How to Compare Lenders and Loan Estimates

Create one comparison scenario

Ask each lender to prepare a Loan Estimate for the same borrower, property, loan type, price, down payment and expected closing date. CFPB says a Loan Estimate contains important details about a requested mortgage and recommends requesting multiple estimates. A rate quoted in isolation cannot show the relationship between points, lender credits, estimated payment and upfront cash.

• Check loan term, purpose, product and loan type on page one.
• Confirm loan amount plus down payment equals the expected purchase price.
• Note whether the rate is locked and the lock expiration.

Read the cost sections as a whole

Compare total origination charges, then review services the borrower cannot shop for and services the borrower can shop for. CFPB notes that the lender should provide a provider list for shoppable services. Review insurance and property-tax estimates separately because the buyer or local authority may control those inputs. If one estimate includes lender credits, ask how the credit affects the rate and total cost; a credit can offset closing costs while changing another loan term.

• Compare APR and total-interest information as additional context, not a stand-alone verdict.
• Ask about every fee you do not recognize.
• Do not mix estimates generated for different loan products.

Choose only after questions are answered

Keep the estimates with the lender responses and revisit them before closing. CFPB says the final Closing Disclosure should be checked against the most recent Loan Estimate. This is not a lender recommendation. A licensed lender can explain product availability and a housing counselor can help a consumer prepare questions.