Preapproval and lenders

How to choose a mortgage lender: compare offers, not ads

Many buyers take the first lender they talk to. Comparing even two or three Loan Estimates can reveal meaningful differences in rate and fees on the same loan, and the paperwork to do it is lighter than most people think.

Reviewed November 2026 · Written for Buy Home Tips from the sources listed below

Mortgage prices are not posted like grocery prices. Two lenders can quote different rates and fees for the same borrower on the same day. The Loan Estimate, a standard three-page form, is the tool that makes comparison possible, and you can get one without committing to anything.

Example: lender charges on three Loan Estimates for the same loan. Illustrative section A totals for a comparison; your quotes will differ

What to request

Once you give a lender six pieces of information (your name, income, Social Security number, property address, estimated value and desired loan amount), it must send you a Loan Estimate within three business days. The CFPB notes that lenders cannot require more to issue the estimate, such as a purchase contract or income documents, though sharing more can make the estimate more accurate.

If you have not found a home yet, ask lenders how they handle estimates without an address. Many will provide a written quote, and you can request formal Loan Estimates once you have a contract.

Make the requests comparable

Ask every lender for the same thing: loan type, term, down payment, price and the same lock period. Request them within a day or two of each other, because rates change daily. The CFPB says multiple mortgage credit checks within 45 days count as a single inquiry for scoring, so keep your shopping inside that window.

The lines that matter

Page 1, Loan Terms: the interest rate, whether it can rise, and any prepayment penalty or balloon payment.
Page 2, section A, Origination Charges: what the lender itself charges, including points. This is where lenders differ most.
Page 2, sections B and C: services you cannot or can shop for. Compare, but remember that some are set by third parties.
Page 2, Calculating Cash to Close: what you will bring to closing.
Page 3, Comparisons: the APR and what you will have paid in five years.

Worked example: three estimates

Imani requests Loan Estimates from a credit union, an online lender and a local mortgage company for a $300,000, 30-year fixed loan with a 30-day lock.

The credit union quotes 6.5 percent with $1,295 in origination charges. The online lender quotes 6.375 percent with $2,850, including a fraction of a point. The mortgage company quotes 6.25 percent with $4,100, including points.

She expects to stay about seven years. Using the calculator on this page, she finds that the offers are close over that period, so she weighs service: the credit union has a local office and closes in 30 days; the online lender cannot confirm a closing date. She asks the credit union whether it can match a lower rate with points. It offers 6.375 percent for an extra $900, and she takes it.

Questions about service

Cost is not the only difference. Ask each lender:

Who will be my contact, and how do I reach them after hours?
How long are your files taking to close right now?
What is your rate lock policy, and what happens if closing is delayed?
Do you offer the loan program I need, such as FHA, VA, USDA or HomeReady?
Do you service your loans or sell the servicing?

Making the choice

Pick the lender that offers the best combination of total cost over your expected time with the loan and the confidence that it will close on time. Then tell that lender in writing that you intend to proceed. Let the others know you have chosen another lender, and keep their estimates in case your first choice falls through.

Mini calculator: two offers over the years you expect to keep the loan

An APR assumes you keep the loan for its full term. This compares two quotes over your own time horizon: upfront lender costs plus interest paid in that time.

Loan amount ($)

Loan term (years)

Years you expect to keep the loan

Offer A rate (%)

Offer A points and lender fees ($)

Offer B rate (%)

Offer B points and lender fees ($)

Enter your figures to see the result. Nothing you type leaves this page.

Compare offers with the same loan type, term and lock date. Section A of each Loan Estimate lists origination charges.

Lender shopping plan

Choose two to four lenders: a bank or credit union, a mortgage company, and a broker if you like.
Request Loan Estimates within a few days of each other for the same loan.
Keep all credit pulls within 45 days.
Compare rate, points, section A charges and cash to close.
Ask about the lock policy, timelines and who your contact will be.
Tell the lender you choose that you intend to proceed, in writing.

Questions buyers ask

How many mortgage lenders should I compare?

There is no required number, but getting Loan Estimates from at least two or three lenders lets you see differences in rate and fees for the same loan.

Does applying with several lenders hurt my credit?

The CFPB says multiple mortgage credit checks within a 45-day window count as a single inquiry for credit scoring, so compare lenders within that time.

What do I need to give a lender for a Loan Estimate?

Six pieces of information: your name, income, Social Security number, the property address, an estimate of the property's value and the loan amount you want. Lenders cannot require more to issue the Loan Estimate.

Should I use a mortgage broker or a lender?

Either can work. A broker shops several lenders for you; a direct lender makes the loan itself. Compare the Loan Estimates either way, since that is where costs appear.

Sources checked for this page

Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.