Start with a preapproval
Lenders use "prequalification" and "preapproval" loosely; the difference that matters is verification. A prequalification can be based on numbers you report yourself; a preapproval means the lender verified your income, assets, and credit. Neither guarantees a loan, but the verified kind sets a realistic budget and tells a seller your offer is backed. Ask directly: "Did you verify my income and pull my credit for this letter?"
Get at least three Loan Estimates, same day
Every lender must use the same three-page Loan Estimate form, so offers line up side by side. Rates move daily — get quotes the same day so it's a fair fight. This isn't busywork: Freddie Mac's research found two quotes could have saved 2022 borrowers up to $600 a year, and four or more over $1,200 a year.
Start with our verified lender list →
Compare APR and total closing costs, not just the rate
Two loans with the same rate can cost very different amounts. Page 3 of the Loan Estimate has a Comparisons section showing APR and Total Interest Percentage; page 2 shows closing costs including the lender's own origination charges. Write down rate, APR, and total closing costs for each offer — the cheapest loan is usually obvious once those three numbers sit next to each other.
Rate vs points
Discount points are an upfront payment for a lower rate (one point = 1% of the loan amount); lender credits run the other way. Ask every lender to quote the same points setup — say, zero points — so you're comparing price, not structure. Points tend to pay off the longer you keep the loan.
Shop the services you're allowed to shop
The Loan Estimate splits third-party services into "cannot shop" and "can shop" lists. Most people never make these calls — a few phone quotes on title services can trim real dollars off your cash to close.
Lock your rate on purpose
A rate lock holds your rate between offer and closing, as long as you close inside the window and your application doesn't change. Locks usually run 30, 45, or 60 days, and extensions can be expensive — pick a period that covers your realistic closing date, and ask each lender whether the rate on your Loan Estimate is locked.
Don't skip the government and state programs
FHA (Federal Housing Administration — lower down payments), VA (Department of Veterans Affairs — nearly 90% of VA-backed loans close with no down payment), USDA (U.S. Department of Agriculture — no-down-payment loans in eligible rural areas), and your state housing finance agency (down-payment help and below-market first-time-buyer loans — every state has one). A free HUD-approved housing counselor can tell you which you qualify for.
See where rates are trending → · Run the numbers →