Mortgely is not a lender, broker or loan originator. We do not generate or sell leads, we have no lender partnerships, and we accept no payment for placement. That means we have nothing to steer you toward — which is the only honest footing for a page like this.
1. Compare APR, not the headline rate
The interest rate is marketing. The APR folds in origination fees, points and mortgage insurance, expressing the whole cost as one annual percentage. Two loans quoting an identical rate can be thousands apart once fees are counted.
APR is not perfect — it assumes you hold the loan to term, which most people do not, and it handles ARMs poorly. But it is far better than comparing rates, and lenders are legally required to disclose it.
2. Get three Loan Estimates
Every US lender must provide a standardised three-page Loan Estimate within three business days of your application. The standardisation is the point: page 2, line by line, is directly comparable between lenders.
Three is the right number. One gives you nothing to compare. Two gives you a coin flip. Three reveals which is the outlier and gives you leverage on fees.
| Compare | Where | Why |
|---|---|---|
| APR | Page 3 | Rate plus fees in a single number |
| Total closing costs | Page 2, section D | Where lenders differ most |
| Origination charges | Page 2, section A | The most negotiable part |
| Services you can shop for | Page 2, section C | You are free to use someone cheaper |
| Cash to close | Page 2, bottom | What you actually need on the day |
| Monthly payment | Page 1 | Necessary, but the least useful comparison |
3. Shop inside a 45-day window
Multiple mortgage enquiries within a 45-day period count as a single hard inquiry under current credit scoring models. The rule exists specifically so that shopping around is not punished.
So: do your applications in one concentrated burst, not spread across three months. And do not open new credit cards or finance a car in the middle of it — those are separate inquiries and they do count individually.
4. Know what is negotiable
Origination fees, application fees, and points frequently move. Appraisal, credit report and government recording fees do not. Section C — title insurance, survey, pest inspection — is not negotiated so much as shopped: you are entitled to use a provider of your own choosing, and title insurance in particular varies substantially for identical coverage.
The script is simple. Send your best competing Loan Estimate to the lender you would prefer to use and ask whether they can match the closing costs. Many will.
5. Work out the break-even on points
One point costs 1% of the loan. If a point costs $3,500 and saves $55 a month, break-even is 64 months — over five years. If there is any real chance you sell or refinance before then, the points lost you money. Points suit people confident they are staying put.
6. Include lenders that do not advertise
Credit unions and local banks often beat national lenders on fees, and tend to be more flexible on self-employment, irregular income or unusual properties. They also spend almost nothing on marketing, which is precisely why they rarely surface on comparison sites — those sites are paid by the lenders listed on them.
Mortgage brokers can be genuinely useful for complex situations, as they see multiple wholesale lenders. Ask how they are compensated, and get their offer in Loan Estimate form like any other.
Sites that present "pre-qualified offers from top lenders" are almost always lead generators paid per referral, and the ordering usually reflects who pays most rather than who is cheapest for you. A genuine pre-approval requires a credit pull and document review. If a rate appeared without either, it is an advertisement, not an offer.
The checklist
- Get pre-approved to know your realistic budget.
- Apply to three lenders inside a 45-day window, including one credit union.
- Lay the three Loan Estimates side by side and compare APR and section D.
- Shop section C independently — title insurance especially.
- Send your best estimate to your preferred lender and ask them to match.
- Calculate the break-even before agreeing to any points.
- Compare the final Closing Disclosure against the Loan Estimate before signing.
Know your numbers first Work out what you can afford before you talk to anyone, so the conversation starts on your terms.
Open the calculator