Ask each lender for a Loan Estimate using the same loan scenario. If the amount, loan type, down payment, points, or rate-lock period differs, you may be comparing different offers.
Start with a consistent scenario
Share the same property and loan details with each lender. Check that every estimate uses the same loan type, term, amount, down payment, and assumptions. Since rates can change daily, note each estimate’s date and whether the rate is locked.
Compare more than the interest rate
- Rate and APR: Review both. The annual percentage rate incorporates certain loan costs, while the interest rate determines interest charges under the loan terms.
- Points and lender credits: Find out whether you pay upfront to obtain a rate or receive credits that affect other costs.
- Monthly payment: Compare principal and interest, then account separately for items such as taxes, homeowners insurance, mortgage insurance, and any association dues.
- Cash to close and lender costs: Review the estimate’s closing cost sections and prepaid items, not just a single total.
- Loan features and timing: Confirm fixed or adjustable terms, any special features, and whether the lender expects to meet your closing schedule.
With an adjustable-rate mortgage, ask how the payment could change under the loan terms. The CFPB comparison tool assumes a constant rate when it calculates an ARM’s five-year cost, though the actual rate and payment may change.
Use the estimates to ask better questions
If an offer stands out, ask the lender why. Request a revised estimate using the same assumptions as the others, and ask which costs the lender controls, how long the quote is available, and what could change the terms.
The CFPB guide to requesting and reviewing Loan Estimates recommends comparing offers on the same basis. Its comparison guide covers loan amount, rate, payment, and costs. The estimate describes proposed terms. Review the final documents and ask the lender about anything you do not understand.
This independent informational site is not a loan offer, rate quote, or commitment to lend. Terms, eligibility, pricing, and availability depend on the borrower, property, loan details, and lender. Confirm current information directly with lenders and review official disclosures.
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