Compare written Loan Estimates from a mix of lenders (banks, credit unions, online lenders, brokers). Focus on APR, itemized fees, rate-lock terms, and servicing. Use standardized Loan Estimate and Closing Disclosure forms to compare total cost and choose the lender that offers the best combination of price and service.

Why compare lenders?

Comparing mortgage lenders remains one of the most effective ways to improve your terms and protect your wallet. Different lenders price interest rates, fees, and programs differently. Shopping multiple lenders helps you spot the best mix of rate, fees, and service for your situation - not just the lowest headline rate.

What to compare (beyond the interest rate)

• APR and fees: Look at the APR and the fee breakdown on the Loan Estimate, not just the nominal interest rate. APR reflects many costs rolled into an annualized figure.

• Loan Estimate and Closing Disclosure: Federal rules require lenders to provide a Loan Estimate within three business days of your application and a Closing Disclosure before closing. Use these forms to compare costs directly.

• Points and origination charges: Upfront points lower rate but increase closing costs. Make sure you compare total cost over the ownership period you expect.

• Rate-lock and float-down options: Check how long a lender will lock your rate and whether they offer a float-down if rates fall.

• Loan servicing and customer support: Who will service the loan after closing? Responsiveness, online tools, and complaint history matter for long-term experience.

Who to include in your comparison

Compare offers from a mix of sources: national banks, local banks, credit unions, online lenders, and mortgage brokers. Each can have different pricing or loan products. Mortgage brokers can aggregate multiple lender quotes; credit unions may offer competitive rates and lower fees for members. Don't assume one channel is always cheapest - shop a few options.

How to shop effectively

Request written Loan Estimates from several lenders for the same loan type and term. Compare APRs, itemized fees, and whether costs are lender-specific or third-party. Ask about rate locks, required documentation, and typical turn-around times. Communicate that you are getting multiple quotes; lenders often match terms if they know there is competition.

The payoff

Small differences in rate or fees can add up over a multi-year mortgage. By comparing lenders, you increase your chances of finding a better overall deal and discovering lenders who provide clear communication and reliable servicing. Take the time to compare until you feel confident about the price and the people you'll work with.