Make the comparison fair
Ask lenders for Loan Estimates based on comparable loan amounts, terms, property information, and rate-lock assumptions. An advertised rate alone does not describe the full cost.
Review the whole offer
- Loan type, term, and whether the interest rate or payment can change.
- Principal and interest, mortgage insurance, and estimated escrow.
- Origination charges, discount points, lender credits, and third-party costs.
- Cash to close and whether the rate is locked.
- APR and the comparisons section, alongside your own planned ownership horizon.
Ask about the tradeoffs
Paying points, accepting lender credits, or changing the term can shift costs between upfront cash and future payments. Ask which expenses are fixed, estimated, optional, or dependent on the property.
Continue learning
Use the CFPB’s Owning a Home resources to review the lending process and compare official loan documents. These guides are general education, not individualized financial advice.