage.

2. It pays to shop around and be ruthless in comparing rates.

3. Lenders must provide a ''good faith estimate'' of closing costs (e.g., points, appraisal fee, title insurance, recording fees, transfer taxes, etc.) before the application process gets under way.

4. Ask the lender what fees aren’t shown on the ''good faith estimate,'' and ask for those to be waived in writing.

5. Beware of ''packing,'' which happens when the lender charges the borrower for unneeded services (e.g., credit insurance) as part of the mortgage deal.

6. A down payment of less than 20 percent of the home’s price usually means the borrower must pay for private mortgage insurance (PMI).

7. Ask the lender to waive such direct-to-the-lender fees as ''document preparation charges.'' The borrower shouldn’t have to pay extra for standard services.

8. Borrowers should understand that a total debt-to-equity ratio less than 36 percent normally is required to obtain a fair interest rate.

9. Bankrate.com's ''Should you pay points on your mortgage'' calculator can help borrowers compute how long it would take to recoup points paid on a mortgage. Paying higher points makes less sense if the borrower plans to own the home only for a couple of years.

10. Ask about the lender’s rate-lock procedures. If rates are rising, the borrower should lock in a rate as soon as possible. Conversely, if rates are falling, the borrower probably should delay locking the rate for as long as possible.